WHEN and WHY to form an LLC for your online business

Video Description

🎓 *Ready to Start Your Business Journey?* 👉 Get our FREE Small Business Startup Course – https://howtostartanllc.com/small-business-startup-course Learn everything from building a business plan to marketing your new venture with our comprehensive, easy-to-follow free course with hundreds of videos. Forming your LLC? We recommend Northwest — get their best *d𝗶𝘀𝗰𝗼𝘂𝗻𝘁* here: https://go.truic.com/4mAI4JE 🔥 Includes 1 FREE Year of Registered Agent Services Or, check out this $0 LLC solution from Tailor Brands (plus brand-building tools): https://go.truic.com/4mDr4Cl If you use our discount links, you get a discount and we receive a small commission. Thanks for supporting our work! --------- *📍 Video Overview* Can you start selling on Shopify, Etsy, or Amazon without forming an LLC? The short answer is yes—but it’s not the whole story. In this video, we provide a clear guide for online sellers, breaking down exactly what it means to operate as a sole proprietor versus an LLC. We cover the specific rules for each major e-commerce platform and pinpoint the key moments in your business’s growth when forming an LLC becomes critical for liability protection, credibility, and scaling your operations. *Useful articles:* Do I Need a Business License to Sell Online?: https://howtostartanllc.com/should-i-start-an-llc/ecommerce Shopify Specifics: https://howtostartanllc.com/form-an-llc/do-you-need-an-llc-to-sell-on-shopify (Search our site to find specifics for other platforms as well!) Sole Proprietorship vs. LLC - What’s the Difference?: https://howtostartanllc.com/llc-vs-sole-proprietorship What is a DBA (Doing Business As)?: https://howtostartanllc.com/what-is-a-dba-doing-business-as --------- *TIMESTAMP GUIDE:* 0:00 – Intro: Do You Need an LLC for E-commerce? 0:36 – Sole Proprietorships in E-commerce 1:52 – Platform-Specific Requirements 2:01 – Amazon's Framework & Insurance Rules 3:03 – Etsy's Structure for Individuals 3:47 – Shopify's System & Your Responsibilities 5:07 – Key Moments: When You NEED an LLC 7:53 – Growth Considerations for Your Online Business 8:44 – Practical Steps for Protection (With or Without an LLC) --------- *🎯 KEY TOPICS COVERED* First, we answer the core question and explain how most online sellers start as a sole proprietorship by default (0:36). Then, we dive into the specific rules for the major platforms you're selling on, including Amazon’s strict insurance requirements for sellers (2:01), Etsy’s simple structure for creators (3:03), and the unique tax and fulfillment responsibilities you have as a Shopify store owner (3:47). Next, we pinpoint the exact triggers that tell you it’s time to form an LLC, such as hitting certain revenue milestones, hiring help, or selling products with higher liability risks (5:07–7:53). Finally, we provide practical, actionable steps every seller can take right now to protect their assets and operate more professionally, whether they have an LLC or not (8:44). --------- Other Resources: 🔥 Get Free, Powerful Business Tools—sign up for TRUiC’s Business Center https://business.truic.com/ 🔔 Please like, comment, and subscribe if this helped! At TRUiC we’re dedicated to practical tools for small business owners—tell us what you want next. #LLC #Ecommerce #OnlineBusiness #SmallBusinessTips #BusinessStructure