The answer to this question depends on how your business operates and what you’re selling. But the basic answer is that no, you don’t need a DBA to use or sell on Shopify. Despite the fact that a DBA may not be required by Shopify, there are circumstances where you may want, or need, to register a DBA when selling on Shopify.
When Do I Need to File a DBA for Shopify?
You’ll want to file a DBA for Shopify in at least three situations. Not all of these situations apply to every seller, but it’s good to be aware of them in case your business operations change.
Your Business Name on Shopify Is Different from Your Official Business Name
Imagine your business’ official name is “Smith Electronics, LLC.” However, you carry out your business operations as “The Retro Video Game Shop” at your brick-and-mortar store and Shopify online store. In this case, you’ll need to file a DBA for “The Retro Video Game Shop.” This is because your official business name is different from your trade name (the business name you actually use). This name-matching requirement exists whether or not you use Shopify.
You Sell Products Regulated by the Government
To understand why this might require you to file a DBA when using Shopify, you should understand why DBAs need to be registered in the first place. This filing or registration requirement exists to protect consumers. Specifically, it’s to protect consumers from sellers who cause harm.
Should the consumer decide to take legal action against the seller, they’ll know who to sue. Or maybe the consumer wants never to buy another product or service from that seller again. If a DBA is registered, it makes it possible for the consumer to know if the “new” company they’re buying from later on is different from the original company that caused them harm. If a company sells something that could affect the health and safety of consumers, there’s a reasonable chance that the company may be required to file a DBA.
Which Products Are Regulated by the Government?
- Food
- Beverages
- Drugs
- Firearms
- Alcohol
- Health and wellness products or services
- Personal services
- CBD-based products
You Sell to International Customers
Countries that you sell to (other than your home country) might require international sellers to be registered with a DBA or have a business license. You’ll need to check with each country to know their requirements.
Do I Need a Business License to Sell on Shopify?
It depends. As is the case with a DBA, you generally don’t need a business license to sell on Shopify. Shopify allows individuals and sole proprietors to use their e-commerce and online small business services, whether or not they have a business license. That being said, there are two situations where you might need a business license.
The first situation exists if you want to sell a regulated product or service. Second, there might be a local law or regulation that requires you to have a business license. In other words, even if Shopify doesn’t require a business license, there’s a chance a law requires you to have a business license.
In case you need a DBA to sell something on Shopify, there’s a chance you’ll also need a business license to do so as well.
When Does my Shopify Name Need to Match my Business Name?
Your Shopify name doesn’t have to match your business name. But if it doesn’t, you’ll probably need to file a DBA. Put another way; your Shopify name must match your business’ legal name if you decide not to file a DBA.
Can a DBA Protect My Webshop’s name?
No, it can’t. Filing a DBA doesn’t convey any legal protections to your business’ name in the sense that it can stop someone else from taking your webshop’s name. If your Shopify storefront is “Acme Cooking Supplies” and you file a DBA for that name, in certain situations, someone else can still take it and use it for their business. If you want to protect your webshop’s name, you should consider trademarking it.
Conclusion
Using Shopify is a convenient way to sell your goods and services online. As long as your carry out your business using your business’ official name to sell non-regulated products and services, you don’t need to file a DBA. But if you want to conduct business using a name different from your business's legal name, you’ll likely need a DBA. You may also need a DBA if you use Shopify to sell products or services that are regulated by the government.