Do I Need Insurance to Run an Etsy Business?

To open an Etsy shop legally, you need to consider the following:

Business License Requirements
- Check with your local agency for business license requirements.
- If you operate as a business on Etsy, obtain the necessary permits.
Etsy Business Plan
- Success on Etsy requires a well-thought-out business plan.
Payment Setup
- Connect your bank account to your Etsy shop for payments.
- For tax purposes, as a sole proprietor, you need only your Social Security Number.

Licensing Requirements
- Etsy policies do not mandate a business license, but local laws may require it.
- Verify if you need a license based on your location and business model.
Insurance Considerations
- While Etsy doesn’t demand insurance, product liability coverage is crucial for protection.