Dropshippers sell products they never physically handle, but they are still legally responsible for product safety and quality. If a customer is injured by a defective product, you can be sued as the seller of record. An LLC separates your personal assets from this business liability and provides the entity structure needed for payment processors and suppliers. Scottsdale is home to ~35K businesses and has a population of 241K, making it a thriving market for dropshipping. Forming your LLC in AZ provides personal asset protection and positions your dropshipping business for growth in the Scottsdale metro area.