do you need a business license to sell on etsy
Question
do you need a business license to sell on etsy
As a new Etsy seller, I am wondering if I need a business license to sell on Etsy. I have heard that some states require a business license for online sales, but I am not sure if this applies to Etsy. I would like to know if I need a business license to sell on Etsy and if so, what kind of license I need.
Gertrude Enos
Upvote:
317
Published Date: 2023-11-11T20:32:31Z
3 answers
Answer 1
Answer LinkYou do not need a business license to sell on Etsy, but you may need a license or permit from municipal, county, state, or federal agencies regulating businesses.The first thing you need to do is figure out if your Etsy activity is a business or a hobby.If you have a business, you need a business license.If you are engaging in a hobby, you don’t.The IRS has nine factors in determining if your activity is a hobby or a business.For example, they look at the time and effort you spend on the activity.They also consider if you operate the activity like a business and depend on the income for your livelihood.If you profit from your activity in at least three of the most recent five tax years, the IRS considers that a business.Or, if you intend to engage in a profit-making venture, you have a business.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.
Anna Cunningham
Upvote:
25
Published Date:
2023-11-12T18:22:13Z
Answer 2
Answer LinkYou do not need a business license to sell on Etsy, but you may need a license or permit from municipal, county, state, or federal agencies regulating businesses. The requirements vary depending on your location, so it’s best to check with your local government to see what licenses or permits you need. Some states require a sales tax permit, while others require a general business license. You may also need a zoning permit if you are operating your business from your home. It’s important to note that if you are selling food or other regulated items, you may need additional licenses or permits. It’s always best to check with your local government to ensure that you are in compliance with all regulations.
Marcia Love
Upvote:
16
Published Date:
2023-11-15T16:07:27Z
Answer 3
Answer LinkYou do not need a business license to sell on Etsy, but you may need a license or permit from municipal, county, state, or federal agencies regulating businesses.The requirements vary depending on your location, so it’s best to check with your local government to see what licenses or permits you need.Some states require a sales tax permit, while others require a general business license.You may also need a zoning permit if you are operating your business from your home.It’s important to note that if you are selling food or other regulated items, you may need additional licenses or permits.It’s always best to check with your local government to ensure that you are in compliance with all regulations.
Sharon Mcgraw
Upvote:
10
Published Date:
2023-11-26T04:28:05Z
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