You have just started in American dropshipping, but do you know if you are in good standing? Find out if what you are doing is illegal or not.
Do you have to declare your first drop shipping sales?
Even if your first sale is exceptional and it does not exceed a few euros, it is mandatory to declare this entry of money, because the law prohibits working illegally or concealed work. We must add to this the status of auto-entrepreneur or micro-entrepreneur which allows protection under the law, but it also allows you to edit invoices with a SIRET and EORI number in order to make customs declarations. . Even if it is true that you do not risk a tax adjustment for ten euros, it is extremely important to declare yourself a self-employed person to start your activity in what is Drop Surfing Ecommerce?
The status to choose for dropshipping
If you want to remain legal, two options are available to you to practice your activity serenely: apply for the status of auto-entrepreneur or create a business. Indeed, the two solutions are totally different, because a company corresponds to a legal company dissociated from your name and your first name while a self-business or a micro-enterprise will be associated with your name, but also engages your personal responsibility. .
What status to do drop shipping online?
If you want to open an e-store in order to do drop shipping, you must certainly be hesitant about the status to adopt in order to work safely and legally. You will then find all the information relating to the different forms of company to guide you in your choice.
If you want to work alone, without any collaborator, it is true that drop shipping is the best option to get started in online business. So, if during your launch period, the turnover is not as good as what you expect, you can decide to start as a self-employed person in order to gain experience in the field before decide to manage a larger structure. As explained earlier, it is extremely easy to open a self-business. All you need to do is navigate to the dedicated website to register your business. Moreover, many decide to turn to this option because it allows benefiting from very interesting tax advantages even if these last only some time or up to a certain threshold of turnover. Indeed, once the various thresholds have been reached, you will be obliged to modify the legal status of your company. When you are finally declared as a self-employed person, you can then open your e-shop with certain specificities due to your status and work with the various suppliers that you will have identified…
The status of Individual Company (EI)
Also called a Company with a Proper Name, it is the status most often used as a self-employed activity. Indeed, this statute is very simple and allows, after having passed the stage of the auto-entrepreneur, to work for his personal account. In addition, the formalities to follow to create this type of business have been reduced and made easier. Also, since your personality is confused with that of the company, you can do whatever you want for your company and its goals. Note however that in the eyes of justice, your personal heritage and that of the company are considered as a whole. This means that, if you file for bankruptcy, your private assets can be seized in order to repay the debts incurred, even if you separate the private from the professional on a tax and accounting level. However, if you want to protect your home from any risk, you can make an appointment with a notary to make a declaration of exemption from seizure. Creating an EIRL makes it possible to differentiate between private assets and company assets. Thus, if you opt for this status, you put all your assets safe in the event of debts to professional creditors.
Legal elements to know
Once the status with which you will exercise has been defined according to various parameters including the turnover achieved, you must know the regulations for the activity of online commerce in drop shipping. Indeed, you must know the type of contract to be made with the supplier, but also your responsibilities towards the customer.
The drop shipping contract
The drop shipping contract is an agreement that makes it possible to frame the relationship between the service provider who will in this case be your supplier, the one who takes care of the delivery of the items to the customer, and yourself, the e-merchant. The contract will then make it possible to define the obligations that each of the players must respect concerning the methods of transmission of orders, the confidentiality agreement, the organization of deliveries , the management of returns , but also the supplier’s method of payment.
The rules to follow when running an e-commerce
Your contract must be in accordance with what is required by article L.121-20-3 of the Consumer Code which will thus detail the responsibilities of the e-merchant, that is to say your responsibilities, concerning the buyers. You are obliged to be responsible for the follow-up of the treatment of the order, but also of the shipment respecting the prescribed deadlines and the respect of the laws. So, for everything to go well with your supplier, it is essential to write a contract with them so that your drop shipping business does not suffer any damage and that you get some protection in the event of a dispute.
Terms of Sales
Like all online stores, you are required to display the general conditions of sale for online stores on your site. Thus, even if you are doing drop shipping and you are not in charge of delivering the products, you are obliged to register with the RCS, that is to say the Trade and Companies Register, and this same if you have the status of auto-entrepreneur. This is true because, no matter what status you have chosen, you are engaged in a sales relationship with customers who will then order from your online store, and you will then receive payments. Thus, to avoid any penalties or requalification of the activity, it is advisable to be in good standing very quickly.
Legal notices, T & Cs and contracts
When you are a beginner, it can be tricky to start drafting official documents such as legal notices, general terms and conditions, the personal data charter or even the drop shipping contract when these are mandatory and necessary for the smooth running of your business. This is why it is not possible to copy what is done in others and to adapt each one to your situation, especially since the slightest mistake or the slightest oversight can turn against you.
Legal advisor or specialist lawyer
This method is known to be the safest, but also the most effective although it can be very expensive while the goal of drops hipping is to keep costs as low as possible since many will prefer to use this money in an advertising campaign.
Write them yourself
Many therefore opt for this option which saves money, but not time. Indeed, it will be necessary to look and analyze what is done with the others to adapt it to your situation and your business. Note all the same that you will not be immune to problems, because you risk making repeated omissions and errors in what you have read on the various documents found on the Net.
Copy documents from a reputable brand
This is a very bad idea, because since the texts are considered to be the intellectual property of the company, you can be accused of plagiarism. This company will most certainly have paid legal fees in order to have these texts written, it is not so that everyone can use them for free.
This article is written by the professional marketing team of Best Car Painting Services in Dubai