The prospect of starting a business is both exhilarating and daunting. You want to make a difference in the world with your service. You also want to read positive customer reviews and build a small firm that will last for generations. However, if you are starting a new business, like many Shopify users, there are a lot of things you do not know, which can be annoying.
Follow this article and you will learn about Shopify and do you need a Limited Liability Company for it.
What is Shopify?
It is the most popular platform for building and managing online stores. This system is essentially an e-commerce version of WordPress. Today, it has over a million users worldwide selling its products and services.
The platform’s concept is straightforward, it appeals to small and medium-sized organizations. This platform provides you with all the resources you need to develop, launch, and maintain a successful e-commerce site. Although it faces considerable competition, still it remains the market leader.
Why should you use Shopify?
If you do not have a large budget to run your business, Shopify is what you need. It is the most popular e-commerce platform. It offers a wide range of design options and e-commerce features. Sites on Shopify are more mobile-friendly. Users can create AMP pages, and Shopify’s point-of-sale tool is thought to be superior. It makes selling across multiple channels simple.
How long does it take to set up a Shopify store on average?
You can set up a Shopify store in under 30 minutes. This timeline, however, does not account for all of the work that goes into it prior. You must take care of legal problems, browse the theme shop, and plan out your store. You also need to come up with an organization idea and find trusted suppliers.
What is a Limited Liability Company?
An LLC is a business entity that offers all of the benefits of a corporation. It also allows you to carry through any company profits and losses on your personal tax return.
It is a mixed type of business organization in which the LLC’s owners are referred to as “members.” These members benefit from the benefits that an LLC provides. LLC members might be a single business owner, a group of partners, or another company.
What are the benefits of forming an LLC?
There are numerous advantages to incorporating an LLC. For starters, it is a fast and affordable process.
It is an excellent first step toward making your e-commerce business “official.” This validation can have an impact on you as an entrepreneur, as well as help potential buyers believe your “legit” brand. Legitimizing your firm can help you get outside capital.
It can benefit you in getting loans or investors, and possibly even business partners in the future.
How to Create a Limited Liability Company
Pick a name
It is crucial to name your LLC administratively. Your firm name is the first impression many people have of your company, and you want it to be a good one.
It may take some time to name your online store. The perfect name does not occur to everyone at once. It may be necessary to do a lot of brainstorming and even collaborate at times. There is also a slew of free resources available, like Shopify’s business name generator, to help you get your imagination going.
Once you have decided on a name, double-check to be sure it has not already been taken. You can search business directories in several states. You should also search outside of your state, particularly if you plan to sell.
Get an EIN
Your personal and business identities are separated by your employer identification number (EIN). It functions similarly to your company’s social security number (SSN). In other words, it is a one-of-a-kind numerical combination. The government uses it to identify your LLC.
Create an account for your firm
It’s time to register everything once you have your EIN and organization name. The process of registering your company is quite simple, though merchants are in particular categories. Depending on your niche and area, you may also need to obtain a company license.
Set up a bank account
Keeping personal and corporate expenses separate is easy. Separating these accounts also ensures that your personal assets are more protected. To open a company bank account, you will need your company’s information, including your EIN.
Create and launch a website
You can launch and market your online store once you are ready to share your new firm with the world.
Do you need an LLC for Shopify?
It is not necessary to form a Limited Liability Company to manage a Shopify store; you can do it as a sole owner. To set up all of the legal details of a Shopify store, you often only need an SSN or SIN. However, It’s never a bad idea to form a limited liability company. Many ordinary Shopify businesses misjudge the potential consequences of a lawsuit.
However, it is somewhat dependent on the type of product you offer. If you sell high-priced electronics with a lot of potential for failure (battery leaking, overheating, etc.), you can have an LLC for it. Simply because it is a higher-risk product. If you are selling little items like necklaces or t-shirts, an LLC may not be necessary. If your budget allows, you should form a Limited Liability Company. But if you’d rather start small, spend in marketing and other aspects of your business first, and then form an LLC later.
For your e-commerce firm, forming a Limited Liability Company unlocks financial and even mental benefits. You can focus on the crucial aspects of your business, and bring it where you want to go, once you have formed your LLC.
Depending on your circumstances, having an LLC might help you save money on taxes. In some situations, you may be able to reduce your tax liability. It is always a good idea to seek advice from a registered tax professional.
Planning On Starting Dropshipping Business?
If you are planning on starting a dropshipping business or trying to scale your current dropshipping/ecommerce business, I highly recommend you take a proper course. There are many people out there who end up losing a lot of money because they try to do things themselves or just rely on youtube’s free information.
Now, that being said everyone seems to claim to be a guru nowadays so, it is harder to find quality courses to try. I personally recommend you try out eCom Elites, I have reviewed over 50 courses on my blog here and not one comes close to eCom Elites. The part which is insane is that it’s not your average guru course which is priced thousands of dollars with very little content.
It is by far one of the most affordable courses with the most amount of information you can buy on the market. You can read my review on eCom Elites here.