Do you know you could run an online business in the USA without forming an LLC (Limited Liability Company)?
This article will give an insight into business structures you could start without forming an LLC. We are further going to see other essential requirements needed for a successful business operation without LLC.
1. Sole Proprietorship
What it is: This is the simplest business structure. It’s just you running your business without any formal legal setup.
How to start: You can start working right away without any registration, though you may need a local business license.
Pros: It’s easy and cheap to start.
Cons: You are personally responsible for any debts or legal issues.
2. Doing Business As (DBA)
What it is: A DBA allows you to operate your business under a different name than your own.
How to get it: You register your DBA with your state or county.
-Pros: Lets you create a business identity without forming an LLC.
Cons: Doesn’t provide personal liability protection.
3. Online Platforms
What it is: You can sell products or services through online platforms like Etsy, eBay, or Amazon.
How to start: Sign up as a seller on these platforms and start listing your products or services.
Pros: Easy setup with built-in customer base and tools.
Cons: Fees and less control over your business.
Basic requirements you will need even without LLC
1. Taxes
What you need to know: Even without an LLC, you must pay taxes on your business income. You can report earnings on your personal tax return using Schedule C (Form 1040).
2. Business License
Check local requirements: Depending on where you live, you may need a business license or permit, even if you don’t have an LLC. Check with your city or county government.
3. Insurance
Consider getting insurance: To protect yourself, consider business insurance to cover liabilities or damages.
Summary
You can definitely run an online business in the USA without an LLC by being a sole proprietor, using a DBA, or selling on online platforms. Just make sure to handle taxes, get any necessary licenses, and consider insurance for protection.