Business License Requirements for Selling on Etsy
Etsy’s seller policies do not require a business license to sell on their platform. You may need a license or permit from agencies regulating businesses. Using IRS guidelines, determine if your Etsy shop is a hobby or business. If a business, you likely need a license. Research local laws to know licenses and permits required for selling on Etsy.
If you fail to profit, you likely don’t need a license. But if your business grows, get a license to avoid issues. Carry business licenses to establish credibility. You may need a seller’s permit if required in your state to collect sales tax. Handmade items designed and made by you can be sold on Etsy. You can also sell vintage items and craft supplies. Have a bank account to receive Etsy payments. Set up shipping.
Regulations and Legal Considerations
Consider if your rental agreement allows operating a business from home. Some local governments require a business license once sales surpass a threshold. Exceeding the threshold means your operation is more than a hobby. Larger businesses have a bigger local impact, so get appropriately regulated. Implications exist for your landlord regarding insurance.