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SolutionDropshipping creates economic sales tax nexus in states you sell to, plus supplier-side liability exposure when products go wrong. LLC + multi-state sales tax + supplier contracts are the core stack.
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For dropshippers and online resellers
For Dropshippers · File.Business

Sell the product. We file the LLC and the sales tax.

Dropshipping looks simple from outside: no inventory, no shipping. The legal reality is more complex: you are a US retailer with multi-state sales tax exposure, supplier-side liability when products injure customers, and IP claims when suppliers ship knockoffs. We form the LLC, register sales tax in nexus states, set up supplier contracts, and connect Shopify or BigCommerce to your books.

Built for your use case 60-day money-back Cancel anytime
9,200+
Dropshippers served
$100k
Typical nexus threshold
Shopify
Integration
A+
BBB rated
How we set dropshippers up

From first sale to scaled operator.

01
LLC + EIN

Form the LLC. EIN issued same day. BOI filed.

Day 0
02
Banking + payment processors

Business bank account opened. Stripe, PayPal, Shopify Payments configured for the LLC.

Day 1
03
Resale certificates

Apply for resale certificates in your home state. Use these with suppliers to purchase tax-exempt for resale.

Week 1
04
Supplier contracts

MSA template with indemnification and IP warranty sent to your main suppliers.

Week 2
05
Multi-state nexus

As sales grow, sales tax nexus expands. We monitor and register in each new state once thresholds are crossed.

Ongoing
06
Compliance + scaling

Sales tax returns filed in every nexus state. Annual reports. BOI updates. New supplier contracts as the network grows.

Annual
In their own words

How customers like you use the platform.

"I sold on Shopify and Amazon and had no idea I owed sales tax in 14 states. They filed in 11. I sleep again."
TV
Tessa VargasFounder, Pinecrest Goods
"Inventory financing through their partner opened up a season we would have missed. Funded in 11 days."
DP
Devin ParkFounder, Park Floors
"A trademark on our brand stopped the counterfeiters cold and opened up Brand Registry on Amazon."
RP
Reema PatelFounder, Saffron Lane (DTC home goods)
FAQ

Frequently asked questions.

Is dropshipping legal?
Yes, when done with proper supplier contracts, accurate product descriptions, and compliance with FTC truth-in-advertising rules. Pure arbitrage from major marketplaces (e.g., scraping Amazon listings) violates many platform terms of service.
Does dropshipping create sales tax nexus?
Yes. Economic nexus rules apply the same to dropshippers as to inventory-holding sellers. Cross $100k in sales in a state (or 200 transactions in most states) and you owe sales tax there.
Who is liable if a supplier ships a defective product?
You are, as seller of record. The customer transacts with you, not the supplier. This is the central legal risk of dropshipping. Supplier contracts with indemnification + product liability insurance are the standard defenses.
Do I need product liability insurance as a dropshipper?
Strongly recommended. Coverage is typically affordable ($500-$2,000/year) and protects against the customer-injury risk that suppliers may not absorb.
What is a resale certificate?
A state-issued certificate that lets you purchase inventory for resale without paying sales tax. You collect sales tax from the end customer instead. We file resale certificate applications in your home state.
Should I form in Wyoming or my home state?
Most dropshippers form in their home state. Wyoming is occasionally used for additional asset protection layering, but adds foreign qualification cost in home state.
What about international suppliers?
International suppliers are common in dropshipping. Customs duties, import compliance, and product safety standards (CPSC, FDA where applicable) are your responsibility as the US seller of record.
How do I handle chargebacks and returns?
Returns flow back to you, not the supplier. Build returns into supplier contracts where possible. Chargebacks hit your payment processor; your liability protection comes from the LLC.
Should I trademark my store name?
Yes, once revenue is meaningful. Federal trademark stops copycats and Amazon Brand Registry-equivalent platforms. $249 service fee + USPTO filing fee.

Start your dropship LLC.

Tell us a few details. We file with the state, obtain your EIN, and set up the bundle.

File.Business does not service cannabis, adult-content, or firearms industries. See our Acceptable Use Policy.

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How it works

How we deliver, end-to-end.

Four-step path from request to confirmation. State and IRS turnaround varies; our steps run in parallel where possible to compress the timeline.

1

Intake + scope

You tell us what you need through a short intake form (or a call for complex matters). We confirm scope, surface any gating issues (deadlines, missing documents, entity status), and quote any state fees that pass through at cost.

2

Prepare + verify

Our specialists draft the filing, verify entity details against state databases, run internal QA, and route any items needing your sign-off. You see drafts before anything gets submitted.

3

File with the authority

We submit directly to the state Secretary of State, FinCEN, IRS, USPTO, or whichever authority your filing requires. We pay state fees at cost and track the submission identifier in your account.

4

Confirmation + vault

Stamped certificate, IRS notice, or filing receipt arrives in your SOC 2 encrypted document vault the moment we receive it. Next filing deadline auto-added to your compliance calendar where applicable.

Start your business in the next 5 minutes.

No state-fee markup. Pay only the state fee. 60-day money-back guarantee.

No state-fee markup 60-day money-back Cancel anytime