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Do You Need a Business License to Sell on Etsy? Your Full Guide Here

Etsy is an excellent tool for selling digital or physical products online. You only need to be creative when selling on Etsy! But do you need a business license to sell on Etsy?

It depends on your location and the nature of your business. In this article, I have outlined all the conditions and locations that may require you to have a business license to sell on Etsy. 

do you need a business license to sell on etsy

Do you need a business license to sell on Etsy in US?

You are not required to have a business license to sell on Etsy in the US. However, if your Etsy shop qualifies as a business rather than just a hobby or part-time, you need a business license to sell on Etsy – depending on local laws in your state or city.

How does your shop qualify for a business license?

If your shop matches with the following, then you must get a business license to sell on Etsy:

  • Your Etsy shop makes a consistent profit, and you rely on its income.
  • If your shop qualifies as a business and not a hobby.
  • If you send handmade goods or products that require specific regulations.
  • If your business grows to a scale. You may need a Sales Tax Permit or an Employer Identification Number (EIN).

You don’t need a business license if your shop does not qualify to be taxed or meet any criteria. Read more from the Etsy Shop guide.

Do you need a business license to sell on Etsy in Pakistan?

Neither Etsy nor local regulations require a business license when you are selling on Etsy from Pakistan. However, if your shop expands to grow as a full-scale business, you may need to register it according to local business laws. Note that income tax plays a CID role in this country.

More profit means more currency conversion and more withdrawals to local banks. The country does not require immediate business registration, but you must file taxes depending on your income threshold.

It is advisable to consult a local legal advisor to ensure compliance with your specific location. Only if your shop has expanded to a big scale of growth and you have a staff managing your store. Beginning or doing it as a part-time hobby doesn’t require a business license to sell on Etsy.

Beginning or doing it as a part-time hobby doesn’t require a business license to sell on Etsy.

Final Words

So, that’s all for this blog. If you need help with your Etsy store setup, SavyCoder is just a contact away.

Happy selling! Let’s chat in the comment section below.

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