I am starting an online business that I hope will grow into a store. For now the business is dropship. Do I need to incorporate or LLC my business?
There isn’t any reason you couldn’t use either one. Depending on your state and tax situation, there may be a reason to go one way or the other, however both entities will provide the separation of business and personal assets.
You could also form as a sole proprietorship as the drop ship model is very low risk, unless the product has some potential safety issues you are worried about or if you have employees. Going into a storefront, there may be some benefit to multiple LLC if you are also going to own the building so as to create some additional liability protections and potential tax benefits.