Do you need an LLC for Shopify? the brief answer is no as it is not necessary. However, having an LLC is profitable and helpful for a beginner in business. First, the newbies in the business world need to know about Shopify.
What Is Shopify?
Shopify is a well-known e-commerce platform that provides the best opportunities for entrepreneurs to build their online businesses or shop. It is also a good platform for small online businesses.
You cannot use the services of Shopify without paying the bills. There are specific packages from which you have to choose according to your business. Learn more about Shopify.
Advantages of Shopify
There are a lot of advantages of Shopify for people who want to start their small businesses. Some of them are given below
1. Easily With Deal
The first ever advantage of Shopify is that you can deal with it easily. There is no any rocket science about it. You can create your online store easily without any hesitation. Moreover, without any specific knowledge.
2. Contributing Online Sources
Shopify is also very contributive and helpful for people. Because through its online community forums you can get the answers of your queries. Additionally, you can also get new ideas and notions for your business.
3. Give Wide Opportunities
Another benefit of Shopify is that it gives you a large number of opportunities. Therefore, you can manage your online store more absolute way. One of them is that you can integrate with 1,200 apps available in Shopify app store.
4. Worthy Online Platform
One more benefit of Shopify store is that a single e-commerce platform where you can manage all your products, payments and shipping within your one shop.
Definition Of An LLC for Shopify
Before describing anything else, we will inform you about an LLC. An LLC stands for “Limited Liability Company. ” It is a business network that bestows personal liability protection and tax favor to its owners with limited restrictions. That’s why small business owners know them well.
There is no desire or need for a specific or lowest number of people for the formation of an LLC as it can be possible by one or more than one individual, company, or other LLCs. Moreover, it can be linked with other authorized business activities also consisting of online business, for instance, a Shopify store.
Is The Formation Of An LLC for Shopify A Difficult Task?
Forming an LLC is not a difficult task; however, a little bit of time taking and money. This is different for everyone, as other states have various regulations or restrictions. You have to follow them according to your state or place.
All you need is the name of the business you want to start, your personal information, and your address. A condition in choosing your business name is that you can’t select the word already in use.
You will find some paperwork that you can submit online or also through the mail. After a few days or weeks of your submission, you will receive a notice about whether your LLC is approved. And if it is approved, then you will get a certificate.
It is an excellent step to make a separate bank account for your LLC before making a Shopify store.
Companies That Provide Services for the formation Of An LLC For Shopify
As you know, the procedure of forming an LLC for your business; however, if you still feel any hesitation or restriction, then many LLC service providers guide you through everything about an LLC formation.
You may find many websites of LLCs, however here, we mention some of them which are best at their services are following;
- Incfile service provider
- Zenbusiness service provider
|Incfile service provider||Incfile is a best option forever for those who do not want to spend even a little bit of money. As it is affordable because it does not charge even a single dollar for their registration fee.
They started 5000,000 businesses in 16 years and it shows that they have much experience in this field. However, you can go to this service provider if you want to get only basic LLC services. Therefore, if you want advanced settings or features for an LLC then incfile is not best for you. As it is costly in its golden and platinum packages that are not according to your demands.
|Zenbusiness service provider||Here is another service provider called Zenbusiness which is best. If you are looking for complete and advanced packages for an LLC formation.
They have good packages for their customers for just 49 dollars. Moreover, they give us a registered agent for a year and many other things. Furthermore, one of their best packages provides us free EIN registration and many other guaranteed features.
Is LLC for Shopify Similar To A Business License?
Well, the answer is no, despite people thinking that both are the same as they have a misunderstanding about it. LLC is not similar to a Business License.
A business license is a type of certificate issued by the government of your country through which you can start your own business.
However, an LLC is a legal entity not issued by a trim level like a city or country as A state gives it.
The formation of an LLC is not rocket science. After doing some necessary paperwork, your LLC is being formed. If you want to enlarge your business in different countries or states that recognize LLCs, then an LLC is the best choice.
Do You Need A Business License For Shopify?
No, you do not need a business license for Shopify as it is not necessary. However, there are some certain conditions when it is necessary. For instance, you need it when your city,country or some kind of business demands it.
As it is already mentioned above that license is issued by the government and LLC is by state level. Moreover, Shopify also does not demand a license from its customers.
Therefore, Shopify stores can work as sole proprietorship. To run a legal Shopify store, you only need a social security number (SSN) or tax identification number (TIN).
Pros And Cons Of Sole Proprietorship
|Pros Of Sole Proprietorship||Cons Of Sole Proprietorship|
|Sole proprietorship has an advantage in the tax structure. Head of the business claims taxes on their personal tax return. Therefore, they are taxed only once from their income.||On the other hand, sole proprietorship also has a disadvantage. Since the creation of the business and its head are the same individual. Therefore, he or she will be fully responsible for any lawsuits or liabilities incurred by his or her business.|
Do You Need An LLC For Shopify Stores?
The brief answer is no, as having an LLC is unnecessary for Shopify. However, there are certain conditions in which you must have permission or a license. These conditions consist of having the business of food, tobacco, and alcoholic products.
Yet there are certain benefits of having an LLC for small online businesses, which are the following:
- Personal Liability Protection
- Save on taxes
- Validity of business
- Getting more funds
- Having a significant name
|Personal Liability Protection||If you are a particular owner of your business, LLC will provide you personal liability protection. Moreover, always try to save your personal assets whenever someone tries to damage your business.
In addition, helps you especially when you are producing a lot of money or doing business selling food and alcoholic items.
|Save on taxes||Having an LLC gives us one more favor that it can save you on taxes. LLCs are being permitted by the IRS, that is how they want to be taxed. This gives you a benefit of self-employment taxes.|
|Validity of business||Another profit of having LLC is that it gives your business a professional and valid look. The fact is that when a customer comes to know that your business is an LLC it increases the validity of your business. In addition, grabs the attention of more customers.|
|Getting more funds||There is one more benefit that you can get more funds from investors because having an LLC makes your business legitimate. Moreover, some investors find it more trustworthy for funding.|
|Having a significant name||One more advantage of LLC is that you can get a significant name of your Shopify store which nobody can use for their shop on Shopify.|
Frequently Asked Questions (FAQs)
1. Is LLC For Shopify necessary?
The answer is no. The formation of an LLC to start your business on Shopify is your own choice. It totally depends on you whether you want to or not. However, having an LLC is profitable as it gives your business a professional look.
2. Do You Need A Business Account For Shopify?
You do not need a certain business account for Shopify as it is not necessary. It is only a general recommendation of creating an account for online business.
3. Is LLC Required For Drop shipping?
Well, simply the answer is yes. You always need an LLC for drop shipping business. The reason is that it is a principal or rule for this online business. Moreover it can protect your personal assets and drop shipping business.
4. Can I Sell Products Online Without LLC for Shopify?
You do not need an LLC for Shopify likewise you can sell any of your products online without having an LLC. It is a business in which any individual can sell their products across the world. It is called a sole proprietorship.
5. Can I Sell Without Registration?
No, you cannot sell your products without registration as it is against the system or illegal. You must have to register before start selling your products.
6. What Are The Effects Of Not Having A Registration?
There are a lot of effects of not registering your business. Like you may get a negative feedback from your customers. Because they will think that if you do not follow the instructions and do your business illegally. Than maybe you are also involved in many other illegitimate activities. This will cause a bad effects and you cannot be able to grow your business.
7. Is LLC for Shopify Beneficial?
Well, the answer is yes. LLC is beneficial for ecommerce as it gives you personal liability protection and also save on taxes. It can also give your ecommerce store a credibility and validity. Moreover, you can get more funds from Investors as it gives your business a legitimate overview.
8. Can You Use Shopify If You Are Not Selling Anything?
Generally Shopify is a platform like Amazon. Only the difference is that on Amazon people make websites. However, in Shopify you are creating an online store for selling your products all over the world. Despite the fact you can also use Shopify without selling any product .
9. Should I Create An LLC If I Sell Products Online?
If you are planning to start an online business or already having one for selling products. Than it is good to choose the option of creating a limited liability company (LLC). Because it has a lot of advantages for your online business.
10. Is Business License Have Similarity To An LLC for Shopify?
The brief answer is No. Business License is not similar to an LLC. Business License is something issued by government or on a small level. However, on the other hand LLC for Shopify is some kind of document which we get from a state level. Therefore, we can start our online business all over the world.
11. Is Shopify Worthy For Small Business?
Generally speaking yes. Shopify is best e-commerce platform for small businesses. It is also good to run large Businesses and also give new ideas and tools to the owners.
12. Can Shopify Ban Or Close Your Store?
Well the answer is yes. Shopify can ban or close your store in order to no follow the instructions given by it.
If you are going to start an online business for selling products on Shopify or already having one. Than having an LLC is a good choice for more better results. Because it gives you personal liability protection, saves on taxes. Moreover, it gives your business reputation more legitimacy and worth. Furthermore, Shopify is also the best e-commerce platform for newbies who want to start their small businesses. It is also easy to use and gives many favors and opportunities for the owners.