When selling on Shopify, familiarize yourself with tax laws and regulations of your jurisdiction. This includes understanding if you need a seller’s permit and how to obtain one if required.
Legal Requirements
Is it legal to sell on Shopify?
Shopify only requires lawful operation; it does not mandate a license to start selling. As an owner, comply with requirements for your business type and location. Products like food, supplements, and clothing have legal requirements to fulfill. Luckily, Shopify doesn’t require much documentation. But necessary permits and licenses exist, like sales tax permits.
We’ll discuss:
- Regulated products
- Business licenses
- Determining tax nexus
- Tax documents like the 1099 Form
Compliance and Penalties
There are penalties for selling without a license when required, including fines. Services may need professional licenses, while products might need a seller’s permit. Verify requirements with your local licensing authority.