Do You Need An Llc For Dropshipping

So where do you file for an llc.

Do you need an llc for dropshipping. When it comes to protecting your business and personal assets you should always be on the safe side. An dropshipping business using a fictitious business name in los angeles county ie. You are a business that uses a dba doing business as trade name to trade that is other than the full legal first and last full name name of a sole proprietor or a name other than the llc or corporation business name need an fictitious business name.

Yes you do need an llc for your dropshipping business. What this means is that the business is recognized as a person in the eyes of the state and therefore has its own liability. This being said if your budget is high enough you should go with an llc but if you rather start a little more lean and like i said have a low risk product rather invest your money in marketing etc.

If you are selling like necklaces or shirts an llc might not be as important. In the inventory source dropship supplier directory we have added several filters to help find a supplier who will approve sellers from your businesss location. Start your free 14 day shopify trial.

Youll need this number to file your taxes apply for wholesale dropshipping accounts open a bank account and pretty much do anything related to your business. And get the llc later on. Even if youre operating your dropshipping business alone its still a very good idea to get an ein for several reasons.

Fortunately getting an ein number is easy and free. If you are outside the us contact the supplier with your basic location details to see what documents or account details you might need to provide. However if you want to pick a new name for your business that is not your real name for example if i deborah sweeney decided to pick the perfect doughnut as my new business name instead of using deborah sweeney youll need to register a dba to protect that name and do business with it.

However if your dropshipping business is a partnership llc or corporation you will need an ein. In my course how to incorporate your business on your own. The benefits of an ein for dropshippers.

Each state has different requirements for filing and for paying taxes. We have outlined some tips for starting a dropshipping business and the exact time when you should get an llc.