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Etsy ShopHow to Start an Etsy Shop: LLC Setup
Opening an Etsy shop? Etsy checks your tax details against the IRS database, and a wrong entry can get a shop suspended. Why an LLC matters for something like candles, the three places your name has to match, and the key Bizee screens, start to finish.
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Why an LLC for this business
The candle
A burn claim needs a business to land on, and insurance to answer it
The money
An LLC's protection holds as long as business money and yours stay apart
Names that match
The IRS, your bank account and your business papers
How to start it, in order
- Pick your product and read its rules: candle wicks have a federal lead limit, and cosmetics and kids' items have their own.
- Check your city's home-business rules and your state's seller's permit rules. Some states want a permit even though Etsy collects the tax.
- Form your LLC, get its EIN if you need one, and open a bank account in the LLC's name.
- Get product liability insurance for your exact products.
- Open the shop. Etsy checks your name and tax ID against the IRS, so enter them once and confirm with a tax pro.
- Price with the fees inside: $0.20 listing, 6.5%, 3% + $0.25, and 15% if an Etsy ad brought the buyer (as of Nov).
- Ship with tracking: Etsy can hold part of a new seller's money, and valid tracking can release it early.
Every fact in this guide was checked against a primary source before the video was made.
Etsy is a trademark of its owner. This channel is not affiliated with or endorsed by Etsy.
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