Eva Answers / Shopify

Do You Need a Business License to Open a Shopify Store?

Answered by Hai Mag, Founder & CEO, Eva Commerce, with 20+ years in eCommerce transformation, marketplace optimization, and AI-driven automation.

Last reviewed: October 29, 2026

Short answer: Not from Shopify. Shopify Payments’ U.S. setup asks for ID and tax details, not a business license, and you can sign up as an Individual with your SSN or ITIN and no EIN. Whether the law requires a license depends on your state, county, city and what you sell, and if you sell taxable goods you will likely need to register to collect sales tax.

What Shopify asks for, by business type (Shopify Payments, United States)

Business type you select	What Shopify asks for	Business license?
Individual (no EIN)	Legal name, date of birth, SSN or ITIN, U.S. residential address, email and phone	Not in the required list
Sole Proprietorship (with EIN)	The owner’s details above, plus registered name, EIN, business phone and business address	Not in the required list
LLC, partnership or company	An account representative’s details, registered name, EIN, business phone and address, plus anyone owning 25% or more (for multi-member LLCs, partnerships and companies)	Not in the required list; proof of business registration is one accepted proof of address
Any type, during review	Shopify may request more documents to verify identity and risk	Possible: a business license is one of the documents Shopify can ask for

How to check what your business actually needs

Separate Shopify’s rules from the law. Shopify Payments’ U.S. requirements do not list a business license. Whether you need one is set by your state, county and city and by what you sell.
Check your state. Shopify’s guide says only a handful of states have a statewide general business license: Alabama, Delaware, Hawaii and Nevada. The SBA says to check your Secretary of State’s website for state licenses and permits.
Check your city or county. The SBA notes local governments set their own licensing and permit rules, and home-based businesses can still be subject to zoning.
Check for federal permits. The SBA lists federally regulated activities such as alcohol, firearms and ammunition, and agriculture imports. Most stores selling ordinary goods are not on that list.
Register for sales tax if you sell taxable goods. Shopify’s guide says you will likely need to register with your state to collect sales tax, which some states call a seller’s permit.
Get an EIN if you need one. It is free from the IRS. The SBA warns not to use websites that charge a fee for it.

Exceptions

Regulated products. Shopify Payments cannot support some products even where they are legal, including cannabis, prescription drugs, tobacco, firearms and ammunition, and pseudo-pharmaceuticals with unverified health claims. Those sellers may need a third-party payment provider as well as any license their product requires.
Living outside the U.S. Individuals and Sole Proprietorships on U.S. Shopify Payments must live in the United States and have an SSN or ITIN. Other business types can use a passport instead.
U.S. territories. U.S. Shopify Payments supports business addresses in the 50 states and Puerto Rico only.
Trading under a different name. The SBA says most states require you to register a DBA if you use one, even when no general license applies.
Legal advice. Shopify Support says it cannot advise on legal, tax or compliance matters. Confirm local requirements with your city, county or an accountant.

How Eva handles this

Eva’s company formation and bookkeeping service sets up a U.S. LLC or C-Corp (state of formation, EIN, registered agent, operating agreement and U.S. banking) structured to meet Shopify Payments and Amazon Seller Central verification. It also covers sales tax: nexus analysis across U.S. states, registration, collection setup and monthly or quarterly filing.

Follow-up questions

Do I need an EIN to sell on Shopify?

Not to start. Shopify Payments in the US lets you sign up as an Individual with your SSN or ITIN if you do not have an EIN. If you have an EIN, Shopify asks you to pick the business type that matches it, such as Sole Proprietorship or LLC, and to enter the registered name exactly as it appears on your IRS documents.

Do I need an LLC to sell on Shopify?

No. Shopify Payments supports Individuals and Sole Proprietorships as well as LLCs, partnerships and companies. An LLC is a liability and tax choice, not a Shopify requirement.

Can Shopify ask me for a business license?

Yes. The Shopify Payments Terms of Service say Shopify may ask for extra information to verify your identity and assess risk, and list a business license among the examples, along with ID, invoices and reseller authorization.

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