LLC for Depop Sellers

Many Depop sellers start out casually, but once sales grow, it's smart to treat your shop like a real business. One of the most common questions is: Do Depop sellers need an LLC? This guide explains what an LLC does, why it matters for Depop sellers, and how you can form one easily with Genie LLC.

Why Consider an LLC for Depop?

An LLC isn't mandatory, but it gives sellers major advantages:

Separates personal and business income for cleaner Depop tax reporting
Protects your personal assets with liability separation
Makes bookkeeping easier during tax season
Allows you to open a business bank account for Depop earnings
Adds professionalism and credibility if you plan to grow beyond casual selling

Learn how LLCs impact filing: Depop Tax Form Guide

LLC vs. Sole Proprietorship for Depop

Most sellers operate as sole proprietors by default. That means:

Business and personal finances are mixed
You file taxes under your own name and SSN
There's no liability protection

By contrast, an LLC:

Creates a clear legal structure
Keeps finances separate
Simplifies scaling when Depop becomes a real income stream

Related: Depop Business License vs LLC

EIN and Business Bank Accounts

After forming an LLC, you can apply for an Employer Identification Number (EIN). This is required to:

Open a business bank account for Depop sales
File taxes as a business
Work with wholesalers or vendors

A dedicated bank account makes it much easier to track expenses and prepare for tax season.

Costs and Timeline for an LLC

State filing fees range from around $40 to $500 depending on where you live
Processing times vary by state, usually a few days to a few weeks
With Genie LLC, you can get everything you need for $49 flat — no upsells, no hidden charges

Start my LLC for $49

Frequently Asked Questions About LLCs and Depop

Do I need an LLC to sell on Depop?

No, but an LLC makes taxes and bookkeeping much easier and adds legal protection.

Can minors form an LLC for Depop?

Yes, but most states require a parent or guardian to be involved in the filing process.

Is an LLC better than a DBA for Depop?

Yes. A DBA is only a name; it doesn't provide liability protection or financial separation.

Does forming an LLC lower taxes for Depop sellers?

Not directly, but it helps you claim deductions clearly and keep accurate records.

How much does it cost to form an LLC for Depop?

It depends on your state fee, but Genie LLC makes the process simple for $49.

Final Word on LLCs for Depop Sellers

If you're only selling a few items, you can stay as a sole proprietor. But if you're building a serious Depop business, an LLC is the smartest step. It separates your finances, adds protection, and makes tax season smoother.

With Genie LLC, you can set up your LLC for just $49 and treat your Depop shop like a real business.