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Do I need to register a business or get an LLC before I start?

Legal setup paralysis — delays beginners by weeks on a non-critical decision

No. Not to start. Not to run your first product test. This is one of the most common delay tactics (often subconscious) that beginners use to avoid the uncomfortable work of actually building and testing.

What you actually need to start: a Shopify account, a Meta Business Manager, a payment method, and a product to test. That's it. An LLC matters later, for specific reasons:

  • Liability protection: Protects personal assets if someone sues your business. Meaningful once you're doing real revenue with real customers. Not meaningful when you have zero sales.
  • US payment processors: Stripe US and PayPal business accounts in the US require a US entity. If you want US-based processing at scale, you'll eventually want an LLC — but Shopify Payments works without one in many countries.
  • Tax filing: Once you're profitable, you'll need to report income regardless of entity structure. Many operators file as sole proprietors for the first year and form an LLC once revenue justifies the cost and complexity.

Form an LLC when you're making consistent revenue and the cost/complexity is justified. Right now: just start. The business registration will still be available when you actually need it.

LLC Formation Tools

See this in practice: START here

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