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Written by : Dominick Mysliwiec
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hi everyone welcome to popupsmart's youtube channel today i'll answer one simple question do you need a limited liability company or llc for shopify the short answer is no you don't but having it might be a great idea since it provides an extra layer of liability protection for example if you're selling high risk products such as electronics devices it might be a good thing to do since there is a lot that can go wrong but if you're selling low-risk products like t-shirts or keychains it might not be as important don't forget to check out the link in the description box below and see you next time
Thanks for your comment Theron Dunsing, have a nice day.
- Dominick Mysliwiec, Staff Member
hey welcome back into another video i hope your day is going extremely well so far today we are going to be talking about when you should open an llc or any sort of legal entity for an e-commerce business this could be a drop shipping store it could be non-drop shipping on shopify wix amazon literally any sort of online business and it could be even like a service a software whatever here's my philosophy when you're starting okay your first business this is very different if you already have a successful company and you're starting something else that relates to it and you're very confident that you can get it off the ground quickly okay if you're started i don't think it makes sense and by the way this is all in my opinion consult professional advice this is just my opinion okay based on my experience you can run a business as a sole prop right a sole proprietor everything can be under you personally you don't even need a dba which means doing business ads technically everything can be under you personally tied to your social security obviously this is not ideal when you have a legitimate company because if there's a lawsuit for an example they can come after your personal assets now you might be like oh well i'm 19 or i'm 34 i'm just starting a business i don't have anything okay well you know that's not really the point the point is to protect yourself long term but there's also many tax advantages to different legal structures that's not exactly what i'm here to talk about today but here's my philosophy starting for an example in llc a limited liability corporation it's the easiest thing to do but it takes two things okay a couple hundred bucks depending on where you are and this is for people in the us by the way a couple hundred bucks and it takes your time you have to think about it you have to set it up you have to apply for it you're gonna have to pick at least three names in case one isn't available you have to do all these things and i don't think in my opinion it makes sense to do that until you have an e-commerce business that is making consistent sales and here's why on this channel we talk a lot about little tips on facebook ads how to optimize your website how to find the right products a lot of stupid mistakes that i've made over the years but all those things ultimately lead into your experience and with e-commerce it might not be your first store that is your winner it might not be the first product and in fact e-commerce might not even be the thing for you and that's not a bad thing a lot of people try it and for whatever reason it's not for them or they don't want to stick with it you know i really push to make sure that everybody watches the content here sticks with it because it does work and it's no more difficult than anything else so you know people tend to jump around looking for the easy thing but there is no easy thing so stick with one thing but you shouldn't do that llc thing and open up even if it's you know an llc filing as an s corp which is some of my corporations and how we structure the tax filings you shouldn't do that until something's established and you're confident that you're going to be doing this long term now this could be a 30-day period because in 30 days you could have 10 sales a day coming in you're like okay this is starting to work a couple dollars is coming in let's uh let's take some of that first profit and just open an llc and then you can use that llc for anything in the future that is just my recommendation to you i would love to open up the comment section right now any questions you have about e-commerce i try to usually stay away from the tax and business formation side of things just because that's you know it can get me into some legal troubles that's why i say this is all an opinion but uh you know it's just it's it's different for every situation it's different based on where you live it's different based on the the income that your business is producing but again i would just recommend going slow making sure it's something that's gonna work long term and then you can easily just pay a business attorney or a cpa a hundred dollars like 75 dollars for an hour of their time and you just ask every question that you have that's what i did okay so and just to give you a point of reference i don't really like talk numbers unless it's a learning experience i always try to make that very clear um for me just from a learning experience perspective here i didn't talk to a cpa and pay for like i think it was a hundred dollars for an hour of someone's time i was already doing like 25 000 a month so like there was money coming in and i wanted to then figure out how to structure it i knew it was coming in consistently and it was growing every single month so that's why i went ahead and you know just sat down with someone for an hour and is only 100 bucks so that's my advice to you um one thing you can do right now if you're new to the ecommerce space i would highly recommend you check out our eight-step checklist it's absolutely free no gimmicks no games you can check it out link down below as well as if you're ready to fully dive in and you really want to get an e-commerce business working you can go ahead and check out our facebook ad program we're not talking about google we're not talking about and showing live how to build a shopify store and all that stuff this is just facebook ads it is the single most crucial component to an e-commerce business that wants to market through facebook this is you know 100 of the marketing we talk about ad copy we talk about finding products we go through the entire scope of facebook which is directly how personally i've been able to generate tens of millions of dollars in sales and now we do the same thing as well for our clients inside of our advertising agency e-com season so a lot of cool stuff inside there you can check out a bunch of other resources linked in the description i hope you enjoyed this video hope it gave you a quick snippet of what to do in terms of the llc and legal tax side of things when you're just getting started now obviously if you're an established business just jump right into that route of consulting with someone who can give you some advice and hopefully point you in the right direction all right hope this video found you well again hope you have a great day be sure to reference some of those resources in the description especially that checklist that's brand new super cool just a simple pdf you can check out all right drop a like down below and i'll be seeing you in the next video peace
Thanks carospillerf your participation is very much appreciated
- Dominick Mysliwiec
About the author
I've studied atomic, molecular, and optical physics at Humphreys University in Stockton and I am an expert in political culture. I usually feel irate. My previous job was court administrator I held this position for 2 years, I love talking about hiking and astronomy. Huge fan of Abraham Lincoln I practice still rings and collect crater critters.
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