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do i need a llc for shopify

Published on: January 29 2023 by pipiads

Do You Need A Business License To Sell On Shopify?

do you need a business license and a tax id number to sell on shopify? that's coming up. [Music]. what's up, guys, welcome back. we're back with another great video today, and if you're new here, i want to welcome you to our channel. my name is carrie, i'm an online entrepreneur, online business owner, and this channel is here to bring you the best strategy, secrets and hacks to grow your online business, and in today's video, we're diving into something that is toked about a lot in our community and i get asked this question a lot, and it's: do you need a tax id, an llc, a business license, when you're starting out on shopify, and do you need to charge taxes on shopify when you're just starting out? so let's dive in. the first thing i want to address today is the misconception that it's really really hard to become legal and actually, you know, get the necessary things for your business. in my experience, it's actually a lot easier than expected to get that tax id number, to get your business, you know, official and to be able to to accept sales tax and all that kind of stuff on your shopify store. in my state of oklahoma, you can get your tax id number back just like a day or two, and so it's just really really easy to get started. it doesn't cost a lot. it's usually 60- 80 bucks. you definitely want to check with your state and what is required in your state, but i know here in oklahoma i was surprised at how easy and quick the process was. that being said, the next question we need to address is: do you need to do this before you start selling on shopify? now i want to give this disclaimer that i'm not giving you any official legal advice. i'm just speaking from my own experience and starting multiple shopify stores and going to that process and being able to observe the process with my students, and that is my. my recommendation is that you don't need to get all of your business license and all tax id and all kind of stuff when you're just starting out, and i'm going to tell you exactly why. the reason why is because you don't want to go through the trouble of making your business legal and jumping through all the hoops that your state requires before you know if you're really going to follow through with selling on shopify, doing pronoun demand or e-commerce, whatever you're doing. a lot of people you know there's a statistik that you know- 80 or 85 percent of new businesses fail in the first 120 days. it's so easy to start a shopify store that, unfortunately, a lot of people just don't continue and they don't follow through. they kind of do it as just a hobby and they end up letting it go if it doesn't work out quickly or they just get bored with it or whatever the reason may be. so i don't recommend that you go through, pay the money, do the work, do all the filing to make your business legal before you know if you really have a product that you can sell or if you're going to be invested in it. you know come 30, 60, 90 days or longer. so, with that being said, next i want to tok about what will happen if you don't incorporate your business and you start selling on shopify. here's what. what kind of happens is when you start selling on shopify and if you're just making a few sales here and there, you're going to be fine and you can actually just claim that on your personal tax return. in my experience, you can claim that under your social security number- and i would recommend that you don't collect sales tax if you don't have your business incorporated- and what will actually happen is, once you hit a certain number of sales or you've had your business long enough, shopify will reach out to you and let you know that you need to go ahead and incorporate your business and make it official, and they will give you a time frame to do that before they will shut down your shopify store. so my recommendation is that you get out there, you start selling without going through all the legal process, start to see if this is something you're really going to follow through with and then, once you get that notike from shopify or you see that you're you are consistent, you are going to keep selling on shopify- then go ahead and make your business legal. i want to make sure you understand i'm not a legal professional and i'm not saying that you shouldn't make your business legal. you shouldn't incorporate your business. i'm simply telling you that in my experience and dealing with my own stores, multiple stores and hundreds of students- that when you're just starting out, i don't think it's worth your time or effort to do that before you find out if you're going to follow through, if it's going to be a successful idea, if you're going to have the products, all that kind of stuff, if you're going to have the sales. so that's my best recommendation for you. if you're enjoying this video today, you're learning something. hit that like button. it really helps us. with the youtube algorithm, we can reach more people. we can help more people if you just press the like button. also, make sure you subscribe to the channel. we put out new videos every single tuesday and every friday- tons of content, so make sure you subscribe so you don't miss a thing. the last thing i want to tok to you about is collecting sales tax on shopify. now i want to walk you through just the easiest way that i've found to do this now. first of all, inside your shopify store, when you go into the settings, you can simply turn on sales tax collection and shopify will automatikally calculate the sales tax for no matter what state you're, you're doing business in or what state you're selling in, shopify will automatikally calculate that for you and collect that upon selling an item. now, once you sell an item, that sales tax just becomes part of the sale and it goes into your bank account. so i highly recommend that you have that. you put that sales tax aside, because that is not part of your revenue. it's not part of your profit. you actually need to put that sale, you need actually to pay that sales tax to the state and you want to make sure that you're doing that. the easiest way that i have found to do that is an app called tax jar t-a-x-j-a-r. i'm not an affiliate for tax jar, but i've been using them for a number of years and tax jar will automatikally calculate your sales tax. it will integrate with your shopify store and in most states it will auto file your sales tax monthly for you. so if you are at the stage of your business where you you are official, you go, you have your your tax id, you have your sales tax permit and you're collecting sales tax inside shopify, you need to make sure that you're remitting that to the state monthly. and- and this i'm speaking in my experience from oklahoma, i don't know all of the the rules and regulations state by state- but you need to remit that sales tax monthly and the easiest way to do that is by autofiling with a app like tax jar. that's the one that i've used and i'm familiar with, and it's worked like a charm and made the process really, really simple. so, to wrap this whole thing up, if you are just starting out with shopify, i recommend that you don't go through the legal process. go ahead and start selling. see if it's something you're going to be consistent in. once you get notified from shopify that you need to go ahead and provide your tax id number, that's when i would recommend going to your state, going through the process to make your business legal so that you can continue selling. at that point you need to start collecting sales tax on each transaction and remitting that sales tax back to the state, and i recommend an app called tax jar to do that automatikally for you. so hopefully that was helpful today and you learned something. so if you're ready to get selling on shopify, if you're ready to set up your store, start selling today. i want to invite you to go to shirtschoolcom shopify and get a 14 day free trial of the shopify platform. in my opinion, shopify is the absolute best ecommerce platform and it really covers everything that you can need for your ecommerce business.

When To Start An LLC (Shopify Dropshipping)

what is up guys? here's another video. hope you're all having a great day and I know I told you guys in the past that I was gonna be making a video with my accountant toked about taxes, the business side and basically just a legal aspect of everything overall, and I told you guys that I would have that up by the end of January, before February, but my accounts been super busy so we really haven't had a chance to film all these videos and get them together for you guys to help you guys sort of learn about the tax side in the business side of stuff. so since that hasn't happened yet, I've already sat down with him and toked to him about everything that needs to be done and what we want to help you guys with. so that's definitely coming. we're working on that, but for now I'm just gonna be giving my input on sort of what I've had to go through tax wise and business wise- it's like the legal aspect of everything- and sort of give my opinion before I start toking. none of this is legal advice or anything. I'm not a lawyer, I'm not an accountant. I'm just telling you guys what I've encountered over the past year with my business stuff. so I started all my business stuff a few years ago. I didn't really have like a legal barrier for me as my business stuff. I sort of just freelanced everything cuz I never really made enough to pay taxes. so here in North Carolina, I think, have to make like ten thousand five hundred dollars a year to pay taxes and I really didn't hit that barrier until like last year I really started to make decent money and I don't know I'm really scared up fast. but anyways, you know I started that stuff. I didn't know anything about taxes. I knew when you had to pay taxes but I really didn't know anything about the legal aspect of anything or anything. so really why I had to do was I was networking at this business event- a local business event- and I met this guy who was a lawyer and we started toking. he helps run some stuff at a local business school and I was toking to him about business, the legal aspect of everything and sort of you know what you have to go through. and at the time that I met him I really wasn't doing too much or making much money so I didn't really care that much. but anyways, I started to network with him and tok and then eventually, once I started making a little bit more money, I contacted him and I was like what do I need to do for the legal aspect of my business stuff? and really you don't need to do anything until you start making a consistent amount of money. so let's say you make a hundred bucks this month, you make a thousand bucks next month. don't worry about it until you have a consistent thousand bucks a month, ten thousand month, whatever it may be, just wait till you have something consistent and you're actually making a certain amount of money. that seems like you need to have some barrier with it. so what I ended up doing was toking to this lawyer and we an LLC for me. so an LLC is a limited liability corporation, so that means if someone tries to come after you and sue you for one of your business ventures, whatever it is, they're coming after your business assets, not your personal assets. and for me I'm not 18, so I have to have my dad on my corporation as a member and so with me as a minor, if I was just going as a sole proprietor, then if someone tried to sue me, then it would go onto my parents stuff and go after their asses, some house their cars, whatever it may be, because I am NOT of age. so now I have an LLC and if someone tries to sue me or anything then it goes on to my business assets if I have to lose something. I'm not putting my parents stuff up there from the start, but anyways, when I first started drop shipping and everything I had toked to my parents about it and they were really able to help me may put in their name for my paypal, they put in their stuff for my Shopify accounts, my social security and everything. but I kept that for a couple months. I started to make decent money and then I ended up getting the LLC and an LLC. you don't need one for each Shopify store that you start. you can use it for all your business ventures. I have only one for all my business ventures that I do. everything that I make money from that is not paid from an employer because I don't work for anybody. so all the money that I make, all my business stuff, is held under this one corporation. so that's what I have and it costs like two hundred bucks to file with my state. so that's one thing I want to tell you guys: don't buy your LLC or start your LLC through Legal Zoom, which is the website where they charge you way more than what it actually cost. my, I was looking it up. they want to charge like five hundred, six hundred bucks, whatever, just to get an LLC started. but really it is so simple- and I'm not really sure exactly how it works in every single state because it's different for every state, but for here in North Carolina, all you have to do is get a form online, you fill it out and then you submit it and whether they improve it or decline it- if they decline it- they'll tell you what you need to fix and then you'll be on the road to having your LLC super-easy, a lot cheaper than you know, just paying for it online through Legal Zoom or whatever it may be, because they're making a lot of profit off of people buying from them. but anyways, that's what I did. I created an LLC and now I pay taxes through that LLC and a lot of people ask about the tax things for dropshipping and I do not pay sales tax and I do not charge taxes on my products and I don't pay sales tax because I'm not the supply of the products, I'm not really the manufacturer, the one shipping it. I'm sort of like a middleman. that's what drop shipping is. I have a connection and I sell their products. so tiknically, I don't need to charge sales tax because I'm not the actual holder of the products, I'm not shipping them in-house. it would be different if I had products here, you know, shipping them out of my house or warehouse, whatever it may be. I would have to pay sales tax and I don't charge taxes. I just want to just eat that fee because it gets a little complicated. if I'm not having to pay sales tax, I'm not going to charge people taxes. if you charge taxes and you don't pay the taxes or whatever, it gets really confusing. so I just sort of eat that cost. it's not that much, almost definitely something to keep in mind. so that's sort of the legal process that I've had to go through over the past year. so I have an LLC, I don't have sales tax, and really it's not too bad, it doesn't take too much time. it's just something you really have to learn about and that's why I want to create these videos with my accountant so he can sort of explain you guys what you need to do in order to have everything set up, legalized, tax wise, whatever. so that'll definitely be coming eventually. I'm sorry, guys, it's taking a while. he's super busy. I'm super busy and we're just trying to find the right times to make sure that we can actually get this stuff filmed and have it done properly, instead of just wasting time and not putting you in the right quality. if we're doing this, we want to do it right. we want to make sure this is helpful and provides a lot of value to you guys. so I'm excited for that and I know that's probably my most requested video. so I just made this video to go on an overview of the business side of things like legal wise. but, guys, don't worry about any of this until you start making consistent money. don't do all this and then start a drop shipping store. start a drop shipping store. tok to your parents, get them to be on the paypal, your Shopify account, because you can't be 18. you need to have a parent or grandparent, friend that's 18, whatever it may be. there's someone that's 18 or older. cuz, for me, I'm only 17. I have a year left until I'm legal. so we excited for the head. but anyways, guys, I hope you enjoyed this video, hope to help you out. so make sure you leave a like, comment and subscribe. peace [Music]. [Applause] [Music].

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How to Set Up an LLC for Dropshipping Business? | LLC for Shopify, Etsy & Amazon Dropshipping

[Music]. most Drop Shipping businesses will benefit from starting a limited liability company, LLC. by starting an LLC for your Drop Shipping business, you can protect your personal assets and increase your tax options and credibility. even if you started your Drop Shipping account as a hobby, one viral ad can quickly gain you thousands of product sales, or more attention on your ad can create potential risk that you might not have considered. LLCs are a simple and inexpensive way to protect your personal assets and save money on taxes. you should form an LLC when there's any risk involved in your business and or when your business could benefit from tax options and increased credibility. now let's go through the LLC tax benefits and options for a Drop Shipping business. LLCs by default are taxed as a pass-through entity, just like a sole proprietorship or partnership. this means that the businesses net income passes through to the owner's individual tax return. the business's net income is then subject to income taxes based on the owner's tax bracket and self-employment taxes. Sole proprietorships and Partnerships are taxed in a similar way to LLCs, but they do not offer limited liability protection or other tax options. S Corp option for LLCs: an S corporation s corporate is an IRS tax status that an LLC can elect. S Corp status allows business owners to be treated as employees of the business for tax purposes. S Corp tax status can reduce self-employment taxes and will allow business owners to contribute pre-tax dollars to 401k or health insurance premiums. the S Corp status requires that the business pay the employee owner a reasonable salary for the work they perform. in addition, the business might need to spend more on accounting, bookkeeping and Payroll Services. to offset these costs, you'd need to be saving about two thousand dollars a year on taxes. we estimate that if a Drop Shipping business owner can pay themselves a reasonable salary and at least ten thousand dollars in distributions each year, they could benefit from S Corp status. you can start an S corp when you form your LLC. LLC also creates credibility and consumer Trust. Drop Shipping businesses rely on consumer Trust. credibility plays a key role in creating and maintaining any business. es gain consumer trust simply by forming an LLC. a growing business can also benefit from The credibility of an LLC when applying for small business loans, grants and credit. what is the best way to register your LLC for your Drop Shipping business? Step 1: choose a state to register your LLC. to utilize the US fulfillment and fast product delivery to your customers. you should incorporate your LLC in states that where the company from which you will Source your product from have fulfillment centers in. specific business friendly States like Delaware or Nevada can be a good place to start. you can register your LLC in these states easily, even if you live in another country. step 2. choose a name for your LLC. you'll need to create an original name for your LLC. generally, you should always do some research in your chosen state to avoid picking a name that already exists. along with that, you'll need to include a designator for an LLC, normally by adding suffixes like LLC or limited liability company, for example, bio trading LLC or Ace management limited liability company. step 3: appoint a registered agent. in general, you must have a registered agent for your LLC. simply put, a registered agent is a person, individual or company who receives legal papers and has responsibility for filing for your Drop Shipping business. your registered agent must have a physical address in the state where you incorporate your LLC. step 4: Create Your llc's operating agreement. even though Most states don't require it, all llc's with two or more members should have an operating agreement. it is a document that outlines the operation and the agreements between the owners of your LLC. step 5: file artikle of incorporation with Secretary of State. after that you must file the certificate of formation with your secretary of state's business entities Division and the office of the judge of probate to officially incorporate a new domestik limited liability company. the state filing cost for LLCs is between 100 to 750 dollars and it depends from state to state. the filing fee for foreign LLCs is usually a bit more than domestik LLCs. a domestik LLC means that you are already a resident of the state you live in and want to build a business in that state. foreign LLC, on the other hand, is for people living outside a US state but wanting to start a business or a franchise of their business in that specific state. with that said, most businesses would be applying for a domestik LLC. you can file the certificate of formation online or by mailing it to the Secretary of State. expect the LLC certification process to take approximately two weeks. this is three to four days for the probate judge and 10 days for the Secretary of State. step 6: obtain an EIN. an EIN, or employer identification number, is a federal tax ID issued by the IRS. they use your EIN to readily identify your firm and tax filings. all LLC firms in the USA pay a business privilege tax and the state requires you to have an EIN to file. you may also be required to provide your EIN when opening a bank account or applying for municipal permits or licenses. obtaining an EIN is a slightly longer process compared to their previous steps. I'm sure you know anything to do with the IRS is confusing. first, you must have complete knowledge of your LLC, such as your company information, managing member information, business address, business information, company details and even critikal information regarding vehicular assets and federal excise taxes. this is another reason why getting a professional registered agent is way more convenient, as they can do this for you as part of their service. now let's tok about to form an LLC, and that is hiring a professional formation service. professional formation services do all the steps you should be doing on your own, from filing necessary forms to acting as your registered agent. you usually have to allocate a specific budget for this option. Inc file is one of the best companies out there to help you form your LLC. you can click on the link in the description to get access to this deal. Inc file is one of a kind, as it offers a free package with services such as preparing and filing your artikles of organization. well, you still have to pay 237 dollars for the state fees, which you would have to do anyway if you chose the DIY option. but looking at the bigger picture, all other companies will still charge their service fee on top of State filing fees. Inc file does not collect this fee. this plan already includes a free registered agent for your first year of subscription and 119 annually moving forward if you decide to continue the service after the first year. Inc file's next packages are the gold and platinum packages, which both have package fees already on top of the 237 dollar State fee. each package has its own set of services which are all worthy of the subscription you are paying for. the gold package offers you the benefits of filing reports and taxes for your LLC. every year, USA LLCs are required to file a state annual report. this report is essentially an information update of your file so that the state knows who is now in charge and how to contact your company. USA LLCs are also required to file state tax returns. to make matters even more complicated, your annual report and business privilege tax share a document and are due at the same time each year. with the ink files gold package. you won't have to scribble notes of these reports because Inc file will handle the whole process for you. your platinum package also has these services in the bag, with the unique edition of expedited filing, getting a domain name and a business email, which essentially increases your llc's credibility. ink file also has an exclusive partnership with

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How & When To Start A LLC or ABN (Shopify Dropshipping)

and what I did was I use it Abyan controls, making more than fifty thousand dollars a month in revenue. so, as many roughly say, 20 percent of that. so until I was making like 10 grand a month in that profit, which was a bit too light. then I transitioned into a ACN. [Music]. in this video, we'll be toking about LLC's and ACMs. this is something that has been highly requested, a lot of people always comforting: when should I set up my baby and how do I do it? when's a good time to set up my LLC? so I'm gonna address all those questions in this video. before we get into the video, let's announce last videos winners. here's a winner: four thousand dollars worth of courses or consultants calls. all we have to do to be qualified is drop a comment below, like the video, send me a screenshot on IG and I'll be picking a random person every single video. let's get right into the video. so LLC is for people who are the US and ACN of people in Australia. those are the two situations I know Canada, UK should have similar options. so what we teach is sort of like a universal trend or form where you should follow that should apply to everyone. so there is two options when it comes to want to create your LLC. you credit LLC before you even start dropshipping one. this will motivate you to make job, shipping work and see it through to hand - the bad thing is you'll be down 303. it's pretty good because now you'll be able to for several companies, several different stores. I thought your LLC and for you won't have to worry about it later on. especially when you're scaling, when you have a lot of things gone, you don't want to be worrying about setting up at LLC. but it is pretty easy nowadays, so this shouldn't be too much of an issue. what I do prefer is option to create an LLC once you get consistent sales, one maybe. wait till you're making at least one to two cells every day consistently. then you know that drop shipping is something that you're gonna stik with. then drop $300 to credit LLC. so now you won't be down $300. where you start, you have that extra $30 will part testing. 3. this is one less thing for you to worry about. when you're starting out what you're starting out. there's just a bunch of information bombarded at you and the last thing you wanted to is deal with setting up an LLC. you just want to get started, get your foot's. who sells running and having an LLC- and theorem that out- definitely shouldn't be on your plate, especially when you just get started. you're just going to get overwhelmed. so that's why recommend option two. well, you definitely want to avoid is you don't want to make an LLC after you make more than, say, 10 to 20 thousand plus in profit per month. like what's it making that much money? you'll be hit heavily by taxes as that money will be unburned, either your personal income. so how to go ahead and set up an LLC? so this for United States. this has been recommended by a lot of filler drop shipper friends of mines that are pretty well with the drop shipping space and they use WWI. companies works calm, it's very good, very quick and it takes less than one week to get all your required documents. that's why it has been highly suggested. they do for a pretty good price and they're just easy to work with them. they're highly professional. now, if you're Australian, what you want to do is you want to get a ACN- Australian company number. this is best dunker an accountant, and you follow the same rules above where, like you're only recommended to do this after you get consistent cells, like ACM. I recommend ACN for when you're making more than, say, five thousand dollars in net profit per month you want to set up at a cm. anything before that, you can stik with an Australian business number which can be easily applied for online with the ABN over. that's something you could wait until you make at least once to consistent cells every day to worry about, other than they just stik with your personal setup. if you're making no money, nothing is gonna be triggered until you're making at least once into cells every single day. should you consider? look at you to a be ends and what I did was I use an ABN contours making more than fifty thousand dollars a month in revenue, so as many to roughly say twenty percent of that. so until I was making like ten grand a month in that profit, which was a bit too light, then I transitioned into a ACN. but ABN structure is already pretty decent. you just don't want to have a personal income sort of structure. but what about Abyan when you make one or two sales and worry about a cm when you're netting more than ten grand, five grand a month, and that's sort of what you should follow? but yeah, that's a whole video, straight to the point, no BS if you watch it's like completely for free. it's in a description below: if you with $1,000 worth of courses of giveaway, Chapra coffee, bellowing, I'll be picking the best confident and other than that, I hope you guys have been planning value in this video. question: under: what type of videos have you been enjoying the most from my channel? I wanna read you guys responses. I'm gonna double down on what you guys want and I really want to build a strong community and have all of our content tailored to the audience. other that, hope you guys are having an amazing day. don't forget to subscribe because I'll be see guys with more value tomorrow. peace.

When To Open An LLC For Your Shopify Store (Taxes)

all right, Danny, this questions on you: when should you form your company? he doesn't even know the answer. do you even dropship, bro? anyways, hope everyone is doing well and this is a question. you've seen the title and thumbnail did? I get asked all the time: when should you start specifically? most people think an LLC would be the best route and we'll explain that in a moment. but I get asked this question a lot and I'm sorry it's very bright out- I woke up like an hour ago just been inside. but a lot of people always ask this because there are many benefits to having a legal company where all your money is coming through. so I want to answer this question real quick on what I did, because what I did costed me probably $100,000 worth of mistakes just in taxes because I didn't do this properly. so just to make it very clear for people who are in the United States, that is where this becomes very specific to you, because fur people elsewhere across the pond or in a different country, any other country, I don't know the exact tax laws. however, I would assume, having a legal company and some sort of entity, that it would be similar. okay, so for me, I would recommend to someone- only open an LLC for your ecommerce store once you are making a little bit of consistent profit. the reason I say this- and it would tiknically be better to do it, you know, right away, before you start writing any money through it- the reason that I mentioned this is only because, well, you can't even see me- is only because if you have a smaller budget- even if you have a $3,000 budget and you go spend 400 dollars to open an LLC, well, the problem is that's not like really prioritizing your money the right way. that's a lot of money to spend for someone who doesn't have the biggest budget you know on something that's not gonna directly make you money. so keep in mind, a lot of ecommerce businesses fail. that's just the reality of it. so you want to make sure that before you really you know, go file that company, go do anything too crazy. you just want to make sure that it's working for you. so I always recommend to people: wait until you start making some consistent sales. let's see if we can get you guys to seem there. we go start making some consistent sales just so you know you can properly have something coming in under that LLC, because there's no point in having an LLC if you never run any money through it. right now the benefit really comes in on a couple key points. the first one is write-offs. it's much easier to write off all your expenses. so, for example, you spend a lot of money on Facebook ads. you spend money on your product cost ordering from your supplier. those are basic write-offs and under an LLC you can write those off. but you could also get a little bit more fun with it. you go buy a new phone, you go buy a new laptop. you can write those off as well. they're no longer personal purchases because you use them for business as well. let's say, you go on a trip while you were working, while you were traveling, right. so there's different things where you can have a lot more advantages, but at the end of the day, it's only an advantage if you're making money and able to substitute that. so the way that I recommend people do it, I recommend that you open an LLC and you have your CPA or whoever your financial and tax person is. file that LLC as an S corp for your taxes. that has been the best structure for me with e-commerce. by the way- disclaimer, I am NOT here to give legal or tax advice. I'm not the expert on that. I recommend you hire an expert, but that is, you know, what I understand to be the best situation and that's what I've done and it's been working for me. so open an LLC once you are making money- I would say, once you make it- a couple thousand bucks a month at least. that is when you should go start putting some money towards that, because think about it, you know, I see people trying to start ecommerce and for some of them it works with like a thousand dollar budget. right, well, you're not gonna go spend half of that. like somehow LLC's will cost six, seven hundred bucks to file, so it doesn't make sense to do that, you know. I mean, you're gonna need money to start the business and at the end of the day, you want to make sure that it's gonna get sales and then it's gonna work okay. so I hope that this made sense. I'm sure this is gonna breathe some more questions, so please feel free to leave them in the comment section down below. this is super simple, easy video and, keep in mind, this channel is just specific to very valuable points, things that people are asking, things that I know I was curious about and you know, anything else you guys need help with. so these videos are not focused on production quality, they're not focused on duration or any of that stuff. so it's just picking up a camera I am. you know, I was in the middle of working, but I literally just got this question again. so I want to make this video. I'm literally about to edit it. there's no editing to do, but cut it, upload it to the e calm seas in YouTube and then send that link to someone as the answer so they can get a full breakdown, and I'll post it on my Instagram story too, just so everyone can learn from it, right? so I hope you enjoyed this video. if you did, I hope I earned that thumbs up. greatly appreciate you guys. smash that like button, help this new channel grow and, if you're not already, make sure to subscribe to the family if you're doing anything ecommerce or marketing related. we got a lot of fun content coming your way, including some different branches of e-commerce, some things and businesses I haven't really toked about, and I think we're also going to kind of have like an e-commerce easing garage, maybe a whole channel, or maybe just like a subsection of this channel for anyone who's interested in car stuff. so we're definitely looking to expand and do a lot of different things, so I hope you guys are going to stik along for the journey. but, that being said, I'll be seeing you in the next video. peace.

Why do I need an LLC for my Shopify Store? | Calls with Jim

hello youtube. today I have a call with a gentleman from Macedonia who, like many of you, is opening an online store and he has many questions before he gets into a Shopify store and how to accept payments, and you stripe so on this call, we're going to just go through, answer a bunch of his questions and see if we can I get some more information out there for you guys. that's so, that's useful, so let's get to it. [Music]. hello, James Baker. how are you doing great? how about you? I'm doing great. where are you recalling from today? from Macedonia, Macedonia, first person I've spoken to from from Macedonia. awesome, oh, no, thanks for calling in. I guess you've seen some of my videos before. normally, how we do the calls, you can just tell me a little bit about what's going on with your business and we can get in to some of your questions. yes, so this is, this is my story. I mean, I am planning to open a kind of a drop shipping business, like many others do, and I have some questions about the opening of business, a firm and United States, because apparently that's the only way I can process payments, I believe. well, yeah, I mean yes, that's a. I mean that's what we're doing all day is opening. the LLC has many reasons and many purposes, and one of the main one is to facilitate banking and business operations on a global scale. yes, so now I know that I should open a single member LLC. right, probably, probably not, yeah, and so I wanted to ask you: in what state should I register my LLC? so I'm sure you've been. if you're watching me on youtube, you've been searching around for a while because I'm not that popular. so you know all the sides tok about Delaware or Wyoming, New Mexico, Nevada, whichever, wherever, it doesn't really matter. to be honest with you, Delaware and Wyoming have the best privacy. Delaware's. Delaware is the best privacy if privacy is very important to you. if it's not important to you, there's cheaper states. but the truth is they all work for that. they all do the same thing. therefore, a non-resident, they basically they all work. no, I did my research a little bit and I am. it's weird that nobody toks about New Hampshire, because it seems that in New Hampshire there is no sales tax, there is no income tax and there is no nexus. so so that's, that's a good points. I don't know if there's no income tax in New Hampshire. there's no. yeah, there is income tax, but there is tax on investment revenue. so I wanted to ask you: that's the single-member LLC? I mean, the profit is data like a dividend. no, so do owner. so all of those things you mentioned, sales taxes are, that's based on where you're selling your stuff. so if you're selling all of your stuff to people in New Hampshire, it doesn't matter if you have a New Hampshire company or not. you still not gonna pay sales taxes. but if you have a New Hampshire company and you sale all your products to people in California, you still have to pay sales taxes. California. it doesn't matter that you have a New Hampshire company. okay, and is. regarding the income taxes, the position with the LLC is that you do not doing any business in the United States, so none of your income is subject to us taxation. so if your income is not subject to taxation, it doesn't matter if the state charges in income tax or not, because the- that's- that's really not the- it's not subject to taxation and the big income taxes are on the federal level and, no matter what state you choose, you still have to deal with the federal taxes, which are, again, we're taking the position that you're not subject to taxation. your income is not us source income, so I'm not paying any taxes. you wanna see you? yes, if you're doing Amazon, FBA, you have no office or employees or anything in the United States, you don't have to pay any taxes. okay, and what about the forms, the two forms that I have to submit? it says that that is done by your, if, I mean, if you represent me. yes, those are informational forms, but yes, those would be done. does it be completed? every year, you have to renew your company, with whatever state you decide to open it in, and you have to file the returns to the IRS. okay, and I wanted to ask: what is? is it the Internet online sales tax? it's the same with the economic Nick Nexus, like remote seller Nexus. there's income, there's Nexus for everything. there's income tax Nexus and their sales tax taxes. there's a lot of. it's a really complicated subject and it's different for every state and this is our all state level concepts. the Internal Revenue Service, the federal level is. you know those are the effectively connected. income is more or less the Nexus rules, but the states have different thresholds. some states have economic Nexus thresholds for income taxes, which is, if you're doing enough sales in the state, then you have to pay taxes, and they and most of the states that charge sales taxes have that's. the new thing is that they- all the sales tax- have economic Nexus as well. so if you're planning to work with Amazon, the good thing is, Amazon will do most of the tax work for you. they'll do most of the tax withholding for you. know, I'm plan to open my- my website, not a Shopify store, okay, so that? so generally, you have to pay taxes on. you have to pay sales taxes when you sell over 200 items in a state, or over 100 thousand dollars of sales in a state in any given year. no, ever. each state has their own rules. yeah, for example, New Hampshire doesn't have economic Nexus. yes, yes, but it's all about where you selling the items. so even if you have, even if you have your company in New Hampshire, you're not only selling products to people in New Hampshire, you're selling products to people all over the United States. so it's based on where you sell the product. so if you sell- you know, 200 products in California, 200 in Florida, 200 Mississippi, 202 in New York- you have to file sales tax returns on all of those states. okay, so I have to call it. yes, every state has their own rules, and before you collect taxes, you have to register, get the number and I'm sure there's a good plugin for Shopify that you can use to indicate for it. it's all based on shipping address, so when they indicate their shipping address, they will automatikally charge sales taxes and you need to have a little bit of systems in place before you get rolling on that. and and yeah, that's, that's kind of how it works, it's its new, it's all very new. so I don't know how the states are imposing these, these laws, or how they're, how they're working with this, but these are what the laws are. they're very new, ok, and so I wanted to ask a registered agent: does there a dependent agent know, if you use a, if you use a registered agent company, that's all they do, and so they they unit. so I will be provided with a physical interest rate. most registered agents don't act, don't receive mail for you. and what about if I sign up for a spiritual office? does that seems like a dependent something kinda? I mean, you can set up for a virtual mailbox if you have an office, as long as you don't have like a real office where you're actually doing business, then you should be fine, thank you. if you never come to the United States and you don't have any employees here, people who are can sign contracts to your behalf. you should be okay. okay, and what if I have us suppliers? that's fine, they're doing their own business, okay. so do I need the business license? maybe? I'm not sure what you're, what you're selling, you're not. you're not conducting business in the state, so you probably don't need a business license. what do you plan? what are you planning to sell? well, I don't know. maybe some lightning bolts buy books. yes, okay, maybe, and okay. so what do you think? will I be verified by stripe? I can't tell you, I don't know. some people who have more issues, some have less, some people need iTunes, some people don't. stripe is inconsistent in the way they open accounts for people. yeah, because the thing is I have social security number, oh good. so it should be a lot easier for you, because I also have a bank account in America, in Massachusetts, okay, so does that makes th?