The simple answer is, no, you don’t need an LLC to start your own business, although you may decide you want one.
An LLC, or limited liability company, provides personal liability protection and a formal business structure, but you can also get those things by forming a corporation or other type of business entity.
Do I need an LLC to dropship?
No other state or federal business filings are required. Limited Liability Company (LLC) – An LLC offers increased protection of your personal assets by establishing your business as a separate legal entity. Most small entrepreneurs tend to go with either a sole proprietorship or an LLC.
What kind of business license do I need for an Internet business?
Common License and Permit Requirements for Online Businesses
- General business license.
- Assumed name registration.
- Professional and trade licenses.
- Health inspection certificates.
- Home occupation permit.
- Weights and measures registration.
- Tax requirements.
- Unemployment and workers’ compensation.
Do I need an LLC or sole proprietorship?
Sole proprietorships are generally less costly than LLCs. LLCs need to register with the state and pay registration or filing fees. With an LLC, you must keep LLC records and funds separate from your own. Operating as a sole proprietorship, you are taxed as a self-employed person.
Can you start an LLC by yourself?
Yes, in the District of Columbia, as well as all 50 states, one person can form an LLC as a single-member LLC, though they may not have all the same protections as a multi-member LLC. To do this, you will need to set up the organization of your LLC to be manager-managed and name yourself as the sole manager.