Do I Need a Business License to Sell on Etsy in California?

Do I need a seller permit to sell on Etsy in California?

Etsy’s policies and seller’s permit requirement

Etsy’s 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.

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. States levy sales tax on goods and services. You may need a seller’s permit if required in your state to collect sales tax. 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 receive Etsy payments. Set up shipping.

Consider if your rental agreement allows operating a business from home. Implications exist for your landlord regarding insurance. 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.

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