Shopify Requirements for US and Non-US Sellers: Formation & Compliance Guide 

Shopify isn’t just an e-commerce platform anymore; it’s the infrastructure behind the world’s most disruptive brands. 

With 4.8 million+ stores worldwide and over $235 billion in total sales, it’s where modern brands are born, scaled, and acquired.

If you’re eyeing a slice of that pie, whether you’re a US-based founder or an international seller, there’s one critical question: 

How do you legally launch and operate a Shopify business, especially if you’re outside the US?

While launching a Shopify store takes minutes, building a compliant, investor-ready business, especially as a non-US founder, takes more than just ambition. That’s why we created this guide, straight from the experts at doola. 

We’ll break down Shopify requirements for US and non-US sellers what it really takes to go from product idea to legit US business, with every legal, financial, and compliance box checked along the way.

Because doola is for do’ers like you! We don’t just help you launch a Shopify store, we build your business the right way, from day one.

Let’s go global and turn your idea into a borderless brand.

Why Selling on Shopify Is a Smart Move for E-Commerce Entrepreneurs

More than 4.8 million businesses worldwide rely on Shopify, not just to build a store, but to scale with speed, compliance, and confidence.

Here’s why e-commerce sellers trust it to power their online sales:

• Shopify commands 28% of the US e-commerce platform market share (Statista, 2024).

• In 2023, Shopify merchants generated over $235 billion in global sales.

• Shopify’s plug-and-play tools empower solopreneurs, side-hustlers, and full-blown ecommerce moguls alike.

With built-in features for inventory, payments, mobile optimization, and third-party integrations, Shopify doesn’t just help you launch; it helps you scale, without hiring an army of developers.

🔖 Related Must-Read: Top 10 Shopify Stores in 2025: Inspiring E-Commerce Success Stories

Shopify Requirements for US Sellers

Before your first product hits a customer’s cart, you’ll need to make sure your business is built on a rock-solid legal and compliance foundation. 

Because selling on Shopify from the US isn’t just about setting up a store; it’s about setting up a legitimate, trustworthy business that can grow without friction.

Let’s get you started.

Your Legal & Compliance Checklist

Here’s what you’ll need to legally launch and operate your Shopify store as a U.S.-based entrepreneur:

Requirement	Description
1. EIN (Employer Identification Number)	Issued by the IRS, this is like a Social Security number for your business.
2. Business Formation	LLC vs. Sole Proprietorship (an LLC offers liability protection and is preferred for most e-commerce sellers).
3. US Business Address and Phone Number	Needed for registration, customer trust, and payment gateways.
4. Business Bank Account	Required to separate personal and business finances, a must for tax compliance.
5. Sales Tax Compliance	Based on state nexus. You may need resale certificates if working with suppliers.
6. Payment Gateways Setup	Stripe, Shopify Payments, or PayPal: each has identity and tax documentation requirements.

Once you know the requirements, the next decision is how to get them done. Go the DIY route? Or let an expert team handle it for you?

DIY vs. Done-for-You With doola

Building a US business from the ground up is doable, but it’s risky, messy, and time-consuming. Signing up for doola’s services, on the other hand, means having a strategic partner who knows the terrain, handles the paperwork, and keeps you compliant while you scale.

Here’s what that difference really looks like when it comes to building your business the right way:

Action Item	Do It Yourself	With doola
1. LLC Formation	Research, file, wait	One-click setup with expert support
2. EIN	Apply via IRS (can take weeks).	doola handles it, even if you’re abroad.
3. Bank Account	Requires US presence	Open remotely via Mercury.
4. Tax Compliance	Self-manage (risky)	Compliance tools + real-time support

📌 Tip: Book a free demo with doola to see how we streamline every step.

Shopify Requirements for Non-US Sellers

If you’re selling on Shopify from outside the US, you’re not alone, and you’re definitely not out of reach. In fact, over 45% of Shopify merchants operate internationally. 

Yes, You Can Sell in the US Without Living There! 

However, to legally sell to US customers and unlock the full power of Shopify Payments, you’ll need to form a US-based business. That means getting your legal, financial, and compliance ducks in a row, no matter where you call home.

Why Form a US LLC as a Non-Resident Shopify Founder?

While anyone can technically open a Shopify store, forming a US LLC instantly positions you as a serious, trustworthy player in the eyes of customers, partners, and platforms alike. 

Here’s why thousands of global founders form a US LLC to power their Shopify business:

✅ Boosts Customer Trust and Brand Perception

In the world of e-commerce, trust is everything. A US LLC gives your brand the credibility and legitimacy that consumers subconsciously look for—especially in competitive marketplaces.

Example:

Imagine two Shopify stores: one shows a US business address with secure payment options, the other looks like a dropshipper with no verified business info. 

Which one would you buy from? The credible one with an LLC tag, right? Exactly what your customers are also looking for.

✅ Unlocks Access to Shopify Payments and Stripe

Many global entrepreneurs hit a frustrating wall when they try to set up Shopify Payments or Stripe. These platforms require a US-based legal entity and US bank account. 

Without these tools, you’re stuck with limited payment gateways and higher transaction fees.

With a US LLC + EIN + Business Bank Account, you can:

• Seamlessly integrate Shopify Payments, Stripe, and PayPal

• Reduce friction at checkout with trusted gateways

• Get faster payouts and lower processing fees

doola’s Pro Tip For the Do’ers: Stripe only works with US LLCs that have a valid EIN and US bank account. doola can help you set that up from anywhere in the world.

✅ Simplifies Tax Filings and Protects You Legally

Running a business without a legal entity can quickly become a paperwork and tax headache. A US LLC not only separates your personal liability from your business operations, but it also simplifies your annual tax obligations.

Here’s how it helps:

• LLCs offer pass-through taxation (profits “pass through” to you and are only taxed once, depending on US connection)

• Easier to file federal taxes and get 1099 forms from platforms like Shopify and Stripe

• Keeps your personal assets protected in the event of a dispute or lawsuit

Now that you know why a US LLC is a game-changer, let’s walk through the exact setup non-resident founders need to hit the ground running with their Shopify stores.

🧾 Your Non-Resident Shopify Seller Checklist

Whether you’re in London, Lagos, or Lahore, these are the key requirements to legally operate a US-registered Shopify store from abroad:

Requirement	Description
1. Form a US LLC	No need to live in the US, many choose Delaware/Wyoming for low fees.
2. Get an EIN (Tax ID)	Required to open a business bank account and register for taxes.
3. Apply for ITIN (if applicable)	Needed if you file US tax returns or receive income directly.
4. Open US bank account	Use fintech-friendly options like Mercury or Wise.
5. Get a US business address	Use a virtual mailbox for legal documents and shipping.
6. Understand US vs local tax	You may still owe taxes in your home country. Consult a tax advisor.

The top international sellers consider doola as the one-stop solution for global founders, not only because it fulfills the Shopify requirements for US and non-US sellers alike. But also because of the following tailored services it offers:

Step	With doola
1. Form your US LLC	✔️ Done-for-you
2. EIN for non-residents	✔️ We handle the IRS requirements
3. US business bank account	✔️ Remote-friendly setup
4. Virtual mailbox setup	✔️ Instant digital mailbox
5. Stay compliant year-round	✔️ Ongoing tax & compliance support

Explore doola’s pricing and plans and launch with confidence, no matter where you are in the world.

🔖 Related Must-Read: How to Use Shopify Payments as a Non-US Resident With an E-commerce LLC Business?

Tax & Compliance Considerations for E-Commerce Founders

E-commerce and digital founders often think they’re off the tax hook, until a surprise notice arrives. Whether you’re selling eBooks, templates, or SaaS subscriptions, always remember:

Digital doesn’t mean exempt. 

In this section you’ll learn what to watch for, what can get you in trouble, and how to keep your compliance as streamlined as your product.

Let’s start with the types of taxes and potential triggers you should be wary of:

Tax Type	Applies To	Trigger
Federal Income Tax	LLC income (if US-connected)	Profit from US operations
State Income Tax	Varies by state	Nexus (physical or economic presence)
Sales Tax	Most US states	Economic nexus or physical presence
International Tax	Your home country	Check double taxation treaties

Book a demo with doola to understand state-wise regulations and stay compliant year-round.

Real-World Example: Sales Tax Compliance

Let’s say you’ve had a good month, and your Shopify store generates $20,000 in sales. You’re selling custom mugs, and your business is thriving in Texas. But here’s where the rules get tricky:

• Texas has a sales tax rate of 6.25%, but that’s just the start. Depending on the type of sale, your total tax obligations might be higher. For example, local taxes in certain cities can push the rate to 8.25%.

• Now, Texas also has economic nexus rules. If your sales exceed $500,000 in a 12-month period, you must collect and remit sales tax to the Texas Comptroller. In this case, you’ve sold $20K in mugs to Texas residents. No problem, right?

Wrong! if you cross the threshold of $500K in total sales to Texas customers, you’re now legally obligated to collect the applicable sales tax on every order. 

Failing to do so could result in penalties or audits that could slow down your growth. So, let’s calculate what this looks like:

• Total sales from Texas = $20,000

• Sales tax rate = 8.25% (including local taxes)

Sales tax you owe = $20,000 x 8.25% = $1,650

Now, you must remit this $1,650 to the Texas Comptroller to avoid penalties. Miss the deadline? The state could impose fines or interest on the overdue amount, which will quickly add up.

Knowing the top e-commerce tools is step one, but mastering how (and when) to use them is what sets successful e-commerce founders apart.

Let’s walk through how to leverage them smartly and sidestep the tax traps that trip up most online store owners.

🔖 Related Must-Read: How to File Sales Tax Returns: A Step-by-Step Guide for Business Owners

Top 7 Mistakes to Avoid When Starting Your Shopify Store

Starting your Shopify store can feel like setting off on an exciting new adventure, but without the right strategy, it can also feel like you’re walking right into a series of potential pitfalls. 

Avoiding these seven common mistakes can set you up for long-term success, ensuring your store runs smoothly, efficiently, and legally from day one.

Mistake #1: Launching Without Legal Setup

One of the biggest rookie mistakes is rushing to launch your store before setting up your legal structure.

Operating without an LLC (Limited Liability Company) or business registration can expose you to personal liability and make your business appear less professional.

The Consequences:

• Legal Liability: Without proper business formation, your personal assets could be at risk if your business faces legal issues or debts.

• Tax Troubles: Without the right setup, tax filing can become a nightmare, and you may miss out on valuable tax deductions.

• Lack of Trust: Customers and suppliers often expect a level of professionalism that comes with a legally established entity.

The Right Move:

• Set Up an LLC to protect your personal assets and enjoy tax flexibility.

• Open a business bank account to separate personal and business finances, ensuring smooth operations and clear financial records.

Mistake #2: Ignoring Tax Responsibilities

Many new entrepreneurs assume Shopify will handle all the tax compliance. Unfortunately, that’s not the case.

Tax laws vary by state, country, and even the type of product you’re selling, and failing to stay on top of these can lead to penalties, fines, and audits.

The Consequences:

• Penalties & Interest: Failing to remit the correct sales tax can result in hefty fines and interest charges from tax authorities.

• Audits: Not keeping proper records or underreporting income can trigger an audit, putting your business under intense scrutiny.

Let’s take a look at the penalties and interest rates for sales tax non-compliance by state and product types:

State	Taxable Goods	Sales Tax Rate	Late Filing Penalty	Late Payment Interest
1. California	Clothing items, electronics goods, and accessories	7.25%	10% of tax due, min $50	0.5% monthly (6% annually)
2. Texas	Apparel & home and digital goods	6.25% (local up to 8.25%)	5%–10% of total tax owed	1% monthly (12% annually)
3. New York	Apparel (>$110), electronics items	4% state + local up to 8.875%	10% of unpaid tax or $100 minimum	0.5% monthly (6% annually)
4. Florida	Jewelry, furniture, and digital goods.	6% base (local adds ~1.05%)	10% or a minimum penalty of $50.	0.833% monthly (10% annually)
5. Illinois	Consumer goods, cosmetics	6.25%	2–20% (depends on amount and delay)	0.5% monthly (6% annually)
6. Washington	Apparel and digital products	6.5% (up to 10.5% w/ local)	5% of tax owed after 30 days delay	1% monthly (12% annually)

📌 Note: Penalties may vary depending on how late the payment is and whether the error is intentional or due to negligence.

The Right Move:

• Get Educated on Sales Tax: Understand your economic nexus, sales tax obligations, and when to collect taxes.

• Tax Automation: Use tools like doola, TaxJar or Avalara to ensure compliance and keep tax filings on track.

Mistake #3: Using Personal Bank Accounts

Commingling personal and business funds is not only sloppy—it’s a fast track to trouble. Keeping your finances separate is crucial for legal, tax, and financial management reasons.

The Consequences:

• Tax Nightmares: Mixing personal and business funds can complicate your tax filings and increase the risk of missing deductions.

• Audit Red Flags: Commingling finances raises red flags with tax authorities and auditors.

• Poor Financial Tracking: Without separate accounts, you’ll struggle to track your business cash flow and make sound financial decisions.

The Right Move:

• Open a Business Bank Account: This simplifies your bookkeeping and makes tax season a lot less stressful.

• Set Up Clear Financial Systems: Establishing dedicated accounts helps you maintain clean, audit-proof financials.

Mistake #4: Not Optimizing for Mobile

With over 70% of global e-commerce traffic coming from mobile devices, failing to optimize your Shopify store for mobile is a massive missed opportunity.

The Consequences:

• High Bounce Rates: Customers won’t stick around if your site isn’t mobile-friendly, leading to lost sales and a bad reputation.

• Poor Conversion Rates: A non-responsive store can frustrate potential buyers, decreasing your conversion rate and ultimately your bottom line.

The Right Move:

• Use Mobile-Optimized Themes: Shopify offers themes that automatically adjust to mobile devices.

• Test Your Store on Different Devices: Ensure your product pages, checkout process, and images display properly across mobile and tablet screens.

Mistake #5: Choosing the Wrong Niche

Launching a Shopify store based on what “feels right” or following gut instinct can lead you into a crowded market with minimal demand. Your product niche should be data-driven, not just inspired by personal interest.

The Consequences:

• Unclear Target Audience: Choosing a niche without proper market research can result in a lack of direction and struggle to gain traction.

• Low Sales Potential: If your niche isn’t well-defined, you might find yourself fighting for visibility in a saturated market.

The Right Move:

• Conduct Market Research: Use tools like Google Trends, social media listening, and competitor analysis to find niches with demand.

• Look for Gaps: Identify underserved areas where you can position your brand as a unique solution.

Mistake #6: Neglecting SEO & Store Speed

Building a beautiful Shopify store is only part of the equation; if no one can find it or use it efficiently, your efforts are wasted.

Neglecting SEO and optimizing store speed means fewer visitors, and ultimately, fewer sales.

The Consequences:

• Poor Search Rankings: Without proper SEO, your store won’t rank on search engines, leaving you buried under a sea of competition.

• Slow Load Times: If your store takes longer than 3 seconds to load, 53% of visitors will abandon it, hurting both traffic and conversion rates.

The Right Move:

• Focus on SEO from the Start: Use relevant keywords in your product descriptions, titles, and meta tags. Also, optimize images and URLs to improve search rankings.

• Speed Up Your Site: Compress images, remove unnecessary apps, and use Shopify’s built-in tools to improve store speed.

Mistake #7: Skipping Customer Support Setup

Great customer service is non-negotiable. A poorly handled customer inquiry can cost you trust and sales, while an excellent customer experience can build brand loyalty and repeat business.

The Consequences:

• Lost Trust: Delayed or unhelpful responses will make customers frustrated, diminishing your brand’s reputation.

• Decreased Sales: If your customers feel neglected, they’ll take their business elsewhere.

The Right Move:

• Set Up Customer Service Channels: Use Shopify’s built-in customer service features, or integrate tools like Zendesk or Gorgias for faster response times.

• Provide Clear FAQs: Anticipate common customer questions and provide detailed answers on your store’s FAQ page to resolve issues quickly.

Now that you’ve learnt the common mistakes and how to avoid them, it’s time to check if you’re meeting the Shopify requirements for US and non-US sellers.

🧾 Are You Shopify-Ready? The Complete Checklist

Before you launch, let’s make sure your business is built to scale, not just sell.  Here’s a checklist to make sure your Shopify store is in top shape before you hit “go live.”

Step	Done?	Notes
Legal Setup (LLC, EIN, etc.)	✔️ / ❌	Double-check your legal structure and registration.
Business Bank Account	✔️ / ❌	Ensure all finances are separate
Sales Tax Compliance	✔️ / ❌	Register for sales tax and use tax tools
Mobile Optimization	✔️ / ❌	Test on various mobile devices
SEO Setup	✔️ / ❌	Check keyword use and meta tags
Customer Service Channels	✔️ / ❌	Set up your contact forms or live chat

Launching a Shopify store is a multi-step process, but with doola, every box on this checklist is covered. From business formation to ongoing tax compliance and customer support setup, doola is your partner in success. 

Ready to streamline your setup and avoid these costly mistakes? Book a free demo with doola today to get started.

Launch Smarter, Scale Faster: Build With doola Today!

Launching a US business should never feel like navigating a maze of paperwork, regulations, and legal complexities.

Yet for US and non-US sellers, that’s often the default: weeks lost deciphering IRS forms, struggling to open a US bank account, or missing compliance deadlines that shouldn’t have been yours to worry about in the first place.

doola changes that.

From forming your LLC and securing your EIN, to opening a remote US bank account and staying tax-compliant, we handle the US back office, so you can go all in on growth.

Let’s break down what your launch could look like, the doola way:

✔️ Step 1: Start Your LLC

Tell us your name and your business idea. That’s it. We’ll file the paperwork, fast-track approvals, and set up your LLC without legal complexities or guesswork.

✔️ Step 2: Get Your EIN + US Bank Account

Even from across the world, we’ll handle your IRS registration (aka your EIN) and connect you with a US bank that welcomes residents and non-residents alike. 

✔️ Step 3: Stay Compliant with Latest Regulations

Once you’re live, we keep you covered with automated compliance reminders, expert bookkeeping, and tax support. This ensures you’re never caught off guard by deadlines, new tax laws or missing forms.

Let’s now compare and contrast what handling all of the above tasks looks like with vs. without doola’s support.

Task	Without doola	With doola
1. LLC Formation	Confusing forms, legal jargon, unexpected  delays	One-click setup, guided by experts
2. EIN + ITIN	Weeks of paperwork, IRS wait times	We handle it for you, fast & simple
3. US Bank Account	Nearly impossible for non-US residents	Remote-friendly setup with fintech partners
4. Taxes & Compliance	You’re on your own (and at risk)	Ongoing reminders, tax and bookkeeping support

Clearly, the DIY route is complex and shifts your attention from the real work: growing your business. doola’s services, on the other hand, take these time- and resource-draining tasks off your plate. 

With doola, you get a full-stack launch kit tailored for global entrepreneurs. Here’s what it includes:

• US Business Bank Account Setup

• Compliance Calendar & Automated Reminders

• Bookkeeping and Tax Support to Stay Audit-Ready

So, whether you’re launching a Shopify store from Seoul, scaling a SaaS startup from São Paulo, or selling digital products from Dubai, doola equips you with the infrastructure to operate like a U.S. business, without borders or bottlenecks.

Schedule a demo and get ready to go global with doola!

FAQs

Can I sell on Shopify without an LLC?

Technically, yes. But having an LLC adds legal protection, professionalism, and access to tools like Shopify Payments.

Do I need a US address as a non-resident?

Yes, for legal formation and receiving official mail. A virtual mailbox will also work.

How long does it take to start selling?

With doola, you can be formation-ready in as little as 1-2 weeks.

Can doola handle my taxes too?

Absolutely. We offer bookkeeping, compliance help, and access to expert tax professionals.

Will Shopify accept my local bank account?

No, you need a US business bank account to access Shopify Payments and Stripe. doola can help you open one remotely.