Do You Need a Business License to Sell on Etsy in Michigan? Selling Handmade Goods and Etsy Business Guide

Getting Started in Michigan

A sales tax license is required to legally sell handmade things in Michigan, whether from home or a store. Call the Michigan Department of Treasury to request a 518 form.

You must register your online Michigan business to make tax payments. Obtain necessary permits too. Search what permits you need and get applications from Michigan Business One Stop.

There’s no state-wide business license in Michigan. Some cities require a license for home businesses selling online. Call your city hall or chamber of commerce.

You may need an Employer Identification Number (EIN) to:

  • If you have employees
  • If you form an LLC or partnership

Check local business licensing laws.

Learn More About Selling on Etsy

Here are some resources to assist you:

  • Explore the Seller Handbook for guides on running a successful Etsy business.
  • Listen to the Etsy Success podcast.
  • Watch Etsy videos on YouTube.
  • Connect with the Etsy Community.
  • Enroll in an Etsy U class to learn from experienced sellers.

Opening an Etsy Shop

If you’re starting on Etsy, follow these steps:

  1. Open an Etsy shop
  2. Listings, pricing, photos
  3. Process orders
  4. Customer service

Depending on your activity, your Etsy shop can be classified as a business or a hobby, influencing tax deductions and licensing requirements.

Business License and Tax Considerations

Business license requirements vary for a home-based or online business. You may need an Employer Identification Number (EIN) to file business taxes with the IRS:

  • If you have employees
  • If you form an LLC or partnership

For transactions into Michigan, out-of-state sellers may be required to remit sales or use tax.

Selling on Etsy does not require a license, but you might need one depending on your state, county or city regulations and whether you’re operating as a business or hobby.

Essential Resources for Etsy Sellers

Expand your knowledge and skills by utilizing these resources:

  • Explore the Seller Handbook.
  • Listen to the Etsy Success podcast.
  • Watch informative videos on YouTube.
  • Join the Etsy Community.

Michigan Specifics

To sell online, you need a Michigan sales tax license. Online businesses do not need additional licenses but check with relevant agencies. Services such as LegalZoom can assist in identifying necessary licenses.

Marketing Your E-Commerce in Michigan

Consider these strategies:

  • Digital marketing
  • SEO
  • Social media
  • Email campaigns
  • Affiliate advertising

For selling art, only the sales tax license is typically necessary.

For sales tax information, check Michigan’s official website or third-party services like TaxJar.

Do I need a business license to sell on Etsy in Michigan?

Yes, a sales or use tax license is required.

What’s the difference between an EIN and a license?

An EIN is a tax ID from the IRS, while a license allows you to operate your business legally.

Do I need any permits to sell online in Michigan?

It depends on your products. Check with the state for specifics.

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