Do You Need to Register a Dropshipping Business?
Shopify - Pay Only $1 /Pm For 3 Months   Free Trial
Detect Shopify Theme

Or go to our Shopify Theme Detector directly

Do You Need to Register a Dropshipping Business?

Last modified: December 27, 2021

Do You Need to Register a Dropshipping Business?
Shopify free trial

Do you need to register a dropshipping business? This is a tough question that many people answer when they’re starting a new Shopify dropshipping business. And it can have more to do with the personal preference of the business owner rather than the legal requirement.

Recommended: 24 Best Shopify Dropshipping Apps [Sep, 2023]
# Name Image
Shopify
Get a Free Custom Shopify Store
1
AutoDS
AutoDS
2
Spocket-World Wide Suppliers
Spocket-World Wide Suppliers
3
Syncee - Global Dropshipping
Syncee - Global Dropshipping
4
Printful-Sell Printed and Embroidered Items
Printful-Sell Printed and Embroidered Items
5
Sup Dropshipping
Sup Dropshipping
6
DSers-AliExpress Dropshipping
DSers-AliExpress Dropshipping
7
Zendrop - Dropshipping & POD
Zendrop - Dropshipping & POD
8
Dropshipman: Dropshipping & POD
Dropshipman: Dropshipping & POD
9
AO - AliExpress Dropshipping by FireApps
AO - AliExpress Dropshipping by FireApps
10
Trendsi - Fashion Dropshipping
Trendsi - Fashion Dropshipping
11
CJdropshipping
CJdropshipping
12
DropCommerce
DropCommerce
13
Modalyst-Sell Brand Name Products
Modalyst-Sell Brand Name Products
14
Ali Orders-Fulfill Orders Easily
Ali Orders-Fulfill Orders Easily
15
Blanka - Private Label Beauty
Blanka - Private Label Beauty
16
Dropified-Automate Your Dropshipping Business
Dropified-Automate Your Dropshipping Business
17
ProductPro
ProductPro
18
Spreadr App
Spreadr App
19
Importify
Importify
20
Inventory Source
Inventory Source
21
Roxie
Roxie
22
Fulfillbot: Dropshipping Agent
Fulfillbot: Dropshipping Agent
23
KakaClo
KakaClo
24
Oberlo-Get the Best Produtcts for Your Site
Oberlo-Get the Best Produtcts for Your Site
Show More

What are the Legal Responsibilities?

When you start running a new Shopify business, you can start thinking about the registration of that business. In some cases, and some countries/states, you might need to tell the local or national government responsible for tax that you’ve started a new business. If you’ve not been in business before, some will register you as a new business and issue you with ways to calculate and report earnings for tax purposes.

You might also need to register your dropshipping business if you sell internationally or you sell within certain areas because the government wants to keep records on who is trading. Though this is rather dependent on the local laws and you should contact your local Government business advice line to check with them.

Corporate Structure

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.

Keep Reading

Final Word: Do You Need to Register a Dropshipping Business?

Do you need to register as a dropshipping business? There is nothing different about running a dropshipping business than any other. You don’t need to register the business unless you’re acting as a self-employed person and this can be easy to do as you just contact your local tax office. If your business becomes successful, you might want to create an LLC, but speak to your local tax accountant before taking that step.

Got Something To Say?

Your email address will not be published. Required fields are marked *