M3-2: Payments, Taxes & Fine Print
Payments, Taxes & Fine Print
So let’s talk about your business setup where Shopify is concerned. Shopify requires some basic business information. I’ve highlighted a few areas above from Shopify's Settings…
In Shopify’s “General” Settings you will need to enter your Legal Business Name. That means you will need to have your business setup before launching your Shopify store. Keep in mind your business name can be different than the brand name. It can actually be advantageous to have them be different, because some day down the road you will want to sell your business.
Typically you don’t sell your business, you sell your business assets. By keeping your brand(s) separate, you can maintain your company and build other brands with ease and sell them separately when the time is right. It’s always a good idea to think about your brand exit strategy early-on.
As an example, Nelson Wear (company) and sold off the Tat2X, iM Sports and Skin Guards brands. After selling the brands, I closed the Nelson Wear business since I wasn’t going to stay in the apparel business anymore.
In Shopify’s “Checkout” Settings you will define your store’s policies - privacy, terms of service and refund. We will be taking a deeper dive into each of them in the next slide.
In Shopify’s “Taxes” Settings you will need to setup your sales tax settings. Make sure you talk to a business accountant and the California Board of Equalization (BOE) to make sure you setup your sales tax settings correctly. Aside from what state tax to collect, you will need to know if you should tax what you receive from your customers for any shipping fees you charge.