A business license allows you to legally run a business. Main license types to consider are seller’s permits. You may need licenses for states where your business has locations. You need a license if selling products requiring one. Alaska, Delaware, Montana, New Hampshire, and Oregon have no sales tax. In California, you need a seller’s permit if you intend to sell online.
As you begin planning your online business, it’s crucial to start by finding out what you’ll need to operate legally. There’s paperwork and permits to figure out in the earliest stages. A seller’s permit identifies you as a collector of sales tax. You usually need a business license to sell regulated or taxable things online. This means registering your business, providing tax information, and possibly getting permits depending on location and products.
The short answer is no, you DON’T need an LLC for Shopify. Shopify is creating stunning designs for product displays, adding trust badges, thank you pages, etc.
You can sell on Shopify without an LLC. However, you need to organize as a sole proprietorship or partnership. You also need licenses, permits, and adequate liability insurance. Without an LLC, you risk personal liability if something goes wrong. Shopify also enables you to sell online without content limitations or hefty fees.
The main benefit of having a company is liability protection. With a sole proprietorship, you are personally liable. With a company, the company itself is liable. Companies also allow you to raise capital from investors.
When starting out, it’s hard to know what you need to run effectively. You need to know essential rules, like needing a business license to sell goods and services. You also need tax information and permits depending on location and products.
Personal assets could be at risk without an LLC if sued. Financing and credit cards may also be harder to obtain. Before selling on Shopify, set up a legal entity like an LLC or corporation.
Shopify doesn’t require a license. But you may need one if your location or business type requires it. You also need tax ID information. Selling on platforms is considered a business.
LLCs provide benefits but aren’t strictly required to begin selling on Shopify. Research regulations for your industry and location to ensure compliance. Selling as a sole proprietor is possible, but forming an LLC better protects your personal assets.