Starting a Shopify store in Texas opens up incredible business opportunities, but it also brings unique accounting and tax challenges. From choosing the right business structure to navigating complicated sales tax laws and staying compliant with both Texas and federal rules, local Shopify sellers must handle their finances with care. As a Dallas-based CPA specializing in ecommerce businesses, we’ve seen firsthand how proactive tax planning and bookkeeping can make all the difference.

Whether you’re just launching or scaling up, this guide breaks down everything you need to know about accounting and tax compliance for Texas Shopify entrepreneurs.

1. Choosing the Right Business Structure

The legal structure of your business impacts your taxes, liability, and how professional you appear to suppliers and customers. Most Shopify sellers in Texas choose between an LLC (Limited Liability Company) and an S-Corporation.

• LLC: Easiest to start, flexible for solo entrepreneurs or partnerships, and protects your personal assets. Profits pass through to your personal return.

• S-Corp: Can provide additional tax savings if you have higher profits (over $50k/year), but requires more paperwork, payroll, and recordkeeping.

• Pro Tip: Consult with a local business accounting expert to get advice tailored to your situation before you set up.

2. Setting Up Proper Bookkeeping

Relying on Shopify’s payout summaries isn’t enough. Good bookkeeping means you can…

• Track revenue, refunds, Shopify/Stripe/PayPal fees, shipping costs, advertising, inventory purchases, and taxes collected.

• Reconcile your bank account and sales platforms monthly, not just at tax time.

• Use accounting solutions like QuickBooks, Xero, or specialized e-commerce tools that integrate directly with Shopify.

Working with a Texas-based CPA or bookkeeper who understands ecommerce can help automate your monthly closes and prepare accurate financial statements—building trust with lenders, investors, and tax authorities.

3. Understanding Texas Sales Tax Rules

Texas sales tax is a huge topic for local Shopify sellers!

• What’s taxable? Almost all tangible goods sold to a Texas shipping address are subject to sales tax.

• Shopify’s built-in taxes: Shopify can calculate and even collect Texas sales tax, but you are responsible for registering, filing, and remitting that tax.

• Texas Sales Tax Permit: Every seller must apply for a Texas Sales Tax Permit; you’ll need this for most wholesale accounts and banking needs.

If you have customers in other states, you might owe sales tax elsewhere, too (see below).

4. Multi-State Sales Tax (Nexus)

Because Shopify lets you sell nationwide, you may develop “nexus” (a tax connection) in states outside Texas, which is a common surprise for fast-growing stores.

• Economic nexus: Most states set thresholds (sales of $100,000 or 200 transactions per year) for when you need to start collecting sales tax there.

• How to manage: Use sales tax automation tools or speak to a sales tax expert to stay ahead of multi-state requirements.

• Texas is strict about compliance. Failing to register out-of-state can lead to penalties and retroactive taxes.

5. Annual Tax Filings & Estimated Payments

• Texas Franchise Tax: Even if you owe zero, nearly all Texas LLCs and corporations must file an annual franchise tax report.

• Federal taxes: Online sellers must report ALL sales revenue, even if you never receive a 1099 form.

• Quarterly estimates: If your business is profitable, you may need to make quarterly estimated payments to the IRS and, sometimes, to the Texas Comptroller.

Working with an experienced Dallas CPA ensures you don’t miss deadlines or pay unnecessary fines.

6. Common Pitfalls for Shopify Sellers

Shopify businesses often stumble here:

• Inventory tracking mistakes: Not matching stock purchases, COGS, and sales means inaccurate profit numbers.

• Sales tax noncompliance: Forgetting to collect or remit taxes (especially for out-of-state orders) creates expensive risk.

• Mixing funds: Using a personal account for business hurts credibility and leads to IRS scrutiny.

Protect yourself with set processes and professional advice—don’t wait until you get an audit letter!

7. Practical Tips & Best Tools

• Integrate accounting software with Shopify for real-time financial data.

• Work with a local CPA who understands ecommerce and Texas law—see our e-commerce tax page.

• Keep digital and paper backups of key documents (invoices, receipts, tax filings) for at least 3-5 years.

• Review your bookkeeping monthly—not just at tax time.

8. FAQ

Q: Should I collect sales tax on all Shopify sales in Texas?
A: Yes. If you ship goods to Texas addresses, you must collect and remit sales tax unless your goods are tax exempt.

Q: What if I also sell on Amazon or eBay?
A: Track each platform separately for revenue and fees but report the total on your tax returns. State tax obligations may differ by channel.

Q: Can a non-resident own a Texas-based Shopify store?
A: Absolutely. Both U.S. and foreign owners can set up Texas LLCs and run online stores, but non-residents should get local CPA help on banking and compliance.

Conclusion

Shopify makes launching an online business in Texas easy, but proper tax and accounting practices separate sustainable stores from risky experiments. Whether you’re new or scaling, connect with a specialized Dallas e-commerce CPA for a customized roadmap.

Related Reading:

• Accounting services for ecommerce

• Texas company formation

• Tax solutions for small business

Ready to get proactive about your Shopify accounting and tax plan?
Book a free consultation with our Dallas CPA team today.