To start opening your Etsy shop, read our Beginner’s Guide to Selling on Etsy.
Pros and Cons of Obtaining a Business License
The advantage of having a business is that you can write off business expenses from your Etsy profits. But the drawback is that you need to apply for a business license. Virtually all businesses in Washington need to obtain a Washington state business license. To get your license, complete the Washington state Business License Application and pay a $19 fee. You can apply online or by mail.
Do You Need a Business License to Sell on Etsy?
A business license is not required to sell on Etsy; however, you may be required to get a business license from your local government. Depending on where you live, what you sell, and who you sell to, you’ll need to sign up for different kinds of business licenses. If you’re planning on selling food items, alcohol, or tobacco products, then you will need to obtain the appropriate license from your local government.
State laws vary, as do county laws, so it’s important to check on the rules for your specific area. Your state or county still might require you to have a business license in order to do business.
If you have earned several hundred dollars in profits, and it looks likely that your business will continue to grow, you should definitely consider getting a business license to avoid headaches in the future.
Overview of Business Licensing
Being properly licensed is critical to business development and growth because it reassures customers that your online business is legitimate and compliant with the law. Find out what you need to know to get a business license to sell online.
Business license vs. Seller’s Permit
Licenses and permits are different names for the same thing: permission from a government authority to own or do something, usually in exchange for a fee. Permits are generally narrower in scope than licenses.
Business License Requirements in Washington
If you’re selling online in Washington, you still need a business license as the internet is considered another form of doing business throughout the state. Washington makes business licensing easier by offering a statewide business license, instead of a combination of state and local licenses.
In conclusion, obtaining a Washington Business License is a necessary step for anyone looking to start or operate a business in the state, even if it’s primarily conducted online.
Those who live and work in Washington State who gross over $12,000 a year from art-making activities or generate income from the retail sale of their art must obtain a business license from the state. Virtually all businesses in Washington need to obtain a Washington state business license. You can apply online or by mail.
Business owners will need to do some research to check which permits and business taxes are needed for their particular business.