Starting a dropshipping business on Shopify is easy and straightforward. You don't need a business license to get started, but there are a few things to keep in mind. With dropshipping, your supplier is responsible for the logistics of storing, packaging, and shipping the products to the end customer. To legally ship direct or sell products online in the United States, you must request an employer identification number or sales tax identification number.
Similarly, future dropshipping sellers are considering obtaining the Shopify store's business license and are wondering if they need it. In most cases, you need a license to ship directly to Shopify. However, as long as you want to operate your dropshipping business under a name other than your own, you'll need to obtain a Doing Business As (DBA) license. You may have to apply for a sales tax permit or pay customs or import duties if you plan to ship directly internationally.
If a Shopify dropshipping supplier has a sales tax nexus in the state to which the item is being shipped, whether they are retailers or direct shippers, they must collect sales tax. When it comes to legality, dropshipping is completely legal in the UK, as it's just a business modem. When starting a dropshipping business on Shopify, it's important to remember that you need to invest money, time, and effort. You also need to choose the right product if you intend to make enough profits and income. If your dropshipping business doesn't comply with the laws applicable to your business, you may be subject to fines.
In conclusion, while you don't technically need a business license to start selling or dropshipping on Shopify, there are certain legal requirements that must be met in order for your business to be compliant with the law. It's important to research the laws applicable to your business and obtain any necessary licenses or permits before starting your dropshipping business.
