LLC for Shopify and e-commerce stores
An online store is a public-facing business handling customer payments, personal data and physical products — three things that attract claims. An LLC keeps those claims away from your personal assets and gives payment processors, suppliers and lenders a company to deal with. It is also the point where most store owners finally separate business and personal money.
At a glance
Incofile forms the LLC, obtains the EIN, provides the registered agent and a US business address, and prepares the documents Shopify Payments, Stripe and your bank will ask for.
When to switch from sole proprietor to LLC
As soon as you have meaningful revenue, physical products, or employees or contractors. The costs are small — a state fee plus a yearly report — and the protection and credibility are immediate. Waiting until something goes wrong is the expensive order of operations.
Payments: Shopify Payments, Stripe and PayPal
Open the processor account in the LLC's legal name with its EIN, connected to the LLC's business bank account. Processors verify the entity and the owner; consistent details (legal name, address, website, product category) make approval routine. Non-US store owners use the US LLC to access Shopify Payments and Stripe that are unavailable or limited in their own country.
Sales tax for online stores
You collect sales tax where you have nexus: a physical presence (home, warehouse, staff) or economic nexus once sales into a state pass its threshold (commonly $100,000). Marketplaces collect for marketplace orders; your own Shopify store does not, so register in nexus states and let Shopify Tax or a tax app calculate rates. Start simple — your home state — and add states as thresholds are crossed.
Which state?
US residents: your home state, because that is where nexus and income tax already exist. Non-US residents: Wyoming for low upkeep and privacy, Delaware if you plan to raise money. Forming in a "no income tax" state does not remove income tax where you live.
Which state should you choose?
What Incofile does for you
- Form the LLC in your chosen state
We prepare and file the formation documents, act as organiser and provide the registered agent in that state — your home address stays off the public record.
- Obtain the EIN
We apply to the IRS for your Employer Identification Number so you can open the bank account and set up payments.
- US business address and mail scanning
A real US street address for banks, marketplaces and payment platforms, with every letter scanned to your portal ($155/year).
- Operating agreement and banking resolution
The documents banks, Amazon, Walmart and payment processors ask for, prepared in your company's name.
- Compliance calendar in your client portal
Annual report deadlines, registered agent renewal and tax-filing dates, with reminders before each one — plus 24/7 access to every document.
Ready to set up your LLC the right way?
Transparent one-time pricing from $0 + state fee. Real humans answer your questions by email and chat, and your client portal shows every step of the filing.
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E-commerce & Shopify Stores — frequently asked questions
Can I move my existing Shopify store to the LLC?
Yes. Update the store owner and business details, re-verify Shopify Payments in the LLC's name and switch the payout bank to the LLC account. Orders and customers are unaffected.
Do I need a separate bank account?
Yes — it is the single most important habit for keeping liability protection and clean books.
Single-member or multi-member?
Single-member if you own it alone (simplest taxes). Multi-member if you have a partner; the operating agreement then matters a great deal — Incofile prepares it.
Do I need a resale certificate?
If you buy inventory from US wholesalers, yes: it lets you buy tax-free for resale. Incofile can help once you are registered for sales tax.
What does the LLC cost per year?
The state annual report or franchise tax (see our state pages), registered agent renewal and tax-filing costs. Incofile's formation fee is one-time.