Do I Need a Business License to Sell Digital Products on Etsy?

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.

  • Items Allowed on Etsy

    • Handmade items
    • Vintage items
    • Craft supplies
  • 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
  • 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.

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