A Pakistani entrepreneur seeks guidance on launching a Shopify dropshipping business targeting US, UK, and European markets without forming an LLC, primarily due to PayPal’s unavailability in Pakistan and budget constraints for US LLC registration.
Key Feasibility Points:
Dropshipping without an LLC is possible using sole proprietorship status and local/international payment processors
Can operate using personal details and Pakistani banking accounts
Advantages of Operating Without LLC:
Lower startup costs (no registration/maintenance fees)
Simpler setup process with faster launch timeline
Complete business control as individual owner
Disadvantages of Operating Without LLC:
No personal liability protection for legal issues
Reduced credibility with potential customers and suppliers
More complex personal tax obligations
Payment processor limitations in Pakistan
Concerns with Alternative Payment Processors:
Lower customer trust in unfamiliar payment options among Western buyers
Potentially higher transaction fees compared to PayPal/Stripe
Possible integration challenges causing checkout friction
Multi-currency handling inefficiencies leading to conversion delays
Community recommends checking Shopify’s supported payment gateways for the region to identify viable alternatives.
Summarized with AI on October 31.
AI used: claude-sonnet-4-5-20250929.
I’m from Pakistan and I’m planning on starting on Shopify dropshipping and I plan on targeting the US, UK and European markets, I’m confused as to how I should proceed because there is no PayPal available in Pakistan, however there are other payment processors, I can however gain access to PayPal by registering a LLC in the US but that would exceed my budget, so I want to know if:
Is it possible to start dropshipping without a LLC from Pakistan.
What are the pros and cons of starting without a LLC
Are there any disadvantages to using payment processors other than PayPal and Stripe on the client side
I’d appreciate it if any experienced merchant could help me out on this.Thanks!
Risks and Benefits of Pakistani Non-LLC Dropshipping 1. Can one export goods directly from Pakistan through dropshipping if he does not have an LLC?
Yes, starting a dropshipping business even without an LLC is possible. By just using your normal self particulars and operating banking accounts in Pakistan you can be a sole entrepreneurship that leverages on shopify as well as other payment processors found locally or internationally.
2. What are the advantages and disadvantages of starting without LLC? Positive sides:
— Less initial investment required because there will be no need to pay for registration of LLC and its further servicing.
— It’s easier to establish that allows you start promptly without any legal documents.
— You will have absolute say so in your business as an individual owner.
Negatives include:
— Your own property can be taken away by law if you get into any problem with no exception.
— There might be low trustworthiness: Some clients or suppliers would like to deal only with registered companies.
Complexity of tax: It would be necessary for you to handle taxation matters at personal level which might lack some advantages associated with corporate form of business organization.
3. Drawbacks Associated With The Use Of Online Payment Methods Apart From PayPal And Stripe On The Buyer Side
— They don’t know much about these processors in US, UK, Europe – this may make them suspicious and less trusting.
— Some options have costly charges than PayPal or Stripe posing a threat to net earnings.
It may not flow smoothly: Integration problems may arise when using unpopular gateways on Shopify leading to poor customer experience and non-completion of purchases.
Money units Clients could experience conversion expenses/delays where processor inefficiency handles multi-currency transactions.