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Dropshipping StoreDropshipping LLC: When You Actually Need One
When a drop shipper is late, the FTC says the seller is responsible. The 30-day rule every online store has to follow, what your payment account checks, where an LLC fits, and the key Bizee screens, start to finish.
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Why an LLC for this business
You're the seller
FTC: whoever takes the order answers for it, not the drop shipper
The payment account
Shopify Payments: name and EIN must match your IRS paperwork exactly
The 30-day rule
Ship when promised, or within 30 days. If not: consent, or a refund
How to start it, in order
- Pick your products and place a test order with the supplier yourself: the FTC suggests test orders to check a partner's timing.
- Form the LLC before you open your payment account.
- Get a seller's permit if your state taxes sales. In California both wholesalers and retailers apply, and it's free.
- Open the store and Shopify Payments under the business: the name and EIN must match your IRS paperwork exactly.
- Post shipping times you can keep. With no stated time, you need a reasonable basis to ship within 30 days.
- If an order can't ship on time, ask the customer to agree to the delay, or refund without being asked.
- Report your income whether or not a Form 1099-K arrives.
Every fact in this guide was checked against a primary source before the video was made.
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