If I am selling a service, do I need to have an LLC for e-commerce?

If you want to be taxed as an LLC, then yes.

assuming i wont be making much in the first year (<5-10k $$$) would it be appropriate to go w LLC right now? I see people selling shit on IG all the time.

You need to check for those minimums as they can change every year.

For example, currently for IRS I believe it's $8k, where in the past it was $10k for personal income at the federal level.

so if its less than 8k i dont have to report it?

Don't need the LLC if you want to sell goods under your own name.

If you want a bit of protection, have branding ideas and more then preparing/having a LLC or something similar is a good option.

Expenses and more are going to be with the LLC route. Care for it right and what you put into it will be yours to grow.

This post was edited by Sempervirens on Jun 27 2021 02:07am

For total individual income yes. Again, check the IRS website as these limits can change.

I have a logo rn that is almost trademarked idk why its taking so long but it got approved. The services I will be providing I don't think is very high risk d/t it being a mentorship program for students and shit like tutoring etc. However, I made a website and the e-commerce shit requires me to put a company name and license etc?


Thanks m8

Yes, you don't have to, but it does provide some protection to have payments be made to an entity instead of yourself and the corporate taxes are lower. You can then pay yourself via a wage.