Do you need a business license to sell on etsy in California?

Selling on Etsy in California might be subject to a business license, depending on the nature of the products being sold and local laws.

1. Business License Requirements

The majority of cities and counties in California demand a business license for any form of commercial activity, including online sales. Consult the local city or county government in which the business is situated to ascertain requirements.

2. Seller's Permit for Sales Tax

If selling physical products, a California Seller's Permit from the California Department of Tax and Fee Administration (CDTFA) is required. This permit is required to be able to charge sales tax on California buyers.

3. Fictitious Business Name (DBA) Registration

If the Etsy store is operating under a name different from the owner's true name, a DBA (Doing Business As) registration may be required through the county clerk's office.

4. Federal and State Tax Compliance

California Franchise Tax Board (FTB) and IRS require Etsy sellers to report income. Federal self-employment tax applies if income crosses the reporting threshold. In addition, Etsy reports Form 1099-K when sales or transactions reach the level.

5. Home-Based Business Considerations

Home selling may require a home occupation permit depending on local zoning ordinances.

Failure to comply with licensing conditions results in fines or restriction of the business. Aiding in compliance with such rules can be accessed by seeking assistance from a business registration specialist.

For professional services for business license, tax registration, and compliance, engage One IBC USA for professional consultancy.