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LLCs for Ebay Businesses

As an Ebay seller of vintage goods or unique art and crafts, turning your hobby into a job means a lot of hard work—marketing, order fulfillment, customer service and more.

With so much to do, you might think changing your Ebay business to a formal limited liability company (LLC) is just an unnecessary chore requiring an intimidating amount of work. But it’s easier than you think, and potentially one of the smartest choices you can make for your business.


Benefits of an Ebay Business LLC

Offering protection for personal liability and privacy, LLCs are great for all kinds of small business owners, and Ebay entrepreneurs are no exception! The many benefits of LLCs include:

The main advantage of an LLC is the limited personal liability it provides. An LLC’s owner is generally not personally liable for debts incurred by the business, including bankruptcies and legal judgments. As your Ebay business grows and becomes more complex, you may be exposed to more risk as owner—but forming an LLC will give you the security of knowing your personal assets are safe if your Ebay business is sued.

And liability protection works both ways! Under an LLC, your Ebay business will be protected in the event you experience personal financial difficulties.

Under a sole proprietorship, you and your business are legally the same entity, and by default, your business name is your name. With an LLC, you can give the business its own legal name, and keep yours as private as you want.

In addition, when running a home-based business, your address will be easy to find on public records, leaving you at risk of unsolicited mail—or even unexpected visitors. But by creating an LLC for your Ebay operation through Northwest, you can protect that information by using our address on your business formation records, and take advantage of mail forwarding and virtual office services to ensure the legal notices you need arrive without any unwanted extras.

Being an LLC can add a professional tone to your Ebay business. Compare “Andrew G. Strack DBA Strack’s Craft Shack” with “Strack’s Craft Shack LLC,” and you get the idea. Adding “LLC” to your company name can lend your Ebay business a sense of legitimacy to your customers—and with a competitive online marketplace, anything that helps set you apart from the pack is a good investment.

And if you need to raise capital in the future, forming an LLC may boost your odds. Most investors want reassurance that they are putting their money into a “real” business, not a part-time hobbyist venture, so the veneer of legitimacy that comes from being an LLC could pay real dividends for your Ebay business!

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