Do you need a license to dropship? It's a question that many entrepreneurs ask when starting their business. The answer is yes, eventually. Most cities require business licenses for dropshipping companies, but the requirements can vary from state to state. Technically, you don't need a business license to start selling or dropshipping on Shopify.
All you need to do is log in, create an account, upload your bank account information and your social security number and you're ready to go. However, if you don't pay taxes on your dropshipping earnings, you're breaking the law. Misrepresenting an authentic item is also illegal and not worth the risk. It's important to understand that different countries have different requirements and laws for permits and licenses for direct shipping and online sales.
To get started with dropshipping, you'll need to understand what seller permits and licenses your online business might need. In addition, when you buy products for resale, you'll probably have to present your resale license to your dropshipping supplier so that they can allow a tax-free sale. This brings us to the second reason why you should obtain a business license before continuing with the launch of your dropshipping site: it will establish your dropshipping business as legitimate and legal. If 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.
Although Shopify doesn't require you to obtain such a license to use the dropshipping platform, it's recommended that you get one. However, there are some cases where you might be able to get away with drop shipping without a business license.
Leave a Comment