Shopify Dropshipping with LLC

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:

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

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.