To start opening your Etsy shop, read our Beginner’s Guide to Selling on Etsy. Explore the Seller Handbook for in-depth guides on everything you need to run a successful business on Etsy. Listen to the Etsy Success podcast. Connect with our community of talented and knowledgeable sellers in the Etsy Community. Enroll in an Etsy U class to learn from experienced sellers.
If your Etsy activity is a hobby, you cannot claim any deductions above the income you generate from the hobby. So you do not need a business license. However, any money generated from your Etsy shop is taxable.
You need a business operation license to legally run your business. The application process for eCommerce merchants is minimal. An employer identification number (EIN) is also required.
State laws vary on whether you need a license. Check on the rules for your specific area. Consider that if you rent, the terms of your rental agreement may prohibit operating a business from home.
Etsy does not require a license. But you must follow laws as a small business selling online especially if you sell food, alcohol or tobacco.
To sell on Etsy, open an account and start uploading product shots and details. Etsy offers no startup cost and inventory requirements. You will get active buyers interested in your items.
Research your local laws to determine required licenses and permits. Some states require a sales tax permit or business license.