To get paid on Etsy, you need to connect your bank account to your Etsy shop so that you can receive payments. Whether a seller needs a business license to sell on Etsy depends on the laws and regulations that apply to their specific situation. You must check your local laws and regulations to determine licenses and permits you need to sell on Etsy. If you operate your Etsy business as a sole proprietor, you only need your Social Security Number for tax identification purposes.
Etsy and Business Licensing
Etsy’s seller policies do not require you to have a business license to sell on their platform. Your Etsy shop is either a business or a hobby. You might not need a formal business license if you’re running your Etsy shop as a hobbyist or a small-scale venture. However, if your Etsy store evolves into a substantial source of income, it’s wise to explore the licensing requirements in your state.
If you sell on Etsy as a business and not just as a hobby, you will likely need to obtain a business license or other permits. Contact your local government or regulatory agency to determine the specific requirements and steps for obtaining a business license in your area. An Employer Identification Number (EIN) allows businesses to file taxes with the IRS or other regulatory bodies. However, you may need an Etsy EIN number if you’re registering a partnership or LLC.
In Canada, you do not need to register your business if you are the sole proprietor and use your legal name as the name of your business. Etsy in Canada charges sellers listing fees, transaction fees, and payment processing fees.
Crafting an Etsy Business Plan
It took me a long time to realize I needed a business plan. I thought I could make what I liked, whenever I wanted and it would sell. In order to really have success in your craft business, you need an Etsy business plan.
Do You Need a License to Sell on Etsy?
Etsy’s seller policies do not require a license to sell. However, your local government may require you to get one. Your shop is either a business or a hobby.
You might not need a license if you’re running your shop as a hobbyist or small venture. However, if your store evolves into a substantial income source, explore licensing in your state.
If you sell on Etsy as a business, obtain a business license or permits. Contact your local agency to determine requirements.