No, one does not exactly need a business license to sell on Shopify. Starting on Shopify as a sales agent, there is no serious need for a business license. However, some kind of situations or business may arise in which a business license must be required. So, to provide a more suiting answer to the question posed above, while it is true to say that no business license is compulsorily needed to sell on Spotify, it should always be remembered or noted that it all depends on what kind of sales business is the case. Another factor outside of the type of business that may require getting a business license before selling on Shopify includes the choice of business location. While Shopify may not demand a business license from a seller, the country or state in which they reside may require such, as the business license is usually issued on a state, federal, city, and country basis.
Here are some other instances in which a business license would be required from a seller on Shopify:
(i) Business license may be required when the seller uses the Shopify Gateway payment method.
(ii) It may also be required when the seller makes more than $20,000 in a month through Shopify.
What is Business License?
It’s not surprising some persons may not know exactly what a business license is. More practically, it should be looked at or compared to a driver’s license, which permits drivers to drive on the express. In the same light, a business license is usually issued to business owners to help keep check of their business activities. Without it thus, depending on the country of the business location, one may not be permitted to run a business. A business license’s cost may vary depending on the country or state. For some, it may be about $50, and others even way more, say like $400.
How can I get a business license?
The requirements for getting a business license are very affordable. Though, for some countries, it may follow some due rigorous protocols, while for some others, it’s much easier to purchase. Even though these requirements may not exactly be the same from country to country, they are highlighted below as general requirements (an inevitable requirement for purchasing the license worldwide).
– It starts with determining the legal structure within the location of one’s business. Who exactly issues the license? State? Country? Federal? etc.
– Next up is a detailed description of what the business the seller intends to go into is all about. It is best to keep these descriptions professional.
– A sales tax license will also be required. This can be obtained from the seller’s state agency.
– Inspections would be carried out to ensure the seller is competent enough in the field of endeavor.