Introduction
If you’re considering diving into the world of TikTok Shop as a seller, one of the crucial decisions you’ll face is whether to set up a personal account or a business account. TikTok Shop offers specific criteria and advantages for both options. In this blog post, we’ll break down the key differences and requirements to help you make an informed choice.
Country Eligibility for opening Tiktok Shop Account
TikTok Shop welcomes sellers from select countries. Currently, these include Malaysia, the Philippines, Singapore, Thailand, the United Kingdom, the United States, and Vietnam. Before you decide on the type of account, make sure you meet this primary eligibility requirement.
Tiktok Shop Personal Account document verification
Requirements:
– To open a TikTok Shop personal account, you’ll need to upload images of your passport, national ID, or driver’s license.
– If you’re registering in the United States, be prepared to provide personal tax details like your social security number.
Tiktok Shop Business Account document verification
Requirements:
– For a TikTok Shop business account, corporations must provide a government-issued identification document of the legal representative, company director, or person with significant control (PSC).
– Additionally, you’ll need to furnish business-related documents such as a business license or registration that proves your eligibility to sell on the platform.
– In the United States, business tax details like an EIN (Employer Identification Number) or ITIN (Individual Taxpayer Identification Number) are mandatory.
Identification and Verification
TikTok Shop places a premium on security and verification. Before your seller account is approved, they will verify your identification and business documents, whether it’s a personal or business account. Be prepared to go through this process.
Tiktok Shop Account Sales Limit
Personal Account:
– A TikTok Shop personal account comes with an initial sales limit of 100 sales per day for the first 60 days.
Business Account:
– On the other hand, TikTok Shop business accounts start with a higher initial sales limit of 200 sales per day.
– They are generally less strict and offer the advantage of having an account manager to assist with advertising.
Increasing Tiktok Shop Seller Sales Limits
For both personal and business accounts, you can raise your sales limits after meeting certain criteria. Typically, you need to achieve 500 total sales, have your account active for 60 days, and fulfill other requirements that TikTok Shop may specify.
Benefits of a Tiktok Shop Business Account
Opting for a TikTok Shop business account has several advantages:
– It helps you keep your business finances separate from your personal finances, making it easier to track expenses and revenue.
– Reporting taxes as a business can have benefits depending on your local tax laws and your business structure.
Challenges of a Tiktok Shop Business Account
– Depending on your business structure, you may have limited liability protection when operating your TikTok Shop business as a separate business entity.
Opening and maintaining a business account comes with extra complexities, costs, and legal obligations, such as annual business filings as required by local laws.
Tiktok Shop Account for International Sellers
For those who are not residents of the TikTok Shop-supported countries, establishing a legal business in one of these supported countries and selling as a TikTok business registered there may be the viable way to access TikTok Shop as a seller.
Conclusion
In summary, the decision between a TikTok Shop personal account and a business account should be based on your individual circumstances, goals, and willingness to handle the complexities that come with the latter. While a business account offers significant advantages, it also entails more administrative work and potential legal obligations. Assess your situation carefully and choose the account type that aligns with your needs and ambitions.
