Depop Business License vs LLC
If you're selling on Depop, you may be wondering whether you need a business license or an LLC. While both terms get used a lot, they're not the same. This guide explains the difference, when a business license applies, and why an LLC is often the better move for Depop sellers looking to get serious.
Do Depop Sellers Need a Business License?
The short answer: it depends on where you live.
- Some cities and states require a local business license if you run a business from home
- Others may only require licensing once you pass certain sales thresholds
- Depop itself doesn't require you to upload a license to sell
Always check your local rules to make sure you're covered.
Learn more about taxes: Depop Tax Form Guide
Business License vs. LLC
- A business license is permission from your city or state to operate
- An LLC (Limited Liability Company) is a legal business structure
Key differences for Depop sellers:
- A license doesn't separate personal and business income — an LLC does
- A license can be required even if you have an LLC
- An LLC creates credibility with customers and financial institutions
Related: LLC for Depop Sellers
The Simple Startup Path for Depop Sellers
If you're growing on Depop and want to run things properly, a smart path looks like this:
Form an LLC
To separate finances and create a real business structure
Apply for an EIN
So you can open a business bank account
Check your city/state
To see if a local business license is required
Track sales and expenses
To prepare for tax season
This way, you cover both compliance and growth.
Frequently Asked Questions About Depop Business Licenses
Is a business license the same as an LLC?
No. A license is permission to operate, while an LLC is a legal structure that separates finances and provides liability protection.
Do I need both a license and an LLC for Depop?
Sometimes. In many states, yes — the LLC defines your structure, and the license gives local approval to operate.
Can Depop sellers skip the license?
Not if your city or state requires it. Always check local regulations.
Which one should I start with: a license or an LLC?
Most sellers start with an LLC first, then add a license if local law requires it.
Does Genie LLC provide business licenses?
No, Genie focuses on LLC formation, EIN help, and operating agreements. But once your LLC is formed, it's simple to check your city/state site for license details.
Related Reading
Final Word on Depop Business Licenses
If you're selling casually, you may not think about business licenses or LLCs. But once Depop becomes a steady income stream, you need to take compliance seriously. A license gives you local approval, but an LLC is what really separates your business from your personal life.
With Genie LLC, you can form your LLC for just $49 and have the foundation you need to grow your Depop shop with confidence.