Selling on Etsy: Business License Requirements
Etsy’s policies do not require a business license to sell on their platform. However, local laws may need you to have a license for regulating businesses. Use IRS rules to decide if your shop is a hobby or business. If it is a business, you likely require a license.
- Check local laws for selling on Etsy legally.
- To gather sales tax, you may require a seller’s permit if your state needs it.
- Handmade items designed/made by you can be sold on Etsy. You can also sell vintage items and craft supplies.
- Have a bank account to get Etsy payments. Set up shipping.
Managing a Home Business on Etsy
See if your rental agreement allows a home business. It has implications for your landlord regarding insurance. Some local governments require a business license once sales exceed a limit. Exceeding it means your shop is more than a hobby. Bigger businesses have a larger local impact, so follow regulations appropriately.