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SolutionDropshipping creates economic sales tax nexus in states you sell to, plus supplier-side liability exposure when products go wrong. LLC + multi-state sales tax + supplier contracts are the core stack.
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For dropshippers and online resellers
For Dropshippers · File.Business

Sell the product. We file the LLC and the sales tax.

Dropshipping looks simple from outside: no inventory, no shipping. The legal reality is more complex: you are a US retailer with multi-state sales tax exposure, supplier-side liability when products injure customers, and IP claims when suppliers ship knockoffs. We form the LLC, register sales tax in nexus states, set up supplier contracts, and connect Shopify or BigCommerce to your books.

Start your dropship LLC See the dropshipper bundle
Built for your use case 60-day money-back Cancel anytime
9,200+
Dropshippers served
$100k
Typical nexus threshold
Shopify
Integration
A+
BBB rated
$0
Free
formation service
51
Jurisdictions
filed in-house
220K+
Businesses
formed since launch
4.9★
Rating
8,200+ verified reviews
SOC 2 Type II · 2025 report 4.9 · 8,200+ reviews E&O Insured · carrier on request 51 Jurisdictions 220,000+ Formed
See disclosures + carrier names →
LLC + sales tax permitsWe register in every nexus state
Supplier contractsIndemnification + IP warranty
Product liabilityPartner brokers for coverage
The dropshipper bundle

Built for online resellers.

$0 + state fee Dropship LLC Liability protection from customer product claims and supplier disputes.
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Per state Multi-state sales tax Economic nexus kicks in at $100k revenue per state in most states. We register in each.
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Reseller permits Resale certificates Required to purchase from suppliers without paying sales tax on B2B side.
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Shopify + Stripe Multi-channel books Shopify, WooCommerce, Stripe revenue, supplier costs, ad spend, all categorized.
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Partner Dropship banking High-volume merchant accounts; supports multiple Stripe/PayPal integrations.
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Supplier MSAs Supplier contracts MSA + indemnification + IP warranty templates. Hold suppliers accountable.
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Partner Product liability Customer-injury claims from supplier products often hit YOU as seller of record. Coverage is essential.
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USPTO Store brand trademark Protect your store name from copycats and platform impersonators.
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How we set dropshippers up

From first sale to scaled operator.

01
LLC + EIN

Form the LLC. EIN issued same day. BOI filed.

Day 0
02
Banking + payment processors

Business bank account opened. Stripe, PayPal, Shopify Payments configured for the LLC.

Day 1
03
Resale certificates

Apply for resale certificates in your home state. Use these with suppliers to purchase tax-exempt for resale.

Week 1
04
Supplier contracts

MSA template with indemnification and IP warranty sent to your main suppliers.

Week 2
05
Multi-state nexus

As sales grow, sales tax nexus expands. We monitor and register in each new state once thresholds are crossed.

Ongoing
06
Compliance + scaling

Sales tax returns filed in every nexus state. Annual reports. BOI updates. New supplier contracts as the network grows.

Annual
See your situation here?The fastest path is to start. Five minutes, no credit card required.
Start your dropship LLC →$0 service fee
In their own words

How customers like you use the platform.

"I sold on Shopify and Amazon and had no idea I owed sales tax in 14 states. They filed in 11. I sleep again."
TV
Tessa VargasFounder, Pinecrest Goods
"Inventory financing through their partner opened up a season we would have missed. Funded in 11 days."
DP
Devin ParkFounder, Park Floors
"A trademark on our brand stopped the counterfeiters cold and opened up Brand Registry on Amazon."
RP
Reema PatelFounder, Saffron Lane (DTC home goods)
60day promise

The File.Business Promise

If we miss a deadline on a service you pay us to manage, we cover the penalty. If you change your mind within 60 days, we refund our fee in full. Your data stays yours, always.

60-day money-back Penalty-free filings Cancel anytime
FAQ

Common questions.

Is dropshipping legal?
Yes, when done with proper supplier contracts, accurate product descriptions, and compliance with FTC truth-in-advertising rules. Pure arbitrage from major marketplaces (e.g., scraping Amazon listings) violates many platform terms of service.
Does dropshipping create sales tax nexus?
Yes. Economic nexus rules apply the same to dropshippers as to inventory-holding sellers. Cross $100k in sales in a state (or 200 transactions in most states) and you owe sales tax there.
Who is liable if a supplier ships a defective product?
You are, as seller of record. The customer transacts with you, not the supplier. This is the central legal risk of dropshipping. Supplier contracts with indemnification + product liability insurance are the standard defenses.
Do I need product liability insurance as a dropshipper?
Strongly recommended. Coverage is typically affordable ($500-$2,000/year) and protects against the customer-injury risk that suppliers may not absorb.
What is a resale certificate?
A state-issued certificate that lets you purchase inventory for resale without paying sales tax. You collect sales tax from the end customer instead. We file resale certificate applications in your home state.
Should I form in Wyoming or my home state?
Most dropshippers form in their home state. Wyoming is occasionally used for additional asset protection layering, but adds foreign qualification cost in home state.
What about international suppliers?
International suppliers are common in dropshipping. Customs duties, import compliance, and product safety standards (CPSC, FDA where applicable) are your responsibility as the US seller of record.
How do I handle chargebacks and returns?
Returns flow back to you, not the supplier. Build returns into supplier contracts where possible. Chargebacks hit your payment processor; your liability protection comes from the LLC.
Should I trademark my store name?
Yes, once revenue is meaningful. Federal trademark stops copycats and Amazon Brand Registry-equivalent platforms. $249 service fee + USPTO filing fee.
Do you serve cannabis, adult-content, or firearms dropshipping?
No. File.Business does not service dropshipping operations in these industries. See our Acceptable Use Policy.

Start your dropship LLC.

Tell us a few details. We file with the state, obtain your EIN, and set up the bundle.

Start your dropship LLCTalk to a specialist

File.Business does not service cannabis, adult-content, or firearms industries. See our Acceptable Use Policy.

$129/yr Compliance Annual Filings · penalty-free

On the $129/yr Compliance Annual Filings plan, we cover state late fees.

When you autofile your annual report through the $129/yr plan and we miss the deadline, we pay the state's late fee. The guarantee applies to that specific plan and the filings it includes. Other File.Business services are billed at the prices on this page.

See compliance plans →
Form your business for $0Start →
File.Business is a private business filing and compliance service. We are not a government agency and are not affiliated with any Secretary of State office. You may file directly with the appropriate state agency. SOC 2 Type II audited. 220,000+ businesses formed since 2017.