Shopify is a Canadian e-commerce company headquartered in Ottawa, Ontario. It is also the name of its proprietary e-commerce platform for online stores and retail point-of-sale systems. Shopify offers online retailers a suite of services “including payments, marketing, shipping and customer engagement tools to simplify the process of running an online store for small merchants.”
Shopify was founded in 2004 by Tobias Lütke, Daniel Weinand, and Scott Lake. In 2012, Shopify acquired Boltmade (a web design agency). In 2013 it launched Shopify Payments (now known as Shopify Payments powered by Stripe) in the United States.
According to Shopify’s IPO Prospectus filed with the SEC in 2015, Shopify had gross merchandise volume (GMV) of $8.0 billion in 2014 and $14.0 billion in 2015. In 2016, Shopify announced that it had processed more than $20 billion in GMV on its platform from more than 275,000 merchants.
Shopify went public on the New York Stock Exchange (NYSE) on May 21, 2015 under the symbol “SHOP”. As of September 2020, the company had a market capitalization of $37.7 billion.
In March 2020, Shopify announced that it would be migrating all of its merchant data to Google Cloud Platform.
Now that we know a bit about Shopify, does it report to the IRS? The answer is yes!
Anytime you make money through an online platform or service, it is required by law to report your earnings to the IRS. This is true for Shopify just as it would be for Etsy, Amazon, or any other similar service. So if you’re selling products through Shopify, make sure to keep track of your sales and report them come tax time.
The bottom line is Yes – Shopify reports to the IRS!
