Compliance for operating a US-Based store as a Non-US Resident/Citizen

Compliance for operating a US-Based store as a Non-US Resident/Citizen

Gasko
Visitor
1 0 0

Hello,

 

I'm currently in the process of establishing a new dropshipping store focused on the US market. As a non-US resident/citizen residing in the EU, I've established an LLC registered in the US. My country of residence is supported for Shopify payments, but I prefer to keep all business-related matters within the US. The LLC was facilitated by legal counsel in a US state, providing a US bank account, registered agent, and a physical mailing address within the state for tax-related correspondence. All LLC documentation is available.

 

Given the nature of the dropshipping model, warehousing and fulfillment will be outsourced to a third-party supplier. Consequently, I will not be conducting any physical operations within the US, nor will I have any associated bills (such as utilities or rent) from third parties in the US to provide to Shopify, if requested.

 

Before starting the development of my store on Shopify, I am keen to ensure full compliance with all legal & Shopify requirements. I aim to have all necessary documentation prepared in advance to mitigate any risks of payment restrictions, account suspensions, or store closures when Shopify's review team request documentation to verify the legitimacy of the business.

 

With the information provided, I kindly request guidance on whether I may proceed with operating a Shopify store, as well as a list of requisite documents I should have prepared. Any assistance, recommendations, or suggestions regarding the business structure would be greatly appreciated.

 

Thank you in advance!

Reply 1 (1)

DaisyVo
Shopify Partner
3437 393 475

Hi @Gasko 

I’ve gone through your situation carefully, and I totally understand your concern about ensuring full compliance before launching your Shopify store. Since you're a non-US resident with a US-registered LLC and want to keep all business matters within the US, you need to make sure everything aligns with both Shopify’s policies and US regulations to avoid payment issues or account restrictions.

Can You Operate a Shopify Store as a Non-US Resident with a US LLC?

Yes, you can operate a Shopify store under a US-registered LLC as a non-US resident, but you need to ensure your documentation is in place to satisfy Shopify’s verification requirements. Since Shopify Payments operates under strict compliance regulations, you may need to provide additional proof of business legitimacy.


Key Documents You Should Prepare

To prevent any issues with Shopify Payments, tax compliance, and general business operations, ensure you have the following:

  1. LLC Formation Documents – Your Articles of Organization and EIN (Employer Identification Number) issued by the IRS.
  2. US Business Address & Registered Agent Information – The address provided by your registered agent should match your business documents.
  3. US Bank Account Details – Ensure you have an active US business bank account for Shopify Payments and payouts.
  4. Operating Agreement – Some payment providers (including Shopify Payments) may request this to verify ownership.
  5. Tax Compliance (EIN & ITIN if Required)
    • Since you are not a US citizen, you typically don’t need an SSN but must have an EIN.
    • If you’re required to file taxes in the US, you may need an ITIN (Individual Taxpayer Identification Number).
    • If Shopify requests tax verification, be ready to submit your EIN confirmation letter from the IRS (CP 575).
  6. Supplier Agreement (for Dropshipping) – Since you’re not handling inventory yourself, Shopify may request proof of supplier relationships.
  7. Business License (if applicable) – Some states require a business license even for online businesses. Verify with your LLC’s registered state.

Potential Shopify Payment Issues

  • Shopify Payments may request proof of a physical presence in the US, such as utility bills or a lease. Since you don’t have these, Shopify may still approve your account if your LLC documentation, EIN, and US bank account are valid.
  • If Shopify Payments denies you due to residency concerns, you can still use third-party payment providers like Stripe, Payoneer, or Wise (ensure they support payouts to your country).

Final Recommendations

  • Before launching, reach out to Shopify Support and provide your documentation in advance to confirm compliance.
  • Consult a US tax professional to ensure you're compliant with federal and state tax regulations.
  • Have backup payment gateways in case Shopify Payments requests proof of physical presence that you can’t provide.

If you need any other assistance, feel free to ask, and I will try my best to support you.
Best regards,
Daisy.

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