Do Online Dropshipping Stores Require EIN?

Do You Need A Business License To Sell On Shopify?

In this article, we will discuss the question of whether a business license and tax ID are necessary to sell on Shopify. We will also explore the process of obtaining these documents and the importance of collecting sales tax.

Do you need a business license and tax ID to sell on Shopify?

- It is easier than expected to obtain a tax ID and become legal.

- The process varies by state, but in Oklahoma, it can be completed in a day or two for around $60-$80.

- It is not necessary to obtain these documents before selling on Shopify.

- It is recommended to wait until you know if your business will be successful before investing time and money in legal documentation.

What happens if you don't incorporate your business before selling on Shopify?

- If you are making a few sales here and there, you can claim them on your personal tax return.

- It is recommended to wait until you receive a notice from Shopify or see consistent sales before making your business legal.

- Shopify will reach out to you to incorporate your business once you hit a certain number of sales or have had your business for a while.

Collecting sales tax on Shopify:

- Shopify has a feature to automatically calculate sales tax based on the state you are doing business in.

- Sales tax is not part of your revenue or profit and needs to be paid to the state.

- An app called TaxJar can automatically calculate and file your sales tax monthly.

It is not necessary to obtain a business license and tax ID before selling on Shopify, but it is recommended to wait until you know if your business will be successful before investing in legal documentation. Shopify has features to automatically calculate sales tax, and an app like TaxJar can make the process of remitting sales tax to the state easier.

Everything You Need To Know About EIN/SSN For Stripe Activation | Shopify Dropshipping Dubai

- Explaining the importance of EIN for activating a Stripe account outside of the USA

- Definition of EIN and its purpose

Why EIN is necessary for operating a business outside of the USA:

- Explaining how EIN acts as an SSN number for activating a Stripe account

- Clarifying that EIN is only necessary for activating a Stripe account, not for other purposes

- Highlighting the importance of using the last four digits of EIN to fill out the Stripe activation form

Benefits of acquiring EIN from Delaware:

- Explaining that acquiring EIN from Delaware costs $95

- Clarifying that no taxes need to be paid for a Delaware company if the owner does not live in the USA

- Mentioning that Delaware LLC formation costs $179 in total

Drawbacks of acquiring EIN from Delaware:

- Mentioning that EIN delivery can take up to 45-60 days if acquired from the Delaware website

- Offering to help acquire EIN in 48 hours if needed

- Emphasizing the importance of not missing out on Stripe as a payment gateway

- Encouraging viewers to subscribe to the channel for valuable content on dropshipping

- Wishing viewers a great day and signing off with a peace.

LEGAL THINGS YOU SHOULD KNOW BEFORE STARTING A ONLINE DROPSHIPPING BOUTIQUE / 6 TIPS 👀👩🏾‍⚖️🛍

What's up YouTube! Welcome back to my channel. In today's video, I'm going over some legal stuff you should know before you start your online boutique. Preferably, dropshipping is what I'm talking about, but you can relate this to wholesale as well. So, let's just jump right into it.

In this article, we will discuss the legal aspects you need to consider before starting an online boutique, including LLC, seller's permit, business account, business license, taxes, and EIN number.

LLC:

LLC is a business structure in the United States, whereby the owners are not personally liable for the company's debts or liabilities. Limited Liability Companies are hybrid entities that combine the characteristics of a corporation with those of a partnership or proprietorship.

Seller's Permit:

A seller's permit is a permit you could apply for from your state to allow you to sell products or services to collect and sell taxes. It is essential to have a seller's permit to avoid any legal issues.

Business Account:

A business account is a bank account used for business transactions rather than personal ones. It is crucial to have a separate business account from your personal one to track your expenses and put that money right back into your business.

Business License:

A business license grants the owner the right to start and run a particular type of business in the city, county, state, or country that issues it. It is a type of permit that indicates the company has the government's approval to operate.

Taxes:

It is crucial to pay taxes on what you owe from when you did have your boutique. If you make over four hundred dollars, you have to pay. You can report it to the IRS quarterly.

EIN Number:

EIN Number is pretty much a business social security number. The IRS tracks your personal tax filings with your social security number and uses your EIN number to keep tabs on your business filings.

Starting an online boutique requires you to take care of legal aspects such as LLC, seller's permit, business account, business license, taxes, and EIN number. Make sure to do your research and have all the necessary documents in order to avoid any legal issues. Don't forget to track your expenses and have a separate business account to put the money right back into your business.

How To Not Get Sued When Drop Shipping!

Anton, the founder of dropshiplifestyle.com, conducts webinars every two weeks to educate people on how to start and grow their dropshipping business. In this article, he addresses the common concerns of getting sued for dropshipping and the legalities associated with it.

1. Selling Copyrighted or Trademarked Products:

- Getting sued for selling such products is a valid concern.

- You can get a cease and desist letter or face a lawsuit for selling such products.

- The only way to sell such products is by getting authorization from the brand owner.

- Dropshipping legit products from authorized manufacturers is a safe option.

2. Liability Protection:

- Setting up a business entity such as LLC or S Corporation can provide liability protection.

- Separating personal and business assets is essential to ensure asset protection.

- Sole proprietorship is not a recommended business structure as it exposes personal assets to business liabilities.

It is essential to follow ethical and legal practices while dropshipping and avoid selling copyrighted or trademarked products without proper authorization. Setting up a business entity such as LLC or S Corporation can provide liability protection. By following these practices, you can run a successful and sustainable dropshipping business without facing legal issues.

How Get a EIN Number For Your Dropshipping Business

Steps to obtain tax ID number:

1. Go to irs.gov and type in EIN

2. Click on the first link that pops up

3. Scroll down to the bottom and click on apply online

4. Click on begin application

5. Select sole proprietor and continue

6. Complete the remaining steps and obtain the number

Reasons to obtain tax ID number:

1. Better access to suppliers and dropshippers

2. Required for certain dropshippers and suppliers

3. Allows for more options to open up

Additional tips:

1. Check out worldwide brands and sell who for supplier directories

2. Facebook page for additional information and resources

3. Follow the dropshipping page on Facebook for more updates and tips

LLC NOT REQUIRED (To Start Your Online Business)

Starting an LLC for your online business may seem like the right thing to do, but it may not always be the best decision. In this article, we will explore the top 5 reasons why you should not start an LLC for your online business.

Reasons not to start an LLC:

1. You are not making any money yet: If you are just starting out and not making any money yet, it may not be the best time to form an LLC. You simply do not have the funds to pay for it, and it may not be worth it until you have some income.

2. You are not at risk of getting sued: If there is no risk of getting sued, then there is no need to form an LLC. If you have no assets to protect, there is no point in going through the process of forming an LLC.

3. You have insurance in place: If you have insurance in place that will help you in the event of a lawsuit, then you may not need to form an LLC. This is especially true for businesses dealing with real estate.

4. There is no tax benefit: Contrary to popular belief, forming an LLC does not offer any tax benefits. You can file a Schedule C as a sole proprietor and receive the same tax benefits.

5. It is too complicated for you: If you are struggling with setting up your business, adding an LLC on top of it may be too complicated. It is important to get good advice and make informed decisions about your business.

While forming an LLC may seem like a logical step for protecting your online business, it may not always be necessary. It is important to consider your individual situation and make informed decisions. Remember that the most important thing is to protect yourself and your business in the way that works best for you.