Many people can become perplexed when it comes to understanding the various legal requirements and jargon when it comes to launching an internet business. One of the frequent misunderstandings is if a domain name and a Limited Liability Company (LLC) are the same thing. No, a domain name is not the same as an LLC, to put it simply.
Simply said, a domain name is the name users type into their browsers to access your website. It resembles the street address of a physical store. However, an LLC is a legitimate corporate structure that shields its owners from personal liability. It can conduct business and engage into contracts on its own because it exists independently from its owners.
Let’s now answer the pertinent queries. You need a legal entity, such an LLC or a sole proprietorship, if you wish to lawfully sell something online. In the event that your business is involved in any legal disputes, this will protect your personal assets. Additionally, you must adhere to tax regulations and acquire any licenses or permissions needed for your business.
Yes, without an LLC you can start selling products online, but it’s not advised. You will be personally responsible for any legal problems with your company if you don’t have a legal entity. Additionally, many online markets like Amazon and Etsy demand that you have a legal entity in order to sell on their websites.
To sell on Facebook, you don’t necessary need a tax ID number, but you will need to file a tax return and disclose your income. To keep track of your income and expenses, you should apply for a tax ID number if you want to sell on a bigger scale.
Similar to this, you must obtain a business license and abide by local laws and regulations if you wish to sell on Etsy. The failure of a seller to abide by Etsy’s rules and regulations may result in account suspension or termination.
A domain name is not the same as an LLC, to sum up. It is advised to have a legal business, such as an LLC or sole proprietorship, obey tax regulations, and obtain any relevant licences or licenses in order to lawfully sell goods online. Without a legal entity, you can start selling products online, but doing so is not advised because it subjects you to personal liability.