Do You Need to Register a Dropshipping Business?

Something that you should really consider is what business structure that you would like to operate under. For instance, those who are operating as sole traders have few registration requirements. They also have the easiest tax forms to complete. However, some businesses are large and require additional protection. For this, you might want to register your business as a Limited Liability Company (LLC). These companies are afforded better protection to the personal assets of the owner.

However, there is no legal requirement for the LLC. It is a personal choice. When you’re starting out you might want to try out the business first and see if there is any chance of success. Shopify gives you a 14-day trial and most stores make their first sale within two weeks to two months.

And some areas, like in the UK, allow you to delay your registration for three months after you’ve earned your first sale. Therefore, in some territories, you can establish your company, brand it and build it up and then start the registration period after the sales have started to come through.

In some areas, revenues under a certain amount are also not included. So if your business makes a couple of sales, but is not a complete success, then you can close it down without having to register it. This is harder if you’re an LLC as there is a lot of paperwork involved.