Selling on Etsy: License and Permit Requirements
Etsy’s seller policies do not require a business license to sell on their platform. However, you may need a license or permit from agencies regulating businesses. Determine if your Etsy shop is a hobby or business using IRS guidelines. Research local laws to know licenses and permits required for selling on Etsy.
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Items Allowed on Etsy
- Handmade items
- Vintage items
- Craft supplies
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Operational Considerations
- Have a bank account to receive Etsy payments
- Set up shipping
- Check rental agreement for home business operation
- Consider insurance implications for your landlord
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License Requirements
- Some local governments may require a business license once sales surpass a threshold
- Larger businesses have a bigger local impact and need appropriate regulation
Selling Digital Products on Etsy
Do you need a license to sell digital products on Etsy?
Etsy’s seller policies do not require a business license to sell on their platform. However, you may need a license or permit from agencies regulating businesses. Determine if your Etsy shop is a hobby or business using IRS guidelines. If a business, you likely need a license. Research local laws to know licenses and permits required for selling on Etsy.