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Hello!
I live in South America but have a US-based company and US bank account. I tried Etsy before but they didn't allow me to set up a store because they don't 'support payment options for the country I am in' even though I have a us compnay and bank account. I believe it was due to tax purposes, they didn't have the infrastructure to support tax compliance for people trying to sell from my country. Will I run into any sort of issue with Shopify given I am a citizen of and resident in my country which is where I'll operate the store from?
Thankful for any guidance on the matter
Hi @TierraCllctn, Short answer is No, Shopify won’t give you the same kind of friction Etsy did. You can run a Shopify store from South America with a U.S.-based company and bank account. People do it every day. But, there are important caveats you need to account for upfront:
1. US LLC + US Bank Account: Shopify doesn’t care where you live nearly as much as where your business is based and how you’re handling payments and taxes. Your U.S. company gives you a big leg up.
2. Shopify Payments Optional: Shopify Payments (their built-in processor) has residency restrictions. You likely won’t qualify to use Shopify Payments from your current country. But that’s not a dead-end, you can still use third-party gateways.
3. No Shopify “Ban” for Operating Abroad: They’re a SaaS platform; They don’t block store creation based on where you log in or where your IP is. (While Shopify does have IP bans for suspicious or fraudulent activity, these are unrelated to normal store operation from abroad and do not affect legitimate business owners with proper documentation.)
Since your company is U.S.-based, you’ll need to file U.S. taxes for the LLC (even if it’s pass-through), possibly collect sales tax depending on where you’re shipping within the U.S. (based on nexus rules), and stay compliant with your local tax authority, which may expect reporting on your foreign income. Proper documentation and compliance with Shopify’s verification requirements and tax laws are essential to avoid payment holds or account suspensions.
Verdict: You’re good to go. Just set it up smartly, pay your taxes, and don’t try to hide where you live. That's all. If you find it helpful, please like and mark Solved.
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