When it comes to selling through an e-commerce platform such as Shopify, the question of whether or not you need a company to do so is often asked. The answer is, it depends.

Sole Proprietorships or LLCs

You can run a Shopify store as a sole proprietorship or an LLC. If you opt to form an LLC or a corporation, it isn’t required to do so and you can still set up your Shopify store without these entities.

In order to set up the legal details of your Shopify store, you will typically only need your social security number or tax identification number (TIN). Additionally, you may need to provide the following information:

  • Business name
  • Business address
  • Website URL
  • Email address

Benefits of Forming an LLC

Forming an LLC does come with certain benefits, such as:

  • Limited liability protection
  • Flexibility in management and ownership structure
  • Tax benefits


In conclusion, it is not necessary to form an LLC or a corporation to set up a Shopify store. However, there are certain benefits to doing so that may make it worthwhile. Ultimately, it is up to you to decide what is best for your business.