Category: LLC

The Complete Guide for American and International Entrepreneurs

There is incredible potential and increased scrutiny, verification, and compliance procedures for selling on Amazon in 2025.

For both domestically located sellers and foreign entrepreneurs, there is one challenge that is common across the board: finding a reliable and verifiable physical address for Amazon Business.

If you’re launching a new brand, managing fulfillment logistics, or just trying to comply with Amazon’s terms of service, having a legitimate business address is essential.

In this 2025 focus guide, we will outline the reasons behind physical address for Amazon sellers, what types of addresses are applicable, deftly navigate through how both US and Forte and Non US sellers can legally obtain what step-by-step in 2025

Why do amazon seller’s need physical address

As with many other online retailers, palavraram, Amazon has its own validated reasons why sellers should provide a physical business address and some of the reasons are:

1. Account Verification and Trust

Amazon may ask you to verify your address by submitting documents such as utility bills, lease agreements, or amenities like counters. A verifiable address lowers chances of account suspension or delays during the onboarding process.

2. Brand Transparency Regulations

In securing trust as a seller on Amazon, your business address appears publicly on your profile. Having an address that is valid, professional, and visually appealing boosts buyer confidence and business credibility.

3. Return Policies and Customer Service

For FBM orders, Amazon mandates that you either provide a U.S. return address or offer complimentary return shipping. Lack of adequate return solutions may invite account warnings or deactivation.

4. Amazon Brand Registry

The tools that come with registering your trademark and brand on Amazon are powerful, including A+ Content, brand analytics, and counterfeit protection. However, one of the core requirements is maintaining a U.S. address for brand correspondence or verification letters.

5. Opening a U.S. Bank Account and EIN

Applying for U.S. Bank Accounts and EINs often need a physical address, avoiding P.O. Boxes or virtual mailboxes. Having a physical recognized business address increases your chances of application approval.

6. Tax and Legal Correspondence

Forming a U.S. LLC or corporation requires having a legal address to receive government notifications, tax documents, and official mail.

What is Considered a Physical Address on Amazon

Amazon’s seller policies state that a physical address:

• Cannot be a P.O. Box.
• Is tied to a house, business, or office.
• Can be validated using utility bills, lease contracts, or mail.
• Is aligned with the business documents and Seller Central account.
• Is unique and does not overlap with accounts from other Amazon sellers.

Some sellers make the mistake of using mailbox numbers or registered agent addresses that are flagged as non-compliant. Avoid suite type numbers that imply virtual call boxes (like PMB #123 or Box #456) unless you’re certain they clear Amazon’s verification processes.

What Types of Addresses Can Sellers Use To Register with Amazon

Let us look at the most common and acceptable types of addresses:

1. Home or Office Address (Personal or Business)

This works best for sellers located in the U.S. who work from a home office or a commercial building.

Pros:

• No cost and straightforward to handle
• Integrates seamlessly with Amazon confirmation
• Works perfectly for those with utility bills and lease agreements

Cons:

• Reveals your private address to the public via Amazon
• Might not be ideal for return management
• Not available for international sellers

2. Virtual Business Address (for International Sellers)

Virtual addresses are genuine street addresses associated with mail centers that collect and send your mail either physically or electronically. These are especially beneficial for foreign residents establishing a US LLC or selling on Amazon.com.

Pros:

• Starting at $10 a month, very cost-effective
• Accessible in major cities like New York, Miami, or Dallas
• Offers mail scanning, forwarding, and proof of address services
• Acceptable for EIN, LLC, and Amazon accounts

Cons:

• Not all of them are accepted by banks or Amazon, consult the list carefully
• Do not work for physical visit or warehouse use

Pro tip: Be sure the provider uses an actual commercial address and not a mailbox store like UPS Store, which may result in rejection by Amazon.

3. Coworking Space or Shared Office Address

Having a professional business address that provides meeting room use and reception services can be obtained from shared workspaces like WeWork, Regus, Industrious, and LocalWorks.

Pros:

• Builds strong trust with customers
• Accepted by banks, IRS, and Amazon
• Offers real mail handling with physical access

Cons:

• Costly, starting at $50-$100 per month.
• Not useful if you don’t require an office.

4. Registered Agent Address

When establishing a U.S. LLC, a registered agent is necessary. This address should only be used for legal purposes in receiving documents and not for business operations or Amazon verification.

Pros:

• Required for legal formation of the company
• Provided by LLC service providers like Bizstartz

Cons:

• Amazon registered agent addresses are a big no no.
• Does not work for mail forwarding or returned items.

5. Fulfillment Center or 3PL Address

For Amazon FBA users, Amazon takes care of returns and storage. For FBM sellers, you can collaborate with a 3PL that provides a US based warehouse for returned items and inventory storage.

Pros:

• Excellent customer support for returns and shipping.
• Business tools and systems are already set up.
• Enhances client engagement.

Cons:

• Does not support tax or legal operations.
• Not always accepted for Amazon account creation.

How International Sellers Can Obtain a U.S. Physical Address in 2025

Step 1: Form a U.S. LLC

Select a state like Wyoming, Delaware, or Florida to incorporate your business. This establishes a legal presence for your company and opens up banking options as well as Amazon registration and EIN filing.

• Recommended For: Entrepreneurs and digital nomads who aren’t residents, and eCommerce sellers.
• Platforms That Help: Bizstartz, Stripe Atlas, LegalZoom

Step 2: Subscribe to a Virtual Address Service

Choose a trustworthy virtual address provider that meets the following criteria:

• Has a genuine commercial street address.
• Can issue proof of address documents.
• Offers mail scanning and forwarding.

Top Providers in 2025:

Provider	Features	Cost (Monthly)	Notes
Anytime Mailbox	1,200+ U.S. cities	From $10	Amazon-friendly, digital dashboard
iPostal1	Mail, return address	From $9.99	Accepts small packages
Earth Class Mail	Premium scanning & OCR	From $19	High-volume businesses
Regus Virtual Office	Office access + address	From $49	Professional branding

Step 3: Use the Address on All Documents

Maintain uniformity across:

• Amazon Seller Central
• EIN (IRS form SS-4)
• LLC Formation documents
• Banking applications
• Trademark/Brand Registry

Inconsistent addresses raise suspicion and may cause delays in account approval or tax submissions.

Step 4: Set Up Return Logistics

For FBM sellers, Amazon mandates a U.S. return address. Options include:

• Let Amazon FBA manage your storage and handle returns.
• Team up with a 3PL or reverse logistics provider based in the U.S.
• Enroll in Amazon’s return label program for international sellers and pay for shipping.

Step 5: Confirm Address Verification Process with Amazon

Verification might include:

• Sending a postcard with a designated code for address verification.
• Submission of utility bills or leasing agreements.
• Notarized documents for verification.

Make sure verification documents can provide sufficinet proof of occupancy or utility documents.

Common Mistakes to Avoid

❌ Using a P.O. Box or PMB address

❌ Registered agent address listed on Seller Central

❌ Address shared among hundreds of active Amazon sellers.

❌ Not updating legal and business documents for the current business address.

❌ Return handling neglect,  disengage impacts the brand’s reputation.

Final Thoughts: Address Establishes Trust and Legal Compliance

In 2025 the policies for sellers on Amazon are strict and heavily automated. A legitimate, professional, and verifiable U.S. address requirement is non-negotiable.

If you’re introducing your first product to the U.S. market or expanding with a second brand, the right business address will:

• Boost customer confidence
• Ensure smooth verification process
• Maintain a good standing account

Ready to Get Started?

With Bizstartz, we assist global entrepreneurs in starting U.S. businesses by providing all the essentials:

✅ Form an LLC in the USA

✅ Get a virtual business address in major cities

✅ Get EIN number

✅ Compliant with Amazon requirements

✅ Open a business bank account

✅ Monthly bookkeeping and filing with BOI

👉 Contact us and work with our professionals so you can confidently launch your U.S. Amazon business.

Florida is one of the shining states in the U.S to establish a Limited Liability Company (LLC).

The absence of state tax, minimal costs and great business infrastructure makes Florida an appealing choice for local and foreign investors.

This guide will provide you with detailed information to form an LLC in Florida, covering everything from naming your business to filing taxes which require annual compliance.

This guide can be useful for individual entrepreneurs, foreign business investors or for anyone looking to start a multi member company.

What Is an LLC?

An LLC, also known as Limited Liability Company, is a type of business structure that is legally recognized as one in the U.S which provides the owners, or members, with limited liability protection while also being easy to run and offer them tax advantages.

They tend to be popular because they incorporate the beneficial factors of Corporations and Sole proprietorships without being excessively regulated.

Key Features of an LLC:

• Limited Liability: Members do not need to share the burden of company debts or any lawsuits associated with the company.
• Pass-through taxation: Members will report profits and losses which can be directly passed on and included on personal tax filings unless corporation tax applies.
• Flexible ownership: LLCs can have one or multiple members and these members can be either individuals or businesses.
• Simple Compliance: Lower levels of formality along with lesser administrative burdens than those of corporations.

In Florida, LLCs are regulated under Chapter 605 of Florida’s Revised Limited Liability Company Act.

Why Form an LLC in Florida?

Your choice of a state to form an LLC is vital, and Florida certainly is one of the most welcoming states for entrepreneurs in America. Here’s why:

1. No State Income Tax

Florida stands out as one of the few states where personal income tax does not exist. This serves as a major advantage for single-member LLCs and partnerships, since income usually passes through to members.

2. Business-Friendly Climate

Florida performs well on studies evaluating a state’s business climate for reasons including:

• Low regulatory burden
• Routine filings are handled efficiently.
• Pro-business legal framework

3. Affordable Startup & Maintenance Costs

• Compared to New York and California, Florida has more affordable filing fees.
• Recurring report fees are reasonable and can be completed through an online portal.

4. Ideal for Foreign-Owned Businesses

For non-U.S. residents, Florida is easy to access:

• Lacks a residency or citizenship requirement
• EIN for foreigners is easy to apply for
• An international business hub, Miami has plenty!

5. Thriving Economy

As the 4th largest economy in the US, Florida leads in tourism, logistics, eCommerce, healthcare, real estate, and finance.

Step-by-Step Guide: Forming an LLC in Florida

Let’s dive into each step:

Step 1: Choose a Name for Your Florida LLC

The name of your business is the most important part of your brand. In the state of Florida, it must adhere to certain legal requirements.

Legal Requirements:

• Must contain “Limited Liability Company” or its abbreviations “LLC”, “L.L.C.” and others.
• Cannot suggest a partnership with government offices like the FBI, Treasury, and others.
• Restricted terms such as “bank,” “attorney,” or “insurance” require proper licensing to be used.

Name Availability:

Check desired name availability with the official Sunbiz name search tool.

💡 Tip: If you are not prepared to file, you can reserve your business name for up to 120 days by submitting a name reservation request.

Step 2: Appoint a Registered Agent in Florida

A Registered Agent can be an individual or business entity who will receive legal documents, tax notices, and other official mail on behalf of your LLC.

Florida Requirements:

• Must Be Located in Florida With a Physical Address (Not P.O Box Address)
• Must be available during normal business hours.
• Can be a member of the LLC, an employee, or a third-party service.

If you’re not physically located in Florida, it’s best to hire a professional registered agent service, which typically costs around $49–$150/year.

✅ Tip: Bizstartz offers Registered Agent services for non-residents and remote entrepreneurs.

Step 3: File Articles of Organization

This is the official document that created your LLC in Florida which can be filed online or by mail.

Information Needed:

• LLC name and principal office address
• Registered Agent’s: Name and Address
• Filer’s Name and Address
• Optional: Effective date and LLC duration
• Authorized representative’s signature.

Filing Options:

• Online Filing (Recommended): Sunbiz E-File Portal
• Mail Filing: Download and send to Division of Corporations, P.O. Box 6327, Tallahassee, FL 32314

Fees:

• $100 for Articles of Organization
• $25 for Registered Agent designation
• Total: $125

⏱ Processing Time:

• Online: 1–2 business days
• Mail: 5–10 business days

Step 4: Create an LLC Operating Agreement

Though not required by the state, an Operating Agreement is strongly recommended.

What It Includes:

• Equity ownership
• Member roles and responsibilities
• Voting rights and decision-making powers
• Distribution of profit and loss and financial indicators
• Processes to add or remove members
• Process of dissolution

Florida’s default Operating Agreement laws would give your business a set structure which might not be the most efficient for your corporation. Having a pre-agreed operating document outlines the terms strengthens liability protection.

Step 5: Get an EIN from the IRS

An EIN (Employer Identification Number) is like a Social Security Number for your business. It’s needed to:

• Open a U.S. business bank account
  
• File federal taxes
  
• Hire employees
  
• Apply for business licenses

Apply:

• U.S Citizens/Residents: Apply online instantly at IRS EIN Assistant.
• Non-Residents (No SSN): Via fax or mail Form SS-4. A U.S. phone number is helpful but not mandatory.

✅ Tip: Foreigners seeking support with applying for an EIN are assisted at bizstartz.

Step 6: Obtain Required Licenses & Permits

Operating legally may require obtaining certain licenses on a local, state, or even federal level.

Florida Business Licenses:

• Local Business Tax Receipt (city/county)
• Sales Tax Permit from Florida Department of Revenue
• Permits for health-related services (CPR Training).
• Professional licenses (real estate, law, medicine, etc.)

Visit the website to get more information and relevant Florida-specific data: floridabusiness.org

Step 7: Open a U.S. Business Bank Account

Segregating your financial records and documents is very crucial in business for the following reasons:

• Achieving personal liability protection
• Correct accounting and tax reporting
• Establishing business credit history

Required documents include:

• Approved Articles of Organization
• EIN letter from IRS
• Operating Agreement if multi member
• Valid ID (passport or U.S. ID)

You can open an account with:

• Traditional banks like Bank of America, Chase, or Wells Fargo
• Online banks like Mercury, Relay, or Bluevine

Foreigners: Some banks require a US presence or in person visit. Bank options that are remote friendly are offered by Bizstartz.

Florida LLC after formation

Set up ongoing obligations to ensure that the entity remains in good standing.

1. Annual report submission

Each Florida LLC is mandated to submit an Annual Report detailing the changes that have taken place within the business.

• Due Date: Every year from January 1 to May 1
• Fee: $138.75
• Late Fee: $400 (after May 1)
• File Online: Sunbiz Annual Report Portal

Reports must be filed regardless of whether there are any changes to the business.

2. Federal and State Taxes

Federal Taxes:

• Single-member LLCs, taxed as sole proprietors under Form 1040 Schedule C.
• Multi-member LLCs, taxed as partnerships under Form 1065.
• Optionally taxed as S-corp or C-corp for tax optimization.

Florida State Taxes:

• No personal income tax.
• Sales Tax (6%) applicable to retail or eCommerce shops.
• Reemployment tax applicable if you have employees.

Withholding obligations necessitate registration with the Florida Department of Revenue for LLCs that collect sales tax and have payroll obligations.

3. Renewal of Business Licenses

Maintain city, county, and specific industry licenses. Local licenses usually need to be renewed every year. Proof of tax compliance may be required when renewing the license.

Costs Breakdown: How Much Does It Cost to Start a Florida LLC?

Item	Cost
Articles of Organization	$125
Registered Agent (optional)	$49–$150/year
Operating Agreement (DIY or paid)	Free–$150
EIN from IRS	Free
Annual Report (from 2nd year)	$138.75
Business Licenses	Varies by industry and location

💡 Estimated startup cost: $125–$300+ depending on services used.

Can Non-U.S. Residents Create an LLC in Florida?

Of course! Florida allows non-residents to have full ownership and control of an LLC. You do not need to be a U.S. citizen or reside in the country.

What You Need to Have

• Registered Agent in Florida
• Business address for the LLC (can be virtual)
• EIN (can be obtained without SSN)
• Bank account in the USA (some options don’t require you to visit)

✅ Here at Bizstartz, we aid non-residents in forming Florida LLCs and open American bank accounts without having to visit the country.

Ready to Set Up a Florida LLC?

Here at Bizstartz, starting a Florida LLC is easy and stress free. We provide the following services:

• Check business name availability
• Filing of Articles of Organization
• Issuance of EIN for residents and non-residents
• Providing Registered Agent services
• Drafting of Operating Agreements
• Opening of business bank account in the US
• BOI (Beneficial Ownership Information) compliance

📲 Begin today at bizstartz.com

🎯 Claim your free consultation and layout your LLC formation strategy with us.

Concluding Remarks

Setting up an LLC in Florida gives you legal protections as well as tax and operational flexibilities. It is ideal whether you are running a local business, handling remote clients, or even establishing a global eCommerce brand.

From anywhere in the world, you can set up your U.S. presence in under a week with the proper tools and guidance.

Let Bizstartz assist you in starting your Florida LLC and expanding your business internationally.

By doing away with the need to keep stock on hand, inventory management removes a major challenge from the dropshipping model. Because of this, it has become increasingly popular among college students, digital nomads, and just about anyone wishing to operate a global business with minimal investment.

Studies suggest that many new entrepreneurs make mistakes, especially when their business involves an international element, or when they operate through a U.S.-based LLC. While setting up a store is easy, taxes tend to trip people up.

In this post, we’ll discuss all the things concerning taxes for dropshipping business owner, whether he is based in the US or overseas, needs to know.

📌 Table of Contents

1. From Defining Dropshipping to Understanding Tax Responsibilities
2. Understanding the Types of Taxes in Dropshipping
3. Step-by-Step Guide to Filing Your Dropshipping Taxes
4. Exemption of Sales Tax as a Dropshipper
5. Other Special Tax Considerations for Non-U.S. Residents with a U.S. LLC
6. Tax Mistakes E-Commerce Sellers Make Too Often
7. Tools and Resources to Help Reduce The Stress of Filing Taxes

1. What Is Dropshipping and Who Needs to File Taxes?

Dropshipping is a method that enables sellers to fulfill orders without having to maintain stock on hand. Rather than holding inventory, the seller obtains the items from a supplier or manufacturer who ships the products directly to the buyer.

You have to manage the website, do marketing, and handle customer service, but you won’t need to oversee storage, packing, or shipping.

✅ Who Needs to File Taxes?

If there is income brought in from a dropshipping business, taxes will need to be filed in some form regardless of:

• Your business status
• Your location
• Customer location

Here’s who needs to file:

• American citizens and residents who show any business activity.
• Foreign owners of a U.S. LLC corporation.
• Partnerships that Include U.S. or foreign members.
• Individuals exceeding the IRS filing minimum which differs from state to state.

👉 Bottom line: Payments are being processed from customers? There’s a high possibility something needs to be filed, even if its not owing taxes at that point.

2. Different Tax Types That Can Be Used Within Dropshipping

While there is no specific tax for dropshipping, several different taxes could be imposed on the business determined by its structure, location, and clients.

🧾 a) Federal Income Tax (US IRS)

With this taxes comes no additional charges to the government so long as the profits are being made and subsequently filed under. This tax is purely pay as you go. In addition, if sole proprietors want to claim back any funds can be done through Schedule C.

• Single-member LLCs are automatically classified as disregarded entities for tax purposes unless they opt for corporate taxation.
• Partnerships issue K-1 forms to partners and file Form 1065.
• C Corporations and S Corporations are also issued business returns and may incur taxes on the corporate level.

💸 b) State Income Tax (If Applicable)

Based on the formation location of your LLC or other nexus of economic presence, you may owe state income tax return filings.

Popular states for LLC registrations such as Texas, Wyoming, and Florida have no state income tax.

🏷️ c) Sales Tax

This is a transaction based tax and is not charged on your income. However, you are mandated to collect and remit this tax to the state where you established sales tax nexus.

The same goes for dropshipping and is often complicated by the fact that nexus can be triggered in different ways (more on this in Section 4).

🌐 d) Obligations of International Taxation

As a foreign non-resident holding an American LLC, your tax obligations may include:

• Filing U.S. tax forms even if tax liability is not present
• Satisfying tax obligations in your home country, exempting U.S. taxes
• Filing Form 5472 and 1120 each year to meet U.S. compliance requirements

3. Comprehensive Instruction on Filing Taxes for Your Dropshipping Business

✅ Step 1: Selecting Appropriate Business Structure

Choosing your business structure determines how you will report the income and taxes for your business.

• Sole Proprietor: Easiest but least legally protected.
• LLC: Offers legal protection and flexible tax treatment.
• Corporation: May offer tax savings at scale but involves more complexity.

An LLC remains the most preferred option among dropshippers and non-residents due to its simplicity and tax efficiency.

✅ Step 2: Apply for an EIN

An LLC must acquire an EIN to open a business bank account, hire contractors or employees, and manage tax filings.

You can apply online via the IRS website, or have a formation company like Bizstartz take care of it for you.

✅ Step 3: Record All Income and Expenses

Maintain accurate record for:

• Total gross sales
• Shipping and product costs
• Refunds and chargeback transactions
• Ad Spend on Social Media and Google
• Meta, Google, and Tik Tok advertising spend
• Hosting and app payment for the website
• Payments to contractors or virtual assistants

Cloud accounting solutions like the following can help you:

• QuickBooks Online
• Wave
• Xero
• Bench (specialized bookkeeping services, done-for-you bookkeeping)

✅ Step 4: Put Bound Taxes Aside

Expected bound tax for business is $1000 or more, IRS holds businesses to a rough estimate bound tax which needs to be paid quarterly. Due dates wearing as follows:

• April 15
• June 15
• September 15
• January 15 of the next year

Based on the tax bracket, and business structure estimate should be between 20-30% of net income.

✅ Step 5: Submit Tax Returns

Tax return that needs to be filled:

• Schedule C (Form 1040): sole proprietors and single-member LLCs
• Form 1120: owned foreign LLCs and corporations issue
• Form 5472: issued by meet foreign owned single member LLCs
• Form 1065: multi member LLC’s (partnerships) fill this.

State Returns (if applicable):

Depends on where your business is registered or has nexus.

✅ Step 6: File Sales Tax Returns (Monthly, Quarterly, or Annually)

The task includes:

• Permits for sales tax registered for active states
• Merchants selling on Shopify or Amazon must enforce tax collection at checkout.
• The administering policies are to be followed with tax filing and payment.

4. Sales tax as a dropshipper: Navigating

What is sales tax nexus?

It is defined as the relationship your business has with a particular state that permits sales tax to be remitted or collected with respect to that business activity.

Nexus can be triggered by:

• A business’s presence can be classified as offices, physical premises, warehouses or employees.
• FBA (Fulfilled by Amazon) model of doing business stores your products in Amazon warehouses which also triggers nexus.
• Meeting economic benchmarks that many states set ($100,000 in sales or more than 200 transactions).

Automate Nexus with Sales Tax Tools

• TaxJar: Great for multichannel sellers with auto-filing
• Avalara: Enterprise-level automation
• Quaderno: Useful for international sellers with US LLCs

All aforementioned tools integrate with Shopify, Amazon, WooCommerce, and many other platforms.

Dropshipping Tip

In situations where your supplier takes responsibility for tax collection and remittance for specific jurisdictions, you will be exempt. In most cases, however, as a retailer, tax liability falls upon you.

5. Special Tax Rules for Non-U.S. Residents with a U.S. LLC

Starting a dropshipping business in the US as a non-resident foreigner comes with some tax risks.

🧾 Important Tax Forms You Should File:

• Form 5472 + 1120: Applicable for foreign-owned single-member LLCs
• Form 1040-NR: For those with effectively connected U.S. income
• Form W-8BEN: For bypassing U.S. withholding on Stripe, Amazon, and similar platforms
• State returns: Only for those with physical or economic nexus

🔍 Will You Be Facing Any Tax Liabilities?

With your U.S. LLC, if you have:

• No employees to work for the business in the U.S.
• No operations located within the U.S.
• No sales made to customers in the U.S.

You may not owe taxes, but remain required to file taxes in order to avoid penalties.

6. Resources, Tools, and Tips for Filing with Ease

🧰 Recommended Tools:

• QuickBooks Online: For Accounting
• TaxJar: For Automated Sales Tax
• Gusto: For Payroll and Contractor Payments
• Notion / Airtable: For Tracking Financial Data Internally

📌 Tax Tips:

• Engage a CPA before tax season begins, not after
• Keep your receipts and invoices in a digital format (Google Drive or Dropbox)
• Early filing helps avoid penalties
• Start tracking your finances early, do not wait until you are “making money”

🤝 Bonus Tips For Foreign Entrepreneurs:

For U.S. tax compliance, bookkeeping, and accounting use Bizstartz for:

• LLC formation
• EIN applications
• ITIN applications
• BOI filing

Closing Thoughts

Filing taxes for your dropshipping business should not be a daunting task. With the right resources, an appropriate system in place, the right tools, and professional assistance, you can remain compliant and concentrate on growing your store.

No matter where you are selling from, be it Kathmandu, Cairo or California, staying organized, understanding obligations, and filing correct forms on time is the bare minimum.

👇 Need Help Starting or Managing Your Dropshipping Business?

At Bizstartz, we assist entrepreneurs from all over the globe:

• Form U.S. LLCs
• Acquire EINs and ITINs
• Set up U.S. bank accounts
• Tax-compliant bookkeeping and annual filings

Let us handle the backend, and you can focus on selling.

👉 Visit Bizstartz.com or book a consultation today.

📌 Frequently Asked Questions (FAQs)

1. Do I need to pay U.S. taxes if I am a non-resident running a U.S. dropshipping business?

Not always. As a non-resident with a U.S. LLC, you might not owe federal income tax if the business lacks U.S. effectively connected income (ECI). Despite that, IRS Form 5472 and Form 1120 must be filed annually. If the LLC has a U.S. office, employees, or warehouses (like with Amazon FBA), U.S. taxes would likely apply.

2. When is it necessary for me to collect sales tax?

You must collect sales tax if you have sales tax nexus in a state. This can occur when:

• You keep inventory in a state (e.g., through Amazon FBA).
• You have significant sales in the state (usually $100,000+ or 200+ transactions).
• You have employees, offices, or contractors in a state.

Use TaxJar or Avalara to monitor and manage nexus obligations.

3. What are the consequences if I do not submit Form 5472 for my foreign owned LLC?

The consequences of not submitting Form 5472 (with Form 1120) means that the IRS can impose a $25,000 penalty per year. These forms need to be filled out even when there is no profit made, or the person lives outside the United States, meaning there is no business activity in the country.

4. Is it possible to complete my taxes without a professional, or do i need an accountant?

For simple businesses and those who understand the U.S. tax rules, it is possible to file taxes without the help of a professional. However, a CPA or automated services should be considered for the following cases:

• As a non-resident,
• Operating several stores/platforms,
• Have foreign owned LLC forms that are complicated to file.

5. What are effective recordkeeping practices for a dropshipping business?

Recordkeeping for dropshipping businesses is best done using digital tools such as QuickBooks, Xero, or Wave. These platforms allow users to track income, expenses, and store important receipts without much hassle.

Moreover, they enable accounts to be reconciled on a monthly basis which aids in accurate reporting, especially for tax obligations.

Swift and smooth tax filing, devoid of audits or penalties, is only achievable with accurate records.

Starting a business in the U.S. might bring up a lot of legal language and forms. One term that many people are unsure of is DBA or “Doing Business As” which is often encountered alongside LLC, EIN, and Registered Agent.

Knowing how DBAs function can significantly bolster branding and growth opportunities for freelancers launching their first project, international entrepreneurs forming a U.S. LLC, or eCommerce owners planning to scale under different names.

This post will address the questions of what a DBA is, its importance, who qualifies for it, and how to properly set one up.

What is a DBA?

A DBA (Doing Business As) is a name that legally a business can operate under that they can register to use, separate from its legal name.

As an example, imagine your LLC name is Global Vision Holdings LLC, but you want to operate an online store named EcoGear Supplies. In that case, you would file a DBA for the name EcoGear Supplies.

With a DBA, you are allowed to do everything a business owner would do under that brand name, including signing contracts, advertising, receiving payments, and even opening a bank account. This is a way to present your business publicly under an alternate identity without forming a new legal entity.

Other common terms for DBA include:

• Fictitious Business Name
• Assumed Name
• Trade Name

All these names, despite sounding different, mean the same thing: an alias for your business, legally registered.

Remember, a DBA is not a business structure. It does not offer protection from liability or give any tax benefits. A DBA simply gives your business the right to change its name.

Why Would You Need a DBA?

There are strategic, legal, and practical reasons to file for a DBA, especially for US LLC owners and global entrepreneurs managing multiple brands.

1. To Create a More Marketable or Brandable Name

If you are doing business with a name that is lengthy or includes ‘LLC’, it will be hard to market your business. With the help of a DBA, you can now address your audience with a simpler, clean brand name.

Example:

• Registered Name: Northwest Digital Ventures LLC
• DBA: Digital Growth Lab

Having a DBA gives you the opportunity to come up with a name that more closely resonates with your product, service, or target audience.

2. To Create Several Brands Under a Single LLC

As a United States LLC owner, if you have multiple businesses such as a clothing boutique, an Amazon FBA brand, and a software as a service (SaaS) platform, you do not have to create a separate LLC for each one. All of them can be operated using DBAs which will save you a lot on formation and compliance costs.

This is especially helpful for:

• Shopify store owners with multiple niche brands
• Marketing agencies offering various services
• Real estate investors managing multiple properties

3. To Make Sole Proprietorships Look Better

If you are a freelancer or a sole-proprietor (meaning you run a business in your own name), having a DBA makes it easier for you to run a proper business name without needing to create a formal LLC or corporation.

Example:

• Personal Name: Priya Patel
• DBA: Priya’s Web Solutions

This enhances the branding for invoices, websites, business cards, and other marketing materials, thereby improving credibility and professionalism.

4. To Set Up a Business Bank Account in the DBA Name

Many banks in the U.S. will ask for a DBA certificate if the business name appearing on checks and invoices is different from the legal name or LLC name. Filing a DBA ensures that a business bank account can be opened under the name used publicly.

Who Should Consider Getting a DBA?

Not every business needs a DBA. However, some can benefit from it strategically. Here are the types of entrepreneurs and businesses who should consider filing a DBA:

💼 Freelancers and Consultants

For those who provide services like writing, design, IT, or coaching, and want to operate under a name reflecting their business identity, a DBA is appropriate.

🛒 E-Commerce Store Owners

Do you own several online stores or are you a dropshipper operating under one U.S. LLC? DBAs allow you to uniquely brand each store without the need to create new LLCs.

🌍 International Entrepreneurs

A lot of overseas residents register a U.S. LLC with Bizstartz, then operate under a name that’s more appropriate for their target market or niche.

🧾 Agencies and Holding Companies

An agency may manage different sub-brands in various sectors. A holding company may have several smaller branded businesses, each operating its own DBA.

🏠 Real Estate Investors

A single LLC could manage several rental or flipped properties as separate DBAs for easier brand organization or client communication.

Do You Legally Need a DBA?

Determining whether a DBA is required depends on how a business name is intended to be used.

✅ You Need a DBA If:

• As a sole proprietor, you’re using a name other than your legal name.
• As an LLC or corporation, you are operating publicly under a different name from the one registered with your state.
• You’re a reorganizing multiple businesses or trademarked divisions under a single LLC entity.
• As a business, you wish to receive payments or open a bank account in anything other than your legal business name.

❌You Don’t Need a DBA If:

• Your entity is registered and no other name is being publicly used.
• Your registered LLC name is the only branding used across all contracts, websites, and bank accounts.
• Not filing a DBA when required can result in fines or problems with banking, contracts, or customer complaints, so keep your business name usage in compliance.

How to Obtain a DBA

In the United States, obtaining a DBA involves a few steps that vary by state and sometimes within a county. Filing it is a straightforward process that most people can follow.

Here’s an outline of the key steps:

✅ Step 1: Selecting Your DBA Name

As with any name, you should ensure that it:

• Represents your brand successfully.
• Is not misleading (e.g., “LLC” in a DBA for someone not registered as an LLC).
• Is unique and has not been trademarked by others.

✅ Step 2: Conduct Name Availability Search

• Contact your Secretary of State along with the County Clerk’s office. Most states have some form of online access to check business names.

✅ Step 3: Complete Filing the DBA Registration

Processing your DBA registration with the state and county includes submitting:

• A basic form.
• A small fee (between $10-100 USD depending on the state).

The filing is at the county level in states like California, which means you do not submit to the state level.

✅ Step 4: Publish a Notice (If Necessary)

For states like New York, you have to publish a DBA notice in newspapers for a certain number of weeks after filing. This is to notify the public about your business name.

✅ Step 5: Receive Your DBA Certificate

Once it is approved, you will receive the official certificate which you can use to:

• Open a US business bank account
• Register for Stripe or PayPal
• Sign contracts or agreements under the DBA name

At Bizstartz, we handle this entire process for you.

Does a DBA Provide Legal Protection?

No. A DBA does not provide protection to your personal assets.

A DBA is not a legal entity. It is simply a registered name. This means that:

• It doesn’t provide liability protection.
• You won’t be protected in the event of a lawsuit.
• You won’t file separate taxes.
• There’s no new business structure created.

While operating as a sole proprietor under a DBA, if the business is sued, the business owner’s personal assets will still be vulnerable.

Most entrepreneurs first form an LLC to gain protection, then file DBAs under it if they want to operate under different names.

DBA vs LLC: What’s the Difference?

Feature	DBA	LLC
Legal Entity	❌ No	✅ Yes
Liability Protection	❌ No	✅ Yes
Tax Status	Same as owner	Pass-through or separate entity options
Name Use	Alternate name for existing business	Official business name
Branding	Flexible, multiple names under one LLC	One legal name unless DBAs are filed
Cost	Low	Moderate to High (formation + maintenance)
Complexity	Simple to file	More steps and compliance required

How Bizstartz Assists You With the Correct DBA Filing Process

In case you are an international entrepreneur wanting to operate a business in the United States, the process of filing a DBA (Doing Business As) can be tricky to maneuver because of the many different rules that each state and county has.

At Bizstartz, we make it easy by:

• Assisting you in name selection and checking name availability
• Ensuring filing is done in the correct state or county
• Assisting with required newspaper publications
• Providing a DBA certificate for record and banking needs
• Ensuring legal compliance for US businesses

Whether you are getting a DBA with your new LLC (Limited Liability Company) or you want to register multiple brands under one entity, we are here to support you every step of the way.

Final Thoughts: Should You Get a DBA?

Although registering a DBA offers considerable advantages in terms of branding, presents a more professional image as a freelancer or a global entrepreneur, and offering greater operational flexibility, it should never be mistaken for forming a legal entity.

For those serious about business growth, the first step should be forming an LLC to gain legal protection, then as needed, add DBAs.

Excited To Get Everything Started?

Bizstartz simplifies the entire process of obtaining a U.S. LLC, EIN, bank account, and even a DBA filing for you.

Our dedicated team does all the heavy lifting for you while you spend your time running on your business. Simply reach out to us today.

Starting a dropshipping business in Shopify has become one of the most sought and simplest methods to start an eCommerce business. It’s especially a go for beginners and digital nomads who are looking for low-risk, high-reward side ventures.

The concept is straightforward. You can sell products online without even needing to manage any inventory. However, building a legal online business that can be sustained over time takes much more effort than just setting up a Shopify store. For scaling a business, it is important to set up a U.S. LLC.

Based in the United States or abroad, having a Limited Liability Company (LLC) offers improved payment processing options, better legal protection, tax benefits, and recognition in the eyes of customers and suppliers.

In this guide, we’ll uncover the process in forming an LLC and connecting it with your Shopify store, while explaining its primary importance in dropshipping success.

💡 What is Shopify Dropshipping?

Shopify is an all-in-one eCommerce solution that provides you the option to build an online store without any coding knowledge. At the same time, dropshipping does not require you hold stock for the products you retail – it is a retail fulfillment method.

Instead, when a customer purchases a product, their order is automatically routed to a third-party vendor. The vendor is responsible for shipping the product directly to the customer.

📦 How Shopify Dropshipping Works

• Start with creating a Shopify store.
• You get product listings from suppliers like AliExpress, Spocket, Zendrop and others.
• A customer orders from your site.
• You process the order with the supplier either manually or through an app.
• The supplier ships the product directly to your customer.
• You earn the profit margin between your sale price and the supplier’s price.

🏆 Advantages of Shopify Dropshipping

• No Inventory Costs: You do not have to buy stock in advance or deal with warehouse management.
• Minimal starting capital: A business can be launched with less than $200.
• Can be done from anywhere: The store can be operated from any place in the world.
• Easily adjustable: Products can be added or removed instantly based on market demand.
• Use of apps: DSers, Oberlo (now replaced), AutoDS and other apps can be used to automate order and product imports as well as order fulfillment.

🔒 Benefits of Creating an LLC for Your Shopify Dropshipping Business

Many new dropshippers do not incorporate a company so they can save money in the short term. This is a mistake as it incurs greater expenses down the line. Read on to know how and why Limited Liability Companies (LLC) should be formed at day one:

1. Protection of Assets

An LLC separates your personal assets from the business liabilities. This means that in the unfortunate event that your store is sued (for copyright issues or defective products) your bank accounts and other personal assets will be untouched.

2. Protects Image and Credibility

It is easier for customers to trust a registered business. In addition, suppliers, manufacturers and advertising platforms like Meta and TikTok require business identifiers such as name and EIN (Employer Identification Number).

3. Needed for Banks, Stripe and PayPal

Payment processors like Stripe and PayPal require:

• Approved Business Entity (LLC)
• EIN (business tax ID)
• A bank account in us

Without an LLC it is nearly impossible to get approval and avoiding account suspension due to “risk” factors.

4. Tax Efficiency

Having an LLC lets you choose how you want your business taxed. For instance:

• You can be taxed as a sole proprietor, as a partnership, or elect S-Corp taxation.
• Write off business expenses such as marketing, software, and contractors.
• Reduce U.S. tax liability for non-U.S. residents, if structured correctly.

5. Access to Financial Tools

Having an LLC and EIN enables you to get:

• Business bank accounts (Mercury, Relay, Wise)
• Business credit cards (Divvy, Brex)
• Business loans and capital advances

6. Ideal for Non-U.S. Residents

Owning a U.S. LLC means non-residents can access the U.S. market, the biggest consumer market in the world, while maintaining full control over their Shopify business.

🌍 Can non-U.S. residents form a U.S. LLC for Shopify?

Yes! The majority of Shopify dropshippers using Stripe or PayPal are non-U.S. residents who own U.S. LLCs.

This structure gives non-residents easy access to the U.S. economy, efficient payment systems, and helps establish trust with customers.

Common Use Cases for Non-U.S. Residents:

• Dropshippers from Asian countries (India, Nepal, Pakistan, Philippines) selling to the U.S. or EU.
• Freelancers and agency owners using Shopify as a white-label storefront.
• Digital nomads needing Stripe for international payments.

Requirements:

• No need to be a U.S. citizen or visit the U.S.
• No Social Security Number (SSN) required.
• No ITIN required unless you plan to file personal tax returns.

With help from Bizstartz, you can form a U.S. LLC, get an EIN, and open a U.S. business bank account, all remotely.

🧭 Step-by-Step Guide: Start Shopify Dropshipping with a U.S. LLC

Here’s how to get started:

✅ Step 1: Choose the Right State for Your LLC

You can choose from one of these top three states:

State	Benefits
Wyoming	No state income tax, low fees, strong privacy
New Mexico	No annual reporting, great for anonymity
Delaware	Well-known for business law, but has franchise tax

Use Bizstartz to help you choose the best state based on your situation.

✅ Step 2: Register Your LLC

• Choose a business name
• Provide a U.S. Registered Agent (Bizstartz includes this)
• File the Articles of Organization
• Receive LLC approval (3–7 days in most cases)

✅ Step 3: Apply for an EIN (Tax ID)

You need an EIN for:

• Stripe/PayPal/Shopify Payments
• U.S. bank accounts
• Tax compliance

Bizstartz obtains this for you as part of your LLC formation package.

✅ Step 4: Set Up a US Business Account

Check these banks for dropshippers:

• Mercury: No fees and international access, great for maintaining funds.
• Relay: Designed for eCommerce with multi-user access.
• Wise: Great for multi-currency management.

All can be opened remotely with your LLC and EIN.

✅ Step 5: Create Your Store on Shopify

Choose a domain like: yourbrand.com.

Create your shop’s theme and layout on Shopify.

Install dropshipping apps like:

• DSers for AliExpress.
• Zendrop for U.S. suppliers.
• Spocket for EU and U.S. products.

✅ Step 6: Link Stripe and PayPal to Your Store

With your U.S. LLC, EIN and bank account you can:

• Create a U.S. Stripe account using your LLC details.
• Create PayPal Business Account.
• Enable Shopify Payments if applicable.

✅ Step 7: Start Selling / Selling Online!

Use these to drive traffic and sell:

• Facebook Ads
• TikTok organic + ads
• Influencer shoutouts
• SEO & Content Marketing
• Automated email marketing

💸 Full Cost Breakdown for Starting Shopify Dropshipping with a U.S. LLC

Expense	Estimated Cost
LLC Formation (One-Time)	$100 – $300 (via Bizstartz)
Registered Agent	Included (1st year)
EIN Application	Included with package
Shopify Basic Plan	$29/month
Domain Name	$10 – $15/year
Dropshipping Apps (DSers, etc.)	Free – $49/month
U.S. Business Bank Account	Free (Mercury, Relay)
Stripe/PayPal Setup	Free
Ads Budget	Optional ($100–$500/month)

Total Initial Setup Cost: ~$200 – $500

🚧 Final Thoughts: Should You Get an LLC for Your Shopify Dropshipping Business?

Having an LLC for your business is a must if you are serious about building a business with your Shopify store, particularly when selling to American customers. It makes sense professionally, legally protects you, gives credibilty, payment processing is easier, and provides lasting assurance.

If things go south, you don’t want to deal with back taxes, banned Stripe accounts, and lawsuits. With proper structuring, you can scale and focus on growing your store.

🌎 Want to Open Your Shopify Dropshipping Business and LLC?

At Bizstartz, we provide world wide services to obtain us llc, ein, stripe bank accounts, and stripe within legal bounds and affordably.

👉 Get Started With Your LLC Today at Bizstartz.com

💼 LLC | EIN | Stripe | Bank Account | Virtual Address – Your LLC Details Custom Made

Frequently Asked Questions (FAQs)

1. Do I legally need an LLC to dropship on Shopify?

Not legally, but you’re better off with one. Otherwise, you’re personally liable and might face taxation and payment troubles. You’ll also look unprofessional.

2. Can a Stripe account be opened by non-U.S. residents?

Yes, they can subscribe to a U.S. LLC, obtain an EIN, and open a U.S. bank account. This arrangement is legitimate and often used.

3. Will I owe U.S. taxes as a foreigner?

Typically, foreigners will only be taxed in America on income earned within the country. With the right tax strategy, you might owe little to no taxes. It’s best to talk to a tax expert.

4. What is the time frame for an LLC to be created?

Average 3-7 business days, EIN issuance takes 1-3 weeks. With Bizstartz, this time is cut down thanks to rapid filing.

5. Is it possible to activate Shopify Payments with a U.S. LLC?

Yes, as long as you have a U.S. bank account and business address, you can enable Shopify Payments through Stripe.

6. Is a U.S. address and phone number required?

They are indeed needed. LLC packages from Bizstartz for non-residents include a business address and a virtual phone number.

7. What about the obligation of collecting sales tax?

Shopify provides merchants with tax calculation and collection capabilities. You may need to register for tax in some states for sales made from the U.S., depending on your nexus.

8. Is this legal for foreign individuals?

Foreigners are free to create and run American LLCs, and they do so every single year. It is very popular, and legal, for international entrepreneurs.

In the modern world of business, especially in the global economy, accepting online transactions is crucial. Stripe is one of the most trusted and powerful payment processors in the world, albeit not available in every country. If you live in a country where Stripe isn’t supported, don’t worry, there’s a proven workaround.

By registering a U.S. business (LLC) and a couple of other simple steps, you can gain access to a fully functional U.S. Stripe account without needing to reside or hold U.S. citizenship.

This post covers every single step from forming a U.S. company, obtaining the EIN, setting up a virtual bank, and even configuring your Stripe account from abroad.

🌍 Benefits of Creating A U.S. Stripe Account

Regardless of whether you are an entrepreneur, freelance worker, developer, or a SaaS startup, Stripe is an amazing tool to have, though it is limited to 45 countries.

If you live in places like Nepal, Pakistan, Bangladesh, or Nigeria, gaining complete access to services like Stripe is virtually impossible.

That is the reason why creating a U.S. Stripe account is so beneficial. Here’s why it pays off:

✅ Receive Payments Globally

Stripe accepts all payment methods, including credit cards, Apple Pay, Google Pay, ACH, and more. With a U.S. Stripe account, you can receive payments through almost any channel, particularly USD.

✅ Gain Access to Leading Integrations

Many of the leading platforms such as Shopify, ClickFunnels, Teachable, Gumroad, WooCommerce, and Kajabi require Stripe as a primary or preferred payment processor. Without Stripe, you risk leaving out essential features to optimize revenue from your online business.

✅ Build Reputation and Improve Conversion Rates

Owning a company with a Stripe account based in the U.S enhances reputation with online customers regardless of their location. Payment processors based in the U.S. are viewed as more reliable and professional compared with those in other regions of the world.

✅ Overcome Home Country Restrictions

Quite a number of countries experience issues with receiving online payments due to regulatory restrictions placed on banking. Having a Stripe account provides reliable payment processing systems while bypassing these national hurdles.

What You Need to Create a U.S. Stripe Account

Stripe requires businesses to be legally formed in a supported country. To open a U.S.-based Stripe account, you must present a legitimate U.S. business structure and supporting documentation.

Here’s a complete list of what you’ll need:

Requirement	Description
U.S. LLC (Limited Liability Company)	Register a legal company in a U.S. state like Wyoming, Delaware, or Texas
EIN (Employer Identification Number)	U.S. tax ID issued by the IRS to identify your company
U.S. Business Address	A real or virtual U.S. address for your company registration
U.S. Phone Number	A local U.S. number for verification and customer communication
U.S. Business Bank Account	Used to receive payouts from Stripe
Website or Online Store	A live and operational website representing your business
Valid Government-Issued ID	Can be your passport or national ID from your country
Stripe Account Setup Details	Business description, services, industry, and website links

✅ Tip: All these items can be obtained remotely through a service provider like Bizstartz, which specializes in helping non-residents start U.S. companies and create Stripe accounts.

Step 1: Form a U.S. LLC

First, create an LLC in one of the U.S. states that is open to foreign business owners. Some of the most popular are:

• Wyoming: Low filing fees, strong privacy, and no state tax
• Delaware: Best known for legal protections and loved by tech and startup companies
• Texas: Large economy, great brand value for product-based businesses

To register, you need to have a business name, real (a physical) US address, and registered agent. These processes can be completed by Bizstartz, which does not require you to travel.

Typically, forming an LLC takes 1-2 business days depending on the state.

Step 2: Get Your EIN from the IRS

After registering your LLC, you need to get EIN, which is the Employer Identification Number or Federal ID for your company. It’s similar to a social security number but for businesses.

EIN is issued by IRS for any legal US entity, owners do not necessarily need to be US citizens.

You’ll need the EIN to:

• Register your business with Stripe
• Open a U.S. bank account
• File taxes or tax-exempt paperwork if applicable

Bizstartz can obtain your EIN quickly, even if you don’t have an SSN or ITIN.

🔹 Step 3: Open a U.S. Business Bank Account

Stripe needs a U.S.-based bank account to send your payouts. As a non-resident, your best option is a virtual business banking platform that lets you open an account through the internet.

Top options include:

• Mercury: Supports global founders, FDIC insured, no monthly fees.
• Relay: Free ACH transfers, virtual debit cards, easy to use.
• Wise (formerly TransferWise): Offers a USD account with routing numbers.

Having your LLC and EIN gets you a U.S. bank account within 24 – 72 hours online.

🔹 Step 4: Creating a Business Website

Make sure your website is Synced up before signing up for stripe:

• Up and Running
• Properly showcases your services or products
• Has contact info, terms of service, privacy policy, refund policy, and all other relevant business details.
• Consistent with your LLC/stripe application info.

Stripe will check if your website falls under categories like gambling, adult content, CBD etc. They do not approve of restricted businesses.

🔹 Step 5: Create an Account on Stripe

Go to Stripe’s website and click “Start Now” to register. At this stage your business, banking and other necessary components are ready.

Fill in the following details:

Country: United States

Business Type: LLC (choose single-member or multi-member)

Business Name: Match your registered LLC name

EIN: Enter your tax ID

Bank Info: Input your U.S. bank routing and account numbers

Phone Number: Use your U.S. number

Business Website: Include the full URL

Business Description: State the services accurately

Personal Info: Name, address, passport or national ID

Upon submission, Stripe reviews accounts within 24 to 72 hours, depending on their volume of requests.

Can I Use My Foreign ID or Passport?

Sure! With Stripe, you can verify your identity with a passport, national ID, or driver’s license from your home country. A U.S. ID, visa, or SSN is not required.

Be sure to submit a clear, color, and unexpired photo.

Withdrawal of Funds from Stripe Without a US Address

Stripe sends funds directly to your U.S. bank account like Mercury or Relay. You can then transfer to your local bank in your country using:

• Wise: Quick transfer option with low fees worldwide.
• Payoneer: Works well with freelancers and online marketplaces.
• SWIFT transfers: Traditional bank to bank global wire transfers.

This helps maintain an overseas payment system without needing a local stripe account.

Errors to Avoid as a US Stripe Non-resident

❌ Submitting partial or fake addresses in the US.

❌ No dot com or a half built landing page

❌ No EIN for stripe application

❌ Out of scope businesses for stripe

❌ LLC, Stripe and the business site having different information

Keeping away from these errors increases the chances significantly.

Stripe-Ready Business Solutions From Bizstartz

Gathering all these components is like solving a puzzle with pieces scattered across different time zones, legal frameworks, and documentation needs.

At Bizstartz, it is our passion to assist entrepreneurs from different corners of the globe by helping them establish a business in the USA to enable payment processing worldwide.

Here are the services we offer:

✅ Formation of U.S. LLC, in any state of your choice.

✅ Getting an EIN to apply with IRS.

✅ Provision of a virtual address and phone number in the US.

✅ Opening a U.S. business bank account with Mercury or Relay.

✅ Providing assistance with Stripe account configuration.

✅ Creation of a website and compliance pages for the business.

✅ Ongoing bookkeeping, issuance of ITIN, and tax filing support.

We now accomodate freelancers, agencies, SaaS owners, and eCommerce retailers and over the hundreds of entrepreneurs we have aided in launching and scaling thier businesses using U.S. Stripe accounts.

👉Begin your journey with Bizstartz now.

🙋‍♂️ Last Updated September 25, 2023

1. If I’m from a non-supported country, can I make a Stripe account?

You are able to open a Stripe account if you set up a U.S. company and bank. So, even if you live outside the United States, you can obtain a Stripe account.

2. Is a U.S. Social Security Number (SSN) required?

No. You can use your EIN and a foreign passport or national ID to register.

3. What types of businesses can use Stripe?

They support businesses from SaaS platforms, eCommerce and digital courses to coaching and consulting. However, they restrict certain industries like gambling, adult content, and high-risk finance.

4. How long does it take to get approved?

In most cases, if your documents and website are in order, Stripe usually approves accounts within 1–3 business days.

5. Can I access strip dashboard from my home country?

Yes. You can access your account from anywhere in the world once it’s approved.

6. What happens if Stripe rejects my application?

You will receive an email with the information. They assist with rewriting to ensure acceptance.

7. Is Stripe safe and secure?

Absolutely. For accepting payments online, Stripe stands as one of the most secure platforms, as it is PCI-compliant.

8. Can I use Stripe for both physical and digital products?

Certainly. Stripe facilitates both the delivery of physical products and the provision of digital services or subscriptions.

9. Will I need to pay U.S. taxes if I have a U.S. Stripe account?

That depends on how your LLC is structured. Bizstartz will help you determine if and how you’ll owe taxes and stay compliant.

10. How much does it cost to set up everything?

These services vary based on state, and some non-residents may benefit from affordable range packages offered by Bizstartz.

🚀 Ready to Accept Payments Internationally?

Geographic limitations will no longer impede your business growth.

With a U.S. LLC and a Stripe account, you can access global markets, expanding to new platforms and running a professional online business wherever you connect your laptop.

Let Bizstartz construct your U.S. business framework while you focus on increasing revenue.

👉 Start your Stripe journey with us now

Amazon dropshipping is one of the most lucrative options for anyone seeking a location-independent online business.

Entrepreneurs from different parts of the world are getting onto it due to low initial investment, access to a large number of consumers, and the model being easily scalable.

However, if you intend to grow, specifically as a non-U.S. resident, you will require more than just a seller account. Operating a U.S. business entity, such as an LLC, is crucial.

This thorough guide will cover:

• What is Amazon dropshipping?
• Why you should create an LLC for Amazon dropshipping.
• Benefits of an LLC for non-residents.
• How to start Amazon dropshipping with an LLC (step-by-step).
• Legal compliance and Amazon policies.
• Taxes and ongoing obligations.
• Expert tips for success.

So let’s get started.

What is Amazon Dropshipping?

In Amazon dropshipping, the seller does not keep any inventory of the products being sold. Instead, upon receiving an order from his/her store on Amazon, the seller notifies a supplier who ships the purchased product directly to the buyer.

As a middleman, you earn the difference between the selling price and the supplier’s cost.

Here’s how it goes:

• You create listings for products on Amazon.
• A customer orders the product.
• You purchase it from a supplier, for example, CJ Dropshipping or a private wholesaler.
• The supplier then directly ships the product to the customer.
• You keep the profit the margin.

Advantages of Amazon Dropshipping.

✅ No Inventory Required.

✅ Low Initial Costs

✅ Simple To Expand/Scale Business

✅ Massive Customer Base (> 300 million on Amazon)

✅ Amazon takes care of payment processing & manages website.

Nonetheless, Amazon is known for enforcing rigorous policies regarding dropshipping, which often requires operating under a verified LLC for legal credibility and compliance reasons.

Why Start Amazon Dropshipping with LLC?

An LLC (Limited Liability Company) will provides you with flexibility, professionalism, and legal protection. If you live in Nepal, India, or any other place outside the U.S., having an LLC will give you a strong upper hand in business.

Here’s the key benefits of an LLC that makes it so recommended.

1. Protects Against Legal Liability

Your business and your personal finances are separated when you create an LLC. Therefore, if anything goes wrong with the Amazon store, whether it’s a lawsuit or a debt, your personal belongings such as your home, savings, and car are secure.

2. Amazon Seller Central Compliance

• To complete the signup on Amazon Seller Central, the business account needs to have:Business verification documents
• Tax identification (EIN)
• Bank account details
• A U.S. address and phone number.

An LLC helps you meet all these requirements.

3. Professional Image & Trust

Many banks and suppliers tend to avoid doing business with unregistered individuals. Your LLC will make your business stand out concerning supplier relations, payment processors, and even with Amazon shoppers.

4. Access to U.S. Bank Accounts and Payment Tools

With an LLC, you can open a U.S. bank account such as Mercury, Relay, and Wise. This is necessary to receive payments from Amazon and to handle transactions.

5. Tax Benefits

Non-residents can take advantage of favorable U.S. tax laws by forming an LLC. If you have no U.S. office, employees, or physical presence, your LLC may pay zero U.S. federal income tax. (Always consult a CPA.)

Top States for LLC Formation (with Fees)

Here’s a comparison of popular states for dropshipping LLCs:

State	LLC Filing Fee	Annual Maintenance	Best For
Wyoming	$100	$60 annual report	Privacy, low fees, non-residents
New Mexico	$50	No annual report	Absolute minimal maintenance
Delaware	$90	$300 franchise tax	Larger businesses, startups
Texas	$300	No state income tax, annual franchise report	Physical presence in TX

✅ Bizstartz Recommendation: For non-residents, Wyoming or New Mexico are the best states due to low costs, no state income tax, and privacy.

Step-by-Step: How to Start Amazon Dropshipping with an LLC

Step 1: Choose a State and Register Your LLC

• Choose an LLC name that is not already registered.
• Select your state (Wyoming and New Mexico recommended).
• Appoint a registered agent in that state.
• File Articles of Organization.
• Receive Certificate of Formation.

👉 Bizstartz handles all of this for you, including free registered agent for one year.

Step 2: Get an EIN (Employer Identification Number)

You will need an EIN to:

• Open a business bank account
• Register with Amazon
• File taxes

Non-residents can fill out Form SS-4 or have Bizstartz obtain it without an SSN or ITIN.

Step 3: Get a U.S. Address and Phone Number

For Amazon verification, you must have:

• A U.S. business address, which can be a virtual registered agent address
• A U.S. phone number, which can be obtained from OpenPhone or Sonetel

Step 4: Open a U.S. Business Bank Account

To receive payments, Amazon requires you to link a U.S. bank account. You can open an account with:

• Mercury (virtual bank for startups)
• Relay Financial
• Wise Business (multi-currency support)

Remember to bring your LLC documents and EIN.

Step 5: Register for Amazon Seller Central

Subscribe for Amazon Seller Central’s Professional Plan ($39.99/month) and prepare the following documents for submission:

• LLC name and details
• EIN
• U.S. address and phone
• U.S. bank account and debit/credit card
• ID verification (passport for non-residents)

Step 6: Find Compliant Dropshipping Suppliers

Amazon prohibits retail arbitrage, so make sure your supplier ships unbranded goods and allows for blind shipping (no invoices or logos).

Recommended Options:

• CJ Dropshipping (U.S. warehouse available)
• Alibaba or AliExpress (with customization)
• Print-on-demand services: Printful, Printify
• U.S. wholesalers found through SaleHoo or Inventory Source

Checklist:

• Shipping: Fast (2–7 days)
• Business-name custom invoices
• Return handling policies

Step 7: List Products and Start Selling

Improve your product listing for visibility and sales.

• Use relevant keywords in title and description
• Add high-quality images
• Offer competitive prices
• Provide fast and trackable shipping

While customers pay through Amazon, you must manage the order, shipping, tracking, and customer service.

Stay Compliant: Amazon Dropshipping Policy Overview

To stay compliant, you need to:

• Be the seller of record
• Remove third-party branding
• Invoices must show your branding and packaging
• Manage returns
• Provide customer service
• Maintain accurate inventory and shipping records

Break these rules with Amazon:

• Shipping products from another retailer
  
• Invoices or packing slips showing another business
  
• Late shipping and tracking issues

Tip: Facing a violation will risk suspension or a permanent ban. Work with proper wholesale suppliers.

Ongoing Compliance and Taxes for a Dropshipping LLC

While you operate an Amazon dropshipping business through a U.S. LLC as a non-resident, here is a simple breakdown of the compliance and tax obligations:

Federal Taxes:

• Based on your LLC’s structure, if you lack U.S. sourced income, it qualifies as zero U.S. tax exposure.
• Your LLC will need to file Form 5472 and pro forma 1120 on an annual basis. These forms are necessary for foreign held LLCs.

State Taxes:

Depends on the state. For example:

State	State Income Tax	Annual Report
Wyoming	No	$60 Annual License Tax
New Mexico	No	None
Delaware	No	$300 Franchise Tax

Sales Tax

• Amazon collects and remits sales tax in most states on your behalf
  
• You do not need to register for sales tax in most cases

BOI Filing (Beginning 2024):

Each LLC will file one Beneficial Ownership Information (BOI) report to FinCEN. If there are no changes in ownership, it is a one-off filing.

👉 Full-service compliance solutions including BOI, 5472, and tax filings are provided by Bizstartz.

Long-Term Success Tips

✅ Start with a niche: Focus on a category like home decor, fitness gear, or pet accessories.

✅ Use software tools: Tools like Helium10, JungleScout, or AutoDS can help with research, automation, and fulfillment.

✅ Optimize your listings: Use A/B testing and keyword-rich content.

✅ Stay compliant: Avoid sourcing from Amazon or retail stores. Work with private suppliers.

✅ Reinvest profits: Scale slowly. Test new products, invest in branding, and consider private labeling.

Final Thoughts: Is Amazon Dropshipping with an LLC Worth It?

Of course it is. With the right methods, forming an LLC can shift you into a serious global e-commerce powerhouse.

You can:

• Maintain a legal and formal business presence
• Open bank accounts in the U.S.
• Receive approvals from Amazon
• Legally pay lower taxes
• Get quality suppliers

Start Your Amazon Dropshipping LLC Today with Bizstartz

At Bizstartz, we help international entrepreneurs form U.S. LLCs, and launch Amazon businesses successfully.

We offer:

• Business formation services (LLC in WY, NM, DE, etc.)
• Tax identification number request
• American bank account establishment
• Phone number and address for Amazon
• BOI submissions, 5472 disclosures, and others

👉 Create your Amazon LLC immediately with Bizstartz

Frequently Asked Questions (FAQs)

1. Is it possible for me to start Amazon dropshipping from outside of the USA?

Of course. Amazon permits international sellers on their platform, but you need to fulfill certain criteria. The most vital is to have an American company typically an LLC alongside a business address, phone number, bank account, and tax ID (EIN). Companies like Bizstartz assist overseas business owners with everything through virtual means.

2. Can I use LLC for Amazon dropshipping?

Absolutely, as long as you adhere to the guidelines set by Amazon. Your LLC must be the “seller of record,” meaning all sales invoices must be issued in the name of the business. Also, your supplier must not use their own branded packaging or invoices for shipping. You are liable for managing customer support and returns as well. Also don’t resell products from Walmart, Target, or other stores because Amazon doesn’t allow that.

3. As a non-resident, what are the tax duties for my dropshipping LLC?

If you are a non-US resident without a US office, employees, or physical presence, you might not be liable for US federal income taxes. That said, you still need to:

• Submit Form 5472 and a pro forma 1120
• Complete the BOI (Beneficial Ownership Information) report
• State-specific reporting, if needed

Amazon does most sales tax collection and remittance automatically as well. It’s still recommended to get in touch with a tax compliance specialist or let Bizstartz handle your compliance.

4. How long does one have to wait for the formation of an LLC and start selling in Amazon?

The overall timeline estimate ranges within 7 to 21 days. This varies based on how fast each step is completed:

• LLC Formation: 1–3 business days (with Bizstartz)
• EIN: 1–5 business days
• U.S. address and phone: Same day
• Bank account: 3–7 business days
• Amazon Seller Central approval: 1–14 days post application

Bizstartz streamlines this process so most clients can get fully set up in under 14 days.

Texas often sits at the top of lists showing which state is best for launching and growing a new business.

From a neighborhood lawn-care service and an online clothing store to a tech startup with global dreams, a Texas Limited Liability Company (LLC) gives you legal protection, builds trust with customers, and throws in some nice tax perks.

This step-by-step guide walks you through picking a name, filing the right papers, and keeping everything on the level, so you can form an LLC in Texas with peace of mind-whether you live in Houston or halfway around the world.

Why Choose Texas for Your LLC?

With the nations second-biggest state economy, friendly laws, no personal income tax, and a booming startup scene, Texas offers a stage where businesses can run hard and grow fast.

Key Benefits of Starting an LLC in Texas:

• No State Income Tax: Owners pocket more money because Texas does not tax LLC profits at the personal level.
• Supportive Business Climate: Low costs, quick permits, and plenty of investors knock Texas high on the ease-of-business scale.
• Strong Legal Protection: An LLC shields your home and savings by keeping business risks separate from your personal finances.
• Perfect for Foreign Founders: Non-U.S. citizens and residents can start an LLC in Texas, own it fully, and do so without a U.S. address or visa.
• Thriving Business Hubs: Cities such as Austin, Dallas, and Houston buzz with innovation, offer abundant networking events, and roll out policies that welcome startups.

No matter where you sit in the world, Texas remains a low-cost, flexible spot for launching your LLC on solid ground.**

Step 1: Pick a Name for Your Texas LLC

Your journey starts by picking a name no one else has, one that meets the law and captures your vibe. That name gets filed with the Texas Secretary of State.

Texas Naming Rules:

• It must have Limited Liability Company or the short forms LLC or L.L.C. somewhere in it.
• It cant hint that you’re part of the government, and certain words like Bank, University, or Insurance need special permission.
• It has to look different from every other business already registered in Texas.

Quick Name Check:

Head to the Texas Secretary of States website and run your idea through the Taxable Entity Search Tool to see if its still up for grabs.

💡 Pro Tip: Grab your domain and exact social media handles at the same time so your brand stays consistent everywhere.

Step 2: Pick a Registered Agent in Texas

Every Texas LLC needs a Registered Agent, and yes, its the law. This person or company collects official letters, court papers, and any other legal notices for your business.

Requirements for a Registered Agent:

• They must be a Texas resident or a company allowed to do business in Texas.
• They need a real street address in Texas; P.O. Boxes wont work.
• They must be available during regular business hours, usually 9 a.m. to 5 p.m. Monday through Friday.

Options:

• If you live in Texas, you can act as your own registered agent.
• Many owners choose a professional service to keep their address private, stay compliant, and avoid missing important papers.

📌 At Bizstartz we provide low-cost Texas registered agent plans that include mail scanning, document forwarding, and yearly compliance reminders.

Step 3: File the Certificate of Formation with the Texas Secretary of State

After naming your agent, the next step is to file Form 205, or the Certificate of Formation, with the Texas Secretary of State. This paper officially brings your LLC to life.

What the Certificate of Formation Includes:

• Your LLCs legal name
• Name and address of your Registered Agent
• Whether the LLC will be member-managed or manager-managed
• Duration of the LLC-usually perpetual
• Broad general-purpose clause
• Name, address, and signature of the Organizer

Filing Options:

• Online via SOSDirect-fastest method
• By mail to P.O. Box 13697, Austin, TX 78711-3697
• By fax (Form must include a credit card payment form)

Cost:

• Filing fee $300
• Optional $25 to reserve the business name in advance
• Processing time 5 to 7 business days or within 1 to 2 days with expedited processing

Step 4: Create an Operating Agreement

Even though Texas doesn’t require an Operating Agreement, this living document is still crucial. It serves as a private contract among members and spells out how the business will run day to day.

What to Include in an Operating Agreement:

• Ownership structure (who owns how much of the business)
• Rights and responsibilities of each member or manager
• Profit and loss distribution rules
• Voting procedures and decision-making guidelines
• Procedures for adding or removing members
• Dissolution process

Why You Need It:

• Helps prevent internal disputes
• Establishes clear roles and expectations
• Demonstrates professionalism to banks, partners, and investors
• Provides clarity during legal proceedings

💡 Even if you are a single-member LLC, having an Operating Agreement shows the IRS and banks that your business is a separate legal entity.

Step 5: Get an Employer Identification Number (EIN)

An EIN, or Employer Identification Number, is the 9-digit tax ID the IRS gives to your business. You need one if you plan to:

• Open a business bank account
• Hire employees
• File federal or state taxes
• Apply for business credit or licenses

How to Apply:

U.S. Citizens/Residents: Apply online at irs.gov.

Non-Residents: Fill out Form SS-4 and fax or mail it to the IRS. (No SSN needed.)

📌 At Bizstartz, we help non-U.S. residents get an EIN-even without a Social Security Number (SSN) or ITIN.

Step 6: Understand Texas Franchise Tax & Public Filings

Every LLC in Texas, big or small, needs to send an Annual Franchise Tax Report and a Public Information Report (PIR) to the Texas Comptroller of Public Accounts.

Key Points:

• Due Date: May 15th each year
• Taxes are based on gross sales, and no tax is due if revenue stays under $2.47 million
• Even if you owe nothing, you still file a No Tax Due Report

Forgetting to file brings penalties, interest, and may hurt your good standing with the state.

✅ Bizstartz offers annual compliance packages to handle your filings and keep your LLC active.

Step 7: Open a Business Bank Account

Keeping personal and business money separate protects you and makes taxes easier. A dedicated business account tracks income, expenses, and sales tax at a glance.

Documents Needed:

• EIN confirmation letter from IRS
• Certificate of Formation (filed Form 205)
• Operating Agreement
• Valid ID and proof of address

Options:

• Traditional U.S. banks usually want an in-person visit.
• Online banks like Mercury, Relay, or Wise work well for non-residents.

💡 We help both local and international founders open U.S. business bank accounts remotely, even if you’re outside the U.S.

Step 8: Register For Business Licenses or Permits

Before you start trading, take a minute to find-out if your Texas LLC needs any special licenses. Depending on what you sell, where you work, and who you serve, you might run to the city, state, or even a federal office.

Common Licenses:

• Sales Tax Permit (needed if you sell taxable items or services)
• Professional Licenses (required for healthcare, finance, real estate, and similar fields)
• Home Occupation Permit (must-have if your office is your kitchen table)

To see which papers are yours, read the Texas Business Licenses & Permits Guide or just call your local city or county clerk.

Step 9: Stay Compliant Every Year

Your LLC stays strong only if you keep up with yearly chores. Skipping a single task could cost you money and, worse, drag your limited liability protection down with it.

Ongoing Responsibilities:

• File Annual Franchise Tax & Public Information Report
• Renew any licenses or permits on time
• Keep Registered Agent details current
• Organize business records and tidy accounting
• Update the Operating Agreement when things change

📌 BizStartz can handle compliance checks, bookkeeping, and BOI filings so your Texas LLC never misses a beat.

Final Thoughts

Starting an LLC in Texas gives local and foreign business owners a strong launchpad.

With no state income tax, a straightforward setup, and solid asset shielding, Texas suits anyone ready to enter the U.S. market.

Whether you’re opening an online shop, running a consulting firm, or coding a tech app, a Texas LLC keeps you legal, guards your personal wealth, and connects you to customers worldwide.

📌 Ready to Start Your Texas LLC the Easy Way?

Let Bizstartz handle your entire LLC setup from A to Z. Our team guides non-U.S. founders through getting an EIN, opening a bank account, and meeting every rule.

✅ Registered Agent

✅ EIN Application

✅ Operating Agreement

✅ Annual Compliance

✅ U.S. Business Banking Support

👉 Visit www.bizstartz.com to get started today.

FAQs About Forming an LLC in Texas

1. How long does it take to form a Texas LLC?

Standard filing takes 5-7 business days, but submitting online through SOS Direct is usually faster. Expedited service is also offered for an extra fee.

2. Can a foreigner own a Texas LLC?

Absolutely. People and companies from outside the U.S. can start and fully own a Texas LLC. You don’t need to be a resident or citizen.

3. Do I need a physical office in Texas?

You don’t need a full-fledged office, but you must name a registered agent who has a real Texas address.

4. What are the annual fees for Texas LLCs?

• Annual Franchise Tax Report: $0 for small businesses under $2.47 million
• Public Information Report: Free, but still mandatory
• Registered Agent renewal: varies by provider, usually $49 to $150 each year

5. Can I use my Texas LLC to open an Amazon or Stripe account?

Yes! A Texas LLC works just fine for Amazon FBA, Etsy, Shopify, PayPal, Stripe, and other big online platforms.

Building a profitable dropshipping store is a tricky puzzle, and the last piece you want to lose is your hard-earned money to taxes. Stopping that leak starts with forming a U.S. LLC.

Most sellers-and especially new owners-always glance at product imports and Facebook ad costs, yet few pause long enough to see where they can save on tax day. whether you live in the States or run your store from abroad, a legal LLC can slash what you owe, shield your personal stuff, and turn your company into a lasting venture.

Lets sift through the tax benefits of LLC for dropshipping, and check if this path makes sense for your goals.

What is an LLC and Why Does It Matter for Dropshipping?

A Limited Liability Company-LLC for short-is a U.S. business setup that wraps your shop in legal armor and lets you pick how the IRS collects taxes. That blend of safety and flexibility is why people in e-commerce still lean on it year after year.

Back to the basics: a sole proof or a loose partnership ties your name straight to every order, refund, and supplier bill. An LLC steps in and draws a clear line between company money and the stuff you own, like your phone, house, or savings account.

If the shop faces a lawsuit or runs behind on bills, creditors cant reach your personal belongings, and that peace of mind is priceless.

Why It Matters for Dropshippers

If you still run your store under your name or as a sole proprietorship, you leave yourself wide-open to trouble:

• One unhappy customer can drag you into court, turning a complaint into a legal mess.
• A chargeback or payment-gateway freeze might come straight out of your personal savings.
• And all the money your store makes gets taxed at the higher rates meant for individuals, with almost no room to wiggle.

Choose an LLC, though, and you give yourself a real business face, cut those legal risks way down, and gain tax moves that let you keep much more of every sale.

Tax Benefits of an LLC for Dropshipping

So why do most dropshippers actually think about the LLC upgrade? Because of the money it can save them, plain and simple. Whether your store is pulling five figures a month or you only sideline a few orders, the right tax setup keeps extra cash in your pocket.

1. Pass-Through Taxation Means No Corporate Tax

By default, an LLC works like a pass-through business. Instead of the company itself coughing up corporate tax, the profit flows straight to you and any partners, landing on your personal return.

How This Helps You:

Now you get taxed only one time on that profit. Compare that to a typical C-corporation, where earnings face a corporate bite and then the owners get taxed again when they take money out.

For small and mid-sized dropshipping businesses, pass-through taxation can save you thousands of dollars each year.

Imagine this: your online store pulls in a tidy $60,000 after expenses.

• Sole Proprietor/LLC: You pay tax once, based on your personal income bracket.
  
• C-Corporation: You pay corporate tax (21%) + tax again when you distribute profits.
  

✅ LLC saves you from this double taxation.

2. Electing S-Corp Status Can Reduce Self-Employment Taxes

Once your dropshipping store brings in steady profit, usually around $40,000 a year, you might think about switching your LLCs tax treatment to S corporation status.

Why This Matters:

When you operate as an S-Corp, you can split your income into:

• A reasonable salary, which is subject to payroll and self-employment taxes
• Remaining profit distributions, which are not subject to self-employment taxes

Example:

• Profit: $80,000
  
• Salary: $40,000 → taxed normally
  
• Distributions: $40,000 → avoids ~15.3% self-employment tax
  

✅ This can save you $6,000+ per year in taxes.

Just remember, electing S-Corp status requires running payroll and maintaining cleaner books, but the tax savings are often worth it.

3. You Can Write Off Legit Business Costs

LLC status lets dropshippers pocket one of the best tax tricks: writing off real business costs. These expenses show up every day, helping your store run smoothly.

Common write-offs for dropshippers include:

• Domain and hosting fees (Shopify, WooCommerce)
• Ad spend (Facebook, Google, TikTok)
• Sample products and testing
• Pay for virtual assistants or freelancers
• Tools and software (Canva, email marketing, automation)
• Phone line or internet used for business
• Travel to meet suppliers or attend conferences

✅ Each write-off chips away at your taxable income, so you owe less tax.

Pro Tip:

Tiny costs-a $29 Shopify plan or a $15 app-still count. Collect and sort them all, and you’ll stay on the right side of the law while trimming your bill.

4. Lower Audit Odds from the IRS

Freelancers and sole props face more audit letters than formal setups. Forming an LLC, or even better letting it be taxed as an S-Corp, sends the IRS a signal: I run a serious business.

When you keep clear books, use a business bank account, and save clean records, your return looks stronger and the audit risk drops.

✅ That calm feeling-better than you might think-is a quiet benefit of going LLC.

5. Forming in the Right State Can Eliminate State Income Tax

If you live outside the U.S. or move around while running a U.S.-based dropshipping store, you can pick the state where your LLC sits.

States With Major Tax Advantages:

• Wyoming: No state income tax, no franchise tax, strong privacy laws.
• New Mexico: No annual reports, low fees, privacy-friendly.
• Delaware: Known for legal advantages and flexibility.

✅ By choosing the right state, you can legally avoid state income tax and cut back on paperwork.

Bonus: Advanced Tax Planning Opportunities

A well-structured LLC opens up smart tax moves like these:

• Retirement contributions: Solo 401(k) and SEP IRA plans.
• Hiring family: Pay relatives wages and lower your income.
• Health Reimbursement Arrangements (HRAs): Cover doctor bills tax-free.
• Depreciation: Write off equipment and assets over time.
• Timing game: Shift income and costs to dodge high-tax years.

✅ Many of these tricks work best once you register an LLC, so set it up early.

Is Forming an LLC Right for Your Dropshipping Business?

Here are a few clear signs that you should consider turning your dropshipping side hustle into an LLC:

• You’re making steady income of about $1,000 a month or more.
• You want to lower the self-employment taxes you pay on that profit.
• You’ve ramped up spending on ads or big-name influencer promos.
• You need a clean line between business money and your personal cash.
• You plan to take those profits and pour them back into growth or hiring.
• You’d like suppliers and payment platforms to see a serious, registered brand.

✅ If any of these points ring true, creating an LLC can boost your legal safety and save you on taxes.

✅ How to Form an LLC for Dropshipping (Step-by-Step)

This simple, step-by-step plan works for U.S. residents and foreign founders running their dropshipping store from anywhere.

Step 1: Choose the Right State for Your LLC

Not every state offers the same deal when you form an LLC. Some hit you with high fees, yearly reports, or franchise taxes, while others keep costs low and stay welcoming to online or international business owners.

🔹 Recommended States:

• Wyoming: No state income tax, cheap yearly fees, solid privacy laws, and you don’t need a separate business license.
• New Mexico: Low setup cost, no annual report, and still privacy-friendly.
• Delaware: Excellent legal setup and the go-to state for big companies. Still, it might not make sense for small dropshippers.
• Florida or Texas: Solid picks if you already live there or have employees in either state.

✅ Tip: If you don’t live in the U.S. and have no address or warehouse here, Wyoming and New Mexico usually save you the most money while staying complaint.

Step 2: Choose a Business Name

Start by picking a name for your LLC that ticks a few boxes:

• It must be different enough that no other business in your state has the same name.
• It should sound professional and fit the vibe of your dropshipping store.
• And if you plan to build a website, grab a .com domain that matches.

You can find out if a name is free by searching your state s Secretary of State database. Many states even let you hold the name for a small fee, so you don’t lose it before filing.

💡 As a general rule, steer clear of words like Bank, Insurance, or Corporation unless you have the licenses to back them up.

Step 3: Appoint a Registered Agent

A Registered Agent is simply a person or company that accepts important mail-taxes, legal notices, or official documents-for your LLC in the state where you set up. Every state makes you have one.

If you dont live in that state:

you still need a local agent, so hire a registered agent service based where your LLC is, like a Wyoming agent for a Wyoming company.

✅ Bizstartz offers reliable registered agent services in Wyoming, New Mexico, and several other popular states.

Step 4: File the Articles of Organization

Filing the Articles of Organization is the big moment when your LLC officially pops into existence on the states books. This basic form usually asks for:

• Your chosen LLC name
• Your registered agents name and address
• A short business purpose (you can say e-commerce if that feels right)
• How long the company will run (most folks pick perpetual)
• The organizers signature

Most states let you zip through this step online at the Secretary of State page. As for the cost, it changes from place to place-as low as $50 in New Mexico but up to $300 in Texas.

Process Time: Expect to wait 1 to 10 business days. Several states also sell a hurry-up option if you pay a bit extra.

Step 5: Get Your EIN from the IRS

The EIN, or Employer Identification Number, works like a Social Security number for your new company. You need it to:

• Open a U.S. business bank account
• File taxes on time
• Hire employees or pay contractors
• Process sales through PayPal, Stripe, or Shopify Payments

The best part is that you can grab an EIN for free on the IRSs website if you live in the U.S. Non-residents without a Social Security number can still apply by fax or old-school mail.

Bizstartz helps overseas clients snag their EIN fast-forget about needing a U.S. address or Social Security number.

Step 6: Create an Operating Agreement

Think of the Operating Agreement as the manual for your LLC. It may not be required in every state, yet having one is smart if:

• multiple owners (members) are involved
• you want to spell out who does what and how profits are split
• you aim to open a bank account or seek business credit

Even if you run a single-member LLC, this document looks professional and keeps you in line with rules.

Step 7: Open a U.S. Business Bank Account

Keeping personal money separate from business funds protects your legal shield, simplifies taxes, and lets you bill customers like a pro. For owners outside the U.S., several online banks let you sign up from anywhere:

• Mercury works well for e-commerce shops
• Relay Financial suits remote teams and easy bookkeeping
• Wise (Multi-currency) shines in cross-border payments

Make sure you have your LLC papers and EIN handy when you apply. If you need a hand, Bizstartz can walk you through the whole bank-account setup.

Step 8: Apply for Sales Tax Permits (If Required)

When you sell physical goods to U.S. customers, you might have to collect sales tax in each state where you have nexus-a real link to the area. Nexus can happen in a few common ways:

• You keep a physical location like an office or warehouse.
• You hit a set dollar amount or number of transactions (called economic nexus).
• You use a third-party fulfillment service such as Amazon FBA.

To stay on the right side of the law, follow these steps:

• Sign up for a sales tax permit in any state you touch.
• Consider an automation tool like TaxJar, Avalara, or something similar.
• Collect the right rate at checkout and remit it to each state on time.

Dropshippers who have no U.S. nexus-usually because they ship directly from abroad-may skip sales tax altogether. Still, every state has its own quirks, so it pays to double-check before assuming youre off the hook.

Step 9: Keep Your LLC in Good Standing

Congratulations on starting your LLC. Now comes the quiet work that keeps it alive.

• Annual reports (not required in all states.
  
• State franchise taxes or fees (some states like California and Texas charge yearly fees)
  
• Federal and state tax filings
• BOI (Beneficial Ownership Information) filing as per the new FinCEN rule

Beyond forms and fees, keep these habits going:

• Log every dollar in good bookkeeping software.
• Renew your registered agent and any business licenses each year.
• Use separate accounts for personal and business stuff. Programs like QuickBooks or Xero make this easy.

Need a hand? ✅ Bizstartz offers full, compliance support, a one-stop shop for filings, taxes, and books.

Final Thoughts: Don’t Miss Out on Your LLC Tax Perks

Whether you’re running your dropshipping store part-time or full-time, an LLC turns wishful thinking into real savings and real protection.

Its tax perks include:

• No double taxation on profits.
• Lower self-employment taxes if you choose S-Corp status.
• Full deductions for tools, ads, and even coffee.
• Less chance of a costly audit.
• Freedom to register in states without income tax.

Still selling under your name? You’re paying too much tax and leaving your personal assets wide open. Protect them today.

🚀 Start Your LLC With Bizstartz

Bizstartz guides dropshippers and online sellers worldwide in launching U.S. companies fast and affordably. There s no need to travel; our team takes care of everything from start to finish, all online.

✅ U.S. LLC

✅ EIN

✅ U.S. Business Bank Account

✅ Registered Agent

✅ BOI Filing

✅ Bookkeeping & Tax Filing

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Setting up a Limited Liability Company (LLC) in the United States has become one of the most recommended paths for new business owners, and New Mexico frequently tops the list.

Because the state asks for no annual report, charges only low one-time fees, and gives strong privacy safeguards, many non-resident founders, freelancers, online shop owners, and digital nomads find it hard to pass up.

This step-by-step guide will show you exactly how to get your LLC in New Mexico, point out the special perks the state offers, and answer the key questions so you can start on solid ground.

Why Start an LLC in New Mexico?

1. No Annual Reports or Renewal Fees

New Mexico stands out because it doesn’t ask LLCs to file yearly reports or pay ongoing franchise taxes. Form your business once, and after that there are no routine state papers or renewal bills, meaning more time for you and more money for growth.

2. Low Formation Cost

New Mexico charges just $50 to set up an LLC. That fee is paid only once, and you wont find any surprise costs later. You can handle everything online through the states easy portal, making start-up quick and simple.

3. Strong Privacy Protection

In New Mexico, the names of LLC owners and managers never show up in public records. This privacy shield is great for digital sellers, overseas founders, and anyone who wants to stay out of the spotlight.

4. Ideal for Remote and Global Businesses

New Mexico LLCs work well for remote businesses like dropshipping, freelancing, consulting, and software start-ups. Even if you live outside the United States, you can own and run your New Mexico LLC legally when you set things up correctly.

Step 1: Choose a Unique Name for Your LLC

Your LLC name is more than a label; its the first thing customers see. In New Mexico, the name must meet a few simple rules:

Naming Rules:

• Must include Limited Liability Company, LLC, or L.L.C.
• Cant include restricted words like bank, insurance, or corporation unless you get special approval.
• Must be different from any business already registered in New Mexico.

Tips for Choosing a Great Name

• Describe Your Business: Pick a name that hints at what you do.
• Keep It Simple: Use clear words that are easy to spell, say, and recall.
• Secure the Domain: Make sure the matching .com web address is still up for grabs.

To see if your name is free, use the New Mexico Business Search Tool online.

Step 2: Appoint a Registered Agent in New Mexico

Every LLC needs a Registered Agent-a trusted person or company that accepts legal papers, tax notices, and other official mail for your business.

Registered Agent Requirements

• Local Presence: The agent must live in New Mexico or be a business permitted to operate there.
• Real Street Address: Only a physical address works; P.O. Boxes are not acceptable.
• Business Hours Availability: The agent must be reachable during normal weekday hours to accept service of process.

Why Use a Professional Registered Agent?

Many owners, especially those based overseas, hire a service to save time and keep personal details private. A good agent:

• Shields Your Home Address: Your personal address stays out of public records.
• Prevents Missed Notices: You’ll never overlook a critical legal alert.
• Enables Global Operation: You can run your business from anywhere.

At Bizstartz, we provide trusted Registered Agent services specifically for New Mexico LLCs.

Step 3: File the Articles of Organization Online

The Articles of Organization is the form that officially launches your LLC in New Mexico. In state law, this document marks the legal birth of your business. You must file it online using the New Mexico Secretary of State’s dedicated portal.

What You’ll Need to File:

• Your chosen LLC name.
• The registered agent’s name and street address.
• A brief business purpose (general is fine).
• Management structure: member-managed or manager-managed.
• Duration: perpetual or set number of years.

Filing Fee: $50 is due at submission. The fee is one-time and non-refundable.

After you file, state staff review the form. If everything checks out, they send the Certificate of Organization. That certificate proves your LLC is real and legally recognized.

Step 4: Create an Operating Agreement

New Mexico does not force LLCs to write an Operating Agreement, yet doing so is smart. This private document explains who does what, how choices get made, and how profits flow.

Key Elements of an Operating Agreement:

• Percentage of ownership for each member.
• Voting rights and everyday duties.
• How profits and losses are shared.
• Process for adding or removing members.
• Steps to resolve friendly disputes.

Even solo owners benefit. A clear agreement helps prove that the business is separate from personal assets, which strengthens the shield of limited liability.

If you need one, Bizstartz offers ready-to-use templates. The team tailors each template for single-member or multi-member LLCs, saving you time and hassle.

Step 5: Apply for an EIN (Employer Identification Number)

Your Employer Identification Number, or EIN, is like a Social Security number for your business. The IRS gives it out, and you need one to:

• Open a U.S. business bank account
• Hire employees
• File federal taxes
• Use payment processors like Stripe or PayPal

How to Apply:

• If you live in the U.S., the easiest way to get an EIN is to fill out the online form on IRS.gov.
• For non-U.S. owners, you can still apply by sending Form SS-4 by fax or mail, but you might also need an ITIN if you don’t have a U.S. SSN.

Need help getting an EIN without an SSN? Bizstartz has guided hundreds of non-residents through the process quickly and simply.

Step 6: Apply for Licenses and Permits (If Required)

New Mexico does not ask for a statewide business license, but some local rules or special industry permits might still apply to you.

Examples include:

• Food shops often need health permits.
• Selling physical goods in some states means registering for sales tax.
• Many professional services must have specific licenses or certificates.

To find out what your business needs, check with the city or county where you will operate, or reach out to Bizstartz for clear guidance.

Step 7: Open a U.S. Business Bank Account

Keeping your business money separate from your personal funds is not just good practice; it protects you and makes your life easier. A U.S. business account:

• Builds trust with suppliers and customers
• Lets you accept payments from U.S. clients
• Keeps your books tidy and organized
• Makes tax time simpler and faster

What You’ll Bring to the Bank:

• Certificate of Organization (your LLC formation papers)
• EIN Letter from the IRS
• Operating Agreement
• Passport (plus ITIN if you have one)

Most banks still ask you to come in for the first visit, but Bizstartz now has remote-friendly options for global founders.

Step 8: Stay Compliant with Federal and Local Laws

New Mexico may skip annual reports and franchise taxes, but every U.S. business still has federal red tape to meet.

Key Compliance Tasks:

• Federal Tax Filing: LLCs file yearly returns using Form 1040 with Schedule C, or Form 1065 if you’re in a partnership.
• BOI Report: Starting January 2024, most LLCs submit Beneficial Ownership Information to FinCEN within 90 days of forming. Miss the deadline and you face fines.
• Registered Agent: Keep that service active so legal papers reach you on time.
• Record Keeping: Store accounting notes, meeting minutes, and contracts in one easy spot.

Need a hand? Bizstartz offers ongoing compliance and bookkeeping packages to keep you on track without the stress.

Final Thoughts

Starting an LLC in New Mexico is clearly a smart move for up-and-coming business owners.

Whether you plan to launch an online shop, a software service, or a small consulting gig, the state gives you low fees, easy rules, and great privacy.

At Bizstartz, we turn that promise into action.

• Form your New Mexico LLC
• Get an EIN without a Social Security Number
• Appoint a reliable Registered Agent
• Open a U.S. bank account remotely
• File BOI reports and stay compliant

🚀 Ready to Start Your New Mexico LLC?

Let us handle the paperwork, deadlines, and tiny details so you can focus on your launch.

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Frequently Asked Questions (FAQs)

1. Can a non-U.S. resident open an LLC in New Mexico?

Yes! New Mexico welcomes foreign entrepreneurs. You don’t need to be a U.S. citizen or resident to form or own an LLC.

2. Can I use New Mexico for my e-commerce or dropshipping store?

Absolutely. Its one of the most popular states for dropshipping and online businesses due to its low cost and no annual reporting.

3. Do I need a U.S. address to start the LLC?

You don t have to live in the United States, but your New Mexico LLC must hire a Registered Agent with an address in that state.

4. What taxes does a New Mexico LLC pay?

If your LLC does no business in New Mexico, the state does not charge income tax. You will still owe federal taxes and maybe sales tax in other states if you sell goods there.

5. How long does it take to form an LLC in New Mexico?

When everything is filed online the right way, New Mexico usually approves an LLC in just 1 to 3 business days.