As an ecommerce merchant, forming a business entity like an LLC or corporation (in the US) can provide important benefits for your online business. While you may currently operate as a sole proprietorship, incorporating your business can limit your personal liability, allow for easier business financing, and provide tax advantages.
Incorporating establishes your ecommerce business as a separate legal entity from yourself personally. This means if your business is sued or faces legal issues, your personal assets are protected. An LLC or corporation also makes your business appear more credible to customers, partners, and lenders. You can more easily open business bank accounts and apply for financing with an incorporated entity. Additionally, you may qualify for lower corporate tax rates and can deduct a variety of business expenses.
Deciding whether to form an LLC or C Corp depends on your business needs and situation. This guide will walk you through key factors to consider and break down the steps to legally forming your ideal business structure. With the right entity choice and formation process, you can unlock advantages that allow your ecommerce company to thrive. We'll make incorporation straightforward so you can focus on growing your online sales and profits.
If you’re not in the US, no worries, as you can still form a US company and receive all the benefits.