On this guide
Follow the path in order.Etsy channel guide • Indiana launch path
Start Etsy in Indiana
Decide your setup, get the Indiana registration order straight, and finish the early Etsy launch steps without losing the official detail behind the answer.
Last verified April 28, 2026 7 chapters
Best for launching on Etsy in Indiana. Need the full appendix? Open the full reference guide.
On this journey
1 of 7 reviewed
Current chapter: Choose setup
On this journey
1 of 7 reviewed
Current chapter: Choose setup
01
Chapter 1 of 7
Choose the setup you want to launch with
Start with the setup decision first, then use the rest of the guide to build the state registrations and platform steps around it.
Core chapter
What this chapter does
Your setup choice, the short safe path, and the money realities that matter before spending deeply.How to move through it
Review sole proprietor.Use Part 1 to get oriented, then compare both setup paths before you spend more time or money.
3 parts to review • 34 source touchpoints behind the drawers.
Chapter parts
Open Part 1 when you are ready to start working through this chapter.After you start, only one part stays open at a time and the earlier ones stay easy to revisit.
Part 1 of 3
Start here before you spend heavily
A short orientation for the guided journey before the detailed launch steps begin.
Part 1 of 3
Start here before you spend heavily
A short orientation for the guided journey before the detailed launch steps begin.
Short answer
Use this first part only to get oriented. The detailed state, platform, local, and packet steps will follow in order.- First decide whether you are launching as a sole proprietor or a single-member LLC.
- Then work through the Indiana registrations, Etsy setup, local checks, and packet review in order.
Do next: Do not spend money yet.
Why this matters
Key detail
Do not spend money yet.
Keep in mind
- First decide whether you are launching as a sole proprietor or a single-member LLC.
- Then work through the Indiana registrations, Etsy setup, local checks, and packet review in order.
Official links
Up next Compare setup
Part 2 of 3
Compare sole proprietor and LLC
The side-by-side setup comparison.
Part 2 of 3
Compare sole proprietor and LLC
The side-by-side setup comparison.
Short answer
Read both setup paths before you decide which one you want the rest of the launch flow to follow.- Best if you want the cheapest and simplest start.
- Indiana does not require a state entity-formation filing if you operate as a sole proprietor under your own legal name.
- Faster launch.
Do next: Review sole proprietor.
Save the path you want to optimize around
The unchosen setup stays visible for comparison, but the chosen one gets visual priority so the reading path feels more intentional.
Quick tradeoff view
Use one pass to compare the launch speed, separation, and upkeep tradeoffs.The detailed comparison stays below. This lens just makes the two setup shapes easier to scan before you read every bullet.
Best for
Sole proprietor
Best if you want the cheapest and simplest start.
Speed to start Quicker start
Owner and business separation Very little separation
Ongoing admin load Lighter upkeep
Best for
single-member LLC
Best if you want a more durable setup for a real business.
Speed to start More front-loaded paperwork
Owner and business separation Cleaner separation
Ongoing admin load More upkeep
Compare details
Sole proprietor
Best for
Best for
Best if you want the cheapest and simplest start.
What it means
- Indiana does not require a state entity-formation filing if you operate as a sole proprietor under your own legal name.
- If you use a trade name, Indiana's official Secretary of State FAQ says sole proprietors and general partnerships file the assumed name with the County Recorder in each county where they are situated.
- Business income generally runs through your personal tax return unless facts change the tax treatment.
- You usually do not get a liability shield.
Why someone chooses it
- Faster launch.
- Lower up-front filing costs.
- Fewer entity maintenance steps.
Main downside
Personal liability
single-member LLC
Best for
Best for
Best if you want a more durable setup for a real business.
What it means
- Indiana LLC formation uses Articles of Organization Domestic Limited Liability Company (State Form 49459).
- The current public form reviewed on April 28, 2026 shows a $100.00 filing fee.
- Indiana LLCs file a biennial Business Entity Report through INBiz.
- Default single-member LLC tax treatment is usually disregarded-entity treatment unless you later elect otherwise.
Why someone chooses it
- Liability protection.
- Cleaner setup for banking, vendors, bookkeeping, and scaling.
- Better fit for trademarks, insurance, employees, and later restructuring.
Main downside
Higher setup friction and cost than a sole proprietorship
Official links
Local in.gov
Compare business types
Local faqs.in.gov
Sole proprietor baseline
Local faqs.in.gov
Sole proprietor assumed-name rule
Federal irs.gov
EIN overview and online application
Formation in.gov
Formation hub
Formation forms.in.gov
Default entity formation filing
Official faqs.in.gov
Registered-agent rule
Official in.gov
Fee cross-check caveat
Formation inbiz.in.gov
Ongoing entity maintenance
Federal irs.gov
Entity tax treatment
Tax inbiz.in.gov
Recurring entity filing or fee
Up next Money and risk
Part 3 of 3
See the money and risk realities before you spend
The upfront friction and risk notes that shape the launch decision.
Part 3 of 3
See the money and risk realities before you spend
The upfront friction and risk notes that shape the launch decision.
Short answer
These are the friction points most likely to catch a new Etsy operator off guard in Indiana.- Indiana's marketplace-only sales-tax answer is helpful, but it is not the whole story if you also make direct sales.
- Etsy identity verification and bank verification can stall onboarding if your records do not match.
- If you sell physical products, commercial general liability and product liability are practical early decisions even though no public Etsy-wide seller insurance threshold was identified in the reviewed source set as of April 28, 2026.
Do next: Review indiana-specific friction.
Why this matters
Indiana-specific friction
Main takeaway
Indiana's marketplace-only sales-tax answer is helpful, but it is not the whole story if you also make direct sales.
Watch for
- Indiana splits assumed-name filings between the County Recorder path for sole proprietors and the Secretary-of-State path for state-filed entities.
- Indiana's marketplace branch includes a second decision point for existing accounts: depending on the facts, the seller may keep the account, file $0 returns, adjust filing frequency, or close it.
- The ST-105 resale branch is real, but you should keep the marketplace-only versus seller-held-registration split explicit instead of assuming every supplier will treat those paths the same way.
- Indianapolis adds real home-occupation, zoning, and local property-review risk if the business operates from home or stores equipment locally.
Etsy-specific friction
Main takeaway
Etsy identity verification and bank verification can stall onboarding if your records do not match.
Watch for
- Etsy's allowed-item rules are narrower than broad online-marketplace eligibility.
- The shop set-up fee is location-variable, so you cannot model it from one universal public U.S. number.
- Listing fees, transaction fees, payment-processing fees, and Offsite Ads can stack quickly if you price casually.
- Account reserves and seller-info confirmation are real operational friction even after the shop is open.
Insurance reality
Main takeaway
If you sell physical products, commercial general liability and product liability are practical early decisions even though no public Etsy-wide seller insurance threshold was identified in the reviewed source set as of April 28, 2026.
Watch for
- Etsy's public Purchase Protection help says qualifying orders up to $250 may be covered, but the program is not insurance.
- Etsy's public Purchase Protection help page itself announces updates beginning May 7, 2026, so re-check both the live help page and Etsy's legal policy page if the launch or first sale happens on or after that date.
- Etsy's public shipping-label help says some label services include coverage and additional shipping insurance may be available, so shipping-label protection should be treated as shipment-specific, not as business-wide coverage.
Official links
Local in.gov
Compare business types
Formation in.gov
Formation hub
Formation forms.in.gov
Default entity formation filing
Official faqs.in.gov
Registered-agent rule
Official in.gov
Fee cross-check caveat
Formation inbiz.in.gov
Ongoing entity maintenance
Federal irs.gov
EIN overview and online application
Federal irs.gov
EIN paper form
Tax inbiz.in.gov
State tax registration
Tax in.gov
RRMC fee support
Platform in.gov
Marketplace or platform tax rule
Tax in.gov
Marketplace account maintenance branch
Tax in.gov
Resale or exemption certificate
Tax in.gov
Recordkeeping and small-business tax guide
Platform help.etsy.com
Platform protection and shipping-risk checkpoint
Platform help.etsy.com
Shipping-label insurance and claims
Platform indy.gov
City start page
Platform maps.indy.gov
City zoning branch
Official gis.indy.gov
Home-occupation ordinance
Local in.gov
Local property reporting branch
02
Chapter 2 of 7
Handle the Indiana registration path in order
This is the state-side work before you rely on the platform to carry any part of the operating flow.
Core chapter
What this chapter does
The Indiana and federal registration sequence, tax setup, and state-maintenance checks.How to move through it
Step 2: Choose your name and brand approach.Use the order check first, then move from name and entity work into EIN, banking, and tax setup.
4 parts to review • 42 source touchpoints behind the drawers.
Registration sequence
Keep the Indiana and federal setup in this order.This chapter works best when you keep the filings, EIN, banking, and tax work in one clean sequence instead of bouncing between tabs.
- 1 Use the checklist to keep the order straight
These checklist groups keep the pre-spend, pre-sale, and pre-launch work visible before you open the platform workflow.
- 2 Handle name, entity, and filing setup
Use the name-and-formation steps plus the state LLC order before you open banking or state tax registration.
- 3 Get the EIN and banking basics in place
Use the EIN and banking steps before you start platform onboarding, payouts, or supplier paperwork.
- 4 Close the Indiana tax and filing branch
Keep the Indiana tax and maintenance rules together before you assume the platform solved them.
Chapter parts
Open Part 1 when you are ready to start working through this chapter.After you start, only one part stays open at a time and the earlier ones stay easy to revisit.
Part 1 of 4
Use the checklist to keep the order straight
The quick-start checklist grouped by the main launch phases.
Part 1 of 4
Use the checklist to keep the order straight
The quick-start checklist grouped by the main launch phases.
Short answer
These checklist groups keep the pre-spend, pre-sale, and pre-launch work visible before you open the platform workflow.- Pick your business name.
- Form the business or file the right Indiana assumed-name document if needed.
- Get an EIN from the IRS if applicable.
Do next: Pick your entity.
See checklist
Do these before you spend money
Grouped so the launch order stays easier to scan.
- Pick your entity.
- Pick your business name.
- Decide your Etsy product lane.
- Avoid regulated or high-risk categories for your first launch unless the request specifically wants them.
- Confirm the offer is not blocked by law, safety rules, or platform policy.
- Make sure you can document sourcing, design ownership, vintage status, or supplier legitimacy where relevant.
Do these before your first sale
Grouped so the launch order stays easier to scan.
- Form the business or file the right Indiana assumed-name document if needed.
- Get an EIN from the IRS if applicable.
- Open a dedicated business bank account.
- Register for Indiana tax or seller-permit paths that apply.
- Check local permits and home-based business rules.
- Create your Etsy account and complete verification.
Do these before launch goes live
Grouped so the launch order stays easier to scan.
- Complete the Etsy shop setup steps.
- Confirm product, category, or account eligibility.
- Set up fulfillment, shipping, or storefront operations correctly.
- Build the first listing, store pages, or checkout flow correctly.
- Start small so you can test demand and catch compliance mistakes early.
Official links
Up next Name + filing
Part 2 of 4
Handle name, entity, and filing setup
The name, formation, and LLC-order work for the state launch path.
Part 2 of 4
Handle name, entity, and filing setup
The name, formation, and LLC-order work for the state launch path.
Short answer
Use the name-and-formation steps plus the state LLC order before you open banking or state tax registration.- Step 3: Form the business.
- If you sell under your legal name:.
- Indiana's official FAQ says sole proprietors and general partnerships file the assumed name with the County Recorder in each county where they are situated.
Do next: Step 2: Choose your name and brand approach.
Step details
Best practical order for a Indiana single-member LLC launch
- Choose the Etsy product lane first.
- Choose the legal name and public brand plan.
- File Articles of Organization (State Form 49459).
- Get the EIN.
- Open the bank account.
- Decide whether you are using the Indiana marketplace-only tax posture or registering for sales tax from day one.
- If needed, file State Form 30353 for the assumed name.
- Check county and city permit, zoning, and property branches.
- Build the Etsy shop and complete identity, bank, and seller-information verification.
- Finish the first listing, storefront, return-policy, and shipping setup.
- If hiring, add ESS, new-hire, and workers' compensation setup.
- Track the biennial entity-report cycle and any local property deadlines that apply.
Sole proprietor: Decide whether you need a county assumed-name filing
Main takeaway
If you sell under your legal name:
Watch for
- Indiana's official FAQ says sole proprietors and general partnerships file the assumed name with the County Recorder in each county where they are situated.
Single-member LLC: Name search and naming standards
Main takeaway
Before filing:
Watch for
- search and begin the filing through INBiz before paying.
- the current State Form 49459 instructions say the LLC name must include Limited Liability Company or an accepted abbreviation,.
Single-member LLC: File the formation document
Main takeaway
Core filing:
Watch for
- older SOS online-registration guidance still shows a generic $85 online for-profit registration fee plus processing. Because the public Indiana fee sources are not perfectly harmonized, re-check the live INBiz checkout total before filing.
- Form name: Articles of Organization Domestic Limited Liability Company.
- Form number: State Form 49459.
- Filing fee: State Form 49459 shows $100.00 as of April 28, 2026.
Single-member LLC: Complete the immediate post-filing step
Main takeaway
No separate Indiana initial report or publication requirement was verified on the official pages reviewed.
Watch for
- Keep an operating agreement internally even though it is not an Indiana filing requirement on the public pages reviewed for this lane.
Single-member LLC: File the assumed-name or DBA form if needed
Main takeaway
Businesses that file with the Secretary of State use the Secretary of State assumed-name branch and do not file entity assumed names at the county.
Watch for
- The current Indiana assumed-name filing form is Certification of Assumed Business Name (All Entities) (State Form 30353).
- The current official State Form 30353 reviewed on April 28, 2026 shows a filing fee of $30.00 per name for for-profit corporations, LLCs, LPs, and LLPs.
Step 2: Choose your name and brand approach
Main guide step 2
What this step settles
You need to decide whether you are:
Why it matters: Important:
- operating under your own legal name,
- using an Indiana assumed name,
- selling your own handmade items,
- selling your own original designs,
- selling qualifying vintage,
- or selling qualifying craft or party supplies.
- Etsy shop names do not replace the legal entity name or tax records behind the business.
- Etsy account, bank, identity, and tax details still need to match real-world records.
- If you plan to use a production partner, Etsy expects that to be disclosed in the applicable listings.
- Indiana treats sole-proprietor assumed names and entity assumed names as different filing branches.
Step 3: Form the business
Main guide step 3
What this step settles
If you choose sole proprietor: If you sell under your legal name, Indiana does not require a state entity-formation filing.
- If you choose sole proprietor: If you sell under your legal name, Indiana does not require a state entity-formation filing.
- If you choose sole proprietor: If you use a trade name, file the assumed name with the County Recorder in each county where the business is situated.
- If you choose sole proprietor: Indiana's reviewed public guidance treats this sole-proprietor name path as county-based, not Secretary-of-State-based.
- If you choose single-member LLC: Do this in order:
- If you choose single-member LLC: Check Indiana name availability in INBiz before filing.
- If you choose single-member LLC: File Articles of Organization Domestic Limited Liability Company (State Form 49459) through the Indiana Secretary of State filing system.
- If you choose single-member LLC: Name a registered agent and registered office in Indiana.
- If you choose single-member LLC: Keep your operating agreement internally and move immediately into EIN, tax registration, and banking.
- If you choose single-member LLC: If the LLC will use another public-facing name, file the Indiana Secretary of State assumed-name branch separately.
- If you choose single-member LLC: Indiana fee caveat:
- If you choose single-member LLC: The current State Form 49459 PDF reviewed on April 28, 2026 shows a $100.00 filing fee. Older official SOS guidance still shows a generic $85 online for-profit registration fee plus processing. Re-check the live INBiz checkout total before paying.
Official links
Local in.gov
Compare business types
Formation in.gov
Formation hub
Formation forms.in.gov
Default entity formation filing
Official faqs.in.gov
Registered-agent rule
Official in.gov
Fee cross-check caveat
Formation inbiz.in.gov
Ongoing entity maintenance
Local faqs.in.gov
Sole proprietor baseline
Local faqs.in.gov
Sole proprietor assumed-name rule
Local forms.in.gov
Entity assumed-name filing
Federal irs.gov
EIN overview and online application
Federal irs.gov
Entity tax treatment
Tax inbiz.in.gov
Recurring entity filing or fee
Federal inbiz.in.gov
State start-here page
Federal inbiz.in.gov
State business portal
Tax in.gov
State small business support hub
Up next EIN + banking
Part 3 of 4
Get the EIN and banking basics in place
The EIN, banking, and recordkeeping baseline before launch.
Part 3 of 4
Get the EIN and banking basics in place
The EIN, banking, and recordkeeping baseline before launch.
Short answer
Use the EIN and banking steps before you start platform onboarding, payouts, or supplier paperwork.- Step 5: Open banking and bookkeeping.
Do next: Step 4: Get your EIN.
Step details
Step 4: Get your EIN
Main guide step 4
What this step settles
Use the IRS EIN application if applicable. For many LLCs this is required. For many sole proprietors it is optional but still useful for banking, vendors, and Etsy setup.
Step 5: Open banking and bookkeeping
Main guide step 5
What this step settles
Do this right away:
- Open a business checking account.
- Use one account and one card for business only.
- Save every receipt, invoice, shipping bill, Etsy fee statement, and tax record.
- Build a tax folder and a compliance folder from day one.
Official links
Federal irs.gov
EIN overview and online application
Federal irs.gov
EIN paper form
Tax inbiz.in.gov
State tax registration
Tax in.gov
RRMC fee support
Platform in.gov
Marketplace or platform tax rule
Tax in.gov
Marketplace account maintenance branch
Tax in.gov
Resale or exemption certificate
Tax in.gov
Recordkeeping and small-business tax guide
Up next Tax + maintenance
Part 4 of 4
Close the Indiana tax and filing branch
The Indiana tax stack, registration timing, and maintenance follow-up.
Part 4 of 4
Close the Indiana tax and filing branch
The Indiana tax stack, registration timing, and maintenance follow-up.
Short answer
Keep the Indiana tax and maintenance rules together before you assume the platform solved them.- A single-member LLC generally needs one.
- Indiana business-tax registration runs through INBiz.
- Indiana's marketplace-facilitator guidance says a seller that only makes sales through a marketplace facilitator is not required to register and file Indiana sales-tax returns for those marketplace-only sales.
Do next: Step 6: Register for state tax, seller permit, or resale setup.
Step details
1. EIN
Main takeaway
A single-member LLC generally needs one.
Watch for
- A sole proprietor may not always need one federally, but it is often the cleaner operating choice for Etsy, banking, and supplier paperwork.
2. Indiana sales tax, seller permit, or equivalent registration
Main takeaway
Indiana business-tax registration runs through INBiz.
Watch for
- Indiana sales tax is 7%.
- If an Indiana tax registration is required, DOR says a Registered Retail Merchant Certificate is issued after the application is processed.
- Current DOR FAQ and handbook materials reviewed on April 28, 2026 still show a one-time $25 RRMC fee per location.
3. Marketplace or platform tax rule
Main takeaway
Indiana's marketplace-facilitator guidance says a seller that only makes sales through a marketplace facilitator is not required to register and file Indiana sales-tax returns for those marketplace-only sales.
Watch for
- Indiana's marketplace-facilitator FAQ also says a retail merchant already selling on a marketplace is not required to change existing Indiana registrations automatically. If the seller has previously registered, but now only makes marketplace sales, the seller can elect to maintain the account, close it, or adjust filing frequency.
- Indiana says a seller that maintains the registration but has no direct sales can file $0 returns.
- Indiana says a seller can close the account using Form BC-100 if the seller only sells through marketplaces or no longer has nexus under the remote-seller rules.
- If the seller is already registered or otherwise required to file, Indiana says marketplace sales are reported as exempt sales on the return.
- That marketplace-only carveout does not answer every Indiana legal question. Direct sales, multi-channel selling, local property, and employer branches still need separate review.
4. Resale purchases or exempt purchasing
Main takeaway
Practical takeaway:
Watch for
- Indiana uses Form ST-105, General Sales Tax Exemption Certificate.
- A registered retailer can use it for resale purchases.
- Indiana marketplace guidance also says a facilitator can issue ST-105 with Other and Marketplace Sales identified if the seller otherwise stays marketplace-only.
- a marketplace-only Etsy seller may still need to confirm whether the supplier accepts the marketplace-sales version of ST-105 or expects the seller to hold its own Indiana registration.
5. Entity tax treatment
Main takeaway
IRS guidance reviewed on April 28, 2026 still says a single-member LLC is usually a disregarded entity for federal income-tax purposes unless it elects corporate treatment.
Watch for
- Current Indiana tax materials reviewed for this packet still treat LLC filing as dependent on the underlying federal tax classification.
6. Entity filing-fee or franchise-tax rule
Main takeaway
Indiana's recurring public-entity maintenance filing verified for this starter lane is the biennial Business Entity Report.
Watch for
- The official INBiz page says the first report is due two years after formation or registration, then every other year, with a fee of $32.00 on INBiz and $50.00 by paper for most for-profit businesses.
- This packet did not verify a separate public Indiana LLC franchise tax or annual LLC-only state tax on the official pages reviewed.
7. If the founder changes entity type later
Main takeaway
Treat the change as a fresh compliance event.
Watch for
- Re-check EIN rules, Indiana tax registrations, RRMC status, resale-certificate handling, banking records, and Etsy account details before assuming the old setup carries over cleanly.
Sole proprietor: Register for Indiana tax, seller permit, or reseller setup
Main takeaway
Indiana business-tax registration runs through INBiz.
Watch for
- Indiana's same FAQ says a seller that previously registered, but now only makes sales on marketplaces, can elect to maintain the account, close it, or adjust filing frequency.
- If you also make direct sales, the marketplace-only answer no longer controls the whole tax branch.
Sole proprietor: Understand the tax reality
Main takeaway
Business income generally flows to the founder's federal and Indiana individual return.
Watch for
- This packet did not verify a separate Indiana franchise tax or annual LLC-only state tax that would apply to a sole proprietor.
Single-member LLC: File ongoing entity maintenance
Main takeaway
Key points:
Watch for
- due: first report due two years after formation or registration; then every other year; due on the month and day the business was formed or registered, with until the end of that month before the filing is considered past due.
- form: Business Entity Report.
Step 6: Register for state tax, seller permit, or resale setup
Main guide step 6
What this step settles
Safe practical takeaway:
- Indiana business-tax registration runs through INBiz. Older official Indiana guidance still refers to the application as BT-1, but the live registration workflow routes through INBiz.
- Indiana's marketplace-facilitator FAQ says a seller that only makes sales through a marketplace facilitator is not required to register and file Indiana sales-tax returns for those marketplace-only sales.
- If you already registered but now only make marketplace sales, Indiana says you can elect to maintain the account, close it, or adjust filing frequency.
- If you keep the account and have no direct sales, Indiana says you can file $0 returns.
- If you also make direct sales through your own site, invoices, local pickup, or in-person events, the marketplace-only carveout no longer controls the whole answer.
- If Indiana registration is required, the current DOR FAQ still shows a one-time $25 Registered Retail Merchant Certificate fee per location.
- Indiana uses Form ST-105 for resale or exemption support. Indiana's marketplace guidance also says a marketplace facilitator may issue ST-105 with Other and Marketplace Sales completed for marketplace-only sellers.
- If you plan to stay Etsy-only, keep the marketplace-only Indiana registration carveout explicit and do not assume it answers direct-sales or resale questions that have not happened yet.
- If you expect to add your own website, direct invoices, or local in-person selling, resolve the Indiana RRMC branch before launch instead of assuming Etsy's marketplace collection replaces it.
- If supplier resale support matters on day one, keep the ST-105 branch visible and confirm whether the supplier accepts the marketplace-sales version or expects a seller-held Indiana registration.
Official links
Federal irs.gov
EIN overview and online application
Federal irs.gov
EIN paper form
Tax inbiz.in.gov
State tax registration
Tax in.gov
RRMC fee support
Platform in.gov
Marketplace or platform tax rule
Tax in.gov
Marketplace account maintenance branch
Tax in.gov
Resale or exemption certificate
Tax in.gov
Recordkeeping and small-business tax guide
Federal irs.gov
Entity tax treatment
Tax inbiz.in.gov
Recurring entity filing or fee
Federal fincen.gov
BOI or other federal reporting status
Federal inbiz.in.gov
State start-here page
Federal inbiz.in.gov
State business portal
Tax in.gov
State small business support hub
03
Chapter 3 of 7
Finish the Etsy account and operations branch
Use these steps for the platform-side account, plan, operations, and eligibility work after the state basics line up.
Core chapter
What this chapter does
Etsy account setup, operations, and pre-launch readiness.How to move through it
Step 10: Choose the right platform plan.Open the Etsy branch only after the Indiana basics line up, then finish plan and operations choices.
3 parts to review • 54 source touchpoints behind the drawers.
Chapter parts
Open Part 1 when you are ready to start working through this chapter.After you start, only one part stays open at a time and the earlier ones stay easy to revisit.
Part 1 of 3
Open the Etsy account
The first account and verification work for the platform path.
Part 1 of 3
Open the Etsy account
The first account and verification work for the platform path.
Short answer
Start the platform onboarding only after the legal name, EIN, and payout details line up cleanly.Do next: Step 9: Create your Etsy shop.
Step details
Step 9: Create your Etsy shop
Platform step 1
What this step settles
Have these ready:
Why it matters: Platform registration flow: Important Etsy nuance:
- government-issued ID
- phone number
- email address
- bank account information
- tax information
- business registration details if you formed an entity
- proof of address or identity if Etsy asks
- Etsy says it does not require you to hold a business license just to sell on Etsy.
- Etsy also says you still must follow the laws that apply to you as a small business selling online.
- That means Indiana, county, Indianapolis, and home-business compliance do not disappear just because Etsy onboarding lets you proceed.
- Start at Etsy's public shop-opening guide and open the shop from Etsy.com/sell.
- Complete setup in a desktop web browser, choose the shop language, country, currency, and a compliant shop name, and turn on required two-factor authentication.
- Choose whether you are onboarding as an individual / sole proprietorship or as an incorporated business.
- Connect your bank account, add your billing card, and enroll in Etsy Payments.
- Create at least one compliant listing, choose the right item category, and set shipping and processing details accurately.
- Complete identity verification and seller-information checks. Etsy's public help says U.S. bank verification uses Plaid or manual verification, identity verification uses Persona plus government-issued ID, and missed seller-information deadlines can block payouts or place the shop into Etsy-initiated vacation mode.
Official links
Platform help.etsy.com
Platform registration guide
Platform help.etsy.com
Etsy Payments enrollment
Platform help.etsy.com
Choose individual or business onboarding path
Platform help.etsy.com
Identity verification
Platform help.etsy.com
Bank verification
Platform help.etsy.com
Seller-info confirmation overlay
Platform help.etsy.com
Platform pricing and fees
Platform help.etsy.com
Payment-processing fee detail
Platform help.etsy.com
Optional subscription
Platform etsy.com
Brand or IP program
Up next Plan + pricing
Part 2 of 3
Review the plan, pricing, and optional programs
Plan, pricing, and optional program decisions before launch.
Part 2 of 3
Review the plan, pricing, and optional programs
Plan, pricing, and optional program decisions before launch.
Short answer
Use this part for the platform plan, pricing, or optional brand and program choices that come before operations.- Step 11: Decide whether brand or IP programs belong in the initial launch.
Do next: Step 10: Choose the right platform plan.
Step details
Step 10: Choose the right platform plan
Platform step 2
What this step settles
Pricing caveat:
Why it matters: Practical rule: Price the first listings only after you account for the setup-fee possibility, listing fees, transaction fees, payment-processing fees, shipping, packaging, return risk, and any ad charges you choose to use. Treat Etsy Plus as optional. It only becomes worth testing if the shop will actually use its extra customization tools, monthly credits, and restock-request features often enough to justify the recurring fee.
- Etsy does not require a monthly seller-plan choice for a normal U.S. shop.
- As of April 28, 2026, Etsy's public fee pages show a listing fee of $0.20 per listing, listings renew every 4 months, the transaction fee is 6.5%, and U.S. payment-processing fees are 3% + $0.25.
- Etsy's public help also says a one-time shop set-up fee may apply, but the amount varies by location.
- Offsite Ads are automatically enabled. Etsy's public help still shows 15% below the public $10,000 USD prior-365-day revenue threshold, 12% at the higher tier, and a $100 per-order cap.
- Etsy Plus is optional at $10 per month and is not required for a normal Indiana first launch.
- Re-check the live Offsite Ads wording on the exact launch date if the shop is near the public revenue threshold because Etsy's public help has used slightly different at least $10,000 USD and more than $10,000 USD phrasing around when participation becomes mandatory and the lower fee applies.
Step 11: Decide whether brand or IP programs belong in the initial launch
Platform step 3
What this step settles
For a first launch, keep the brand story simple and compliant instead of overbuilding trademark work before demand is proven.
- Etsy does not have a marketplace-seller brand registry requirement you must join before a normal launch.
- What matters first is whether the item fits Etsy's allowed categories, whether you own the rights to the design or branding you are using, and whether any production partner needs to be disclosed.
- If you use print-on-demand or another production partner, Etsy says the partner must be producing your original design and must be disclosed on the applicable listings.
- If you are making the item yourself, keep your own photos, process notes, and supplier records so you can support the listing if questions come up.
- Etsy's practical IP backstop is its Reporting Portal and seller-policy enforcement, not a separate seller-side brand registry.
Official links
Platform help.etsy.com
Platform registration guide
Platform help.etsy.com
Etsy Payments enrollment
Platform help.etsy.com
Choose individual or business onboarding path
Platform help.etsy.com
Identity verification
Platform help.etsy.com
Bank verification
Platform help.etsy.com
Seller-info confirmation overlay
Platform help.etsy.com
Platform pricing and fees
Platform help.etsy.com
Payment-processing fee detail
Platform help.etsy.com
Optional subscription
Platform etsy.com
Brand or IP program
Platform help.etsy.com
Listing creation
Platform help.etsy.com
Storefront setup
Platform help.etsy.com
Return-policy setup
Platform help.etsy.com
Category, compliance, or product restriction guide
Platform help.etsy.com
Reselling and production-partner limits
Platform help.etsy.com
Shipping workflow
Platform help.etsy.com
Shipping labels
Platform help.etsy.com
Payment-account reserve
Platform help.etsy.com
Purchase Protection
Platform etsy.com
Purchase Protection legal policy
Platform help.etsy.com
Platform protection and shipping-risk checkpoint
Platform help.etsy.com
Shipping-label insurance and claims
Up next Ops + eligibility
Part 3 of 3
Finish operations and eligibility before scaling
Operations and eligibility checks before the business scales.
Part 3 of 3
Finish operations and eligibility before scaling
Operations and eligibility checks before the business scales.
Short answer
Close the operating branch only after the listing, trip, hosting, or operational eligibility checks are ready.- Step 13: Confirm product, service, or category eligibility before scaling.
Do next: Step 12: Complete the listing, shipping, and storefront branch.
Step details
Step 12: Complete the listing, shipping, and storefront branch
Platform step 4
What this step settles
Use the Etsy-specific version of this section:
Why it matters: For a beginner launch, seller-managed shipping is the baseline. Do not assume Etsy is warehousing or fulfilling ordinary shop inventory for you.
- create the first listing in Shop Manager,
- choose the right category and item type,
- upload your own product photos and any video you need,
- set processing time, shipping profile, return policy, and origin details accurately,
- disclose any production partner that qualifies,
- set up your storefront basics,
- decide whether you will buy Etsy shipping labels or use a separate carrier workflow,
- and open the shop only after the first listing is accurate enough that you could ship the first order yourself.
Step 13: Confirm product, service, or category eligibility before scaling
Platform step 5
What this step settles
Etsy allows items that are made by a seller, designed by a seller, handpicked by a seller, or sourced by a seller within Etsy's current policy boundaries.
- Etsy allows items that are made by a seller, designed by a seller, handpicked by a seller, or sourced by a seller within Etsy's current policy boundaries.
- Mass-produced resale is not generally allowed in Etsy's handmade category.
- Etsy Help says drop shipping is not allowed except in narrow craft-supply cases, and production partners are allowed only for the seller's original designs or a buyer's customization.
- Vintage items must be at least 20 years old, and craft supplies have their own rule set.
- Highly regulated, unsafe, infringing, or prohibited items can still be blocked even if Indiana would otherwise allow the business to operate.
Official links
Platform help.etsy.com
Platform registration guide
Platform help.etsy.com
Etsy Payments enrollment
Platform help.etsy.com
Choose individual or business onboarding path
Platform help.etsy.com
Identity verification
Platform help.etsy.com
Bank verification
Platform help.etsy.com
Seller-info confirmation overlay
Platform help.etsy.com
Platform pricing and fees
Platform help.etsy.com
Payment-processing fee detail
Platform help.etsy.com
Optional subscription
Platform etsy.com
Brand or IP program
Platform help.etsy.com
Listing creation
Platform help.etsy.com
Storefront setup
Platform help.etsy.com
Return-policy setup
Platform help.etsy.com
Category, compliance, or product restriction guide
Platform help.etsy.com
Reselling and production-partner limits
Platform help.etsy.com
Shipping workflow
Platform help.etsy.com
Shipping labels
Platform help.etsy.com
Payment-account reserve
Platform help.etsy.com
Purchase Protection
Platform etsy.com
Purchase Protection legal policy
Platform help.etsy.com
Platform protection and shipping-risk checkpoint
Platform help.etsy.com
Shipping-label insurance and claims
04
Chapter 4 of 7
Handle the local and city-specific branches
These local facts can still change the answer even after the state and platform path looks clear.
Optional branch
What this chapter does
Local permits, local taxes, city appendices, and location-specific operating rules.How to move through it
Review indianapolis appendix.Only turn this chapter on if your location, city, or operating model changes the answer.
2 parts to review • 11 source touchpoints behind the drawers.
Only turn this branch on if it matches your plan
These branch questions keep the main reading path clean. If one matches your situation, the relevant detail blocks below get emphasized.
Matching branch content is now highlighted below.
Chapter parts
Open Part 1 when you are ready to start working through this chapter.After you start, only one part stays open at a time and the earlier ones stay easy to revisit.
Part 1 of 2
Local permits and location checks
Indiana does not have one single, comprehensive statewide business license.
Part 1 of 2
Local permits and location checks
Indiana does not have one single, comprehensive statewide business license.
Short answer
Indiana does not have one single, comprehensive statewide business license.Do next: Review local permits and location checks.
Why this matters
Local permits and location checks
Main takeaway
Indiana does not have one single, comprehensive statewide business license.
Watch for
- For any place where the business will operate:.
- check the county assumed-name branch if relevant,.
- check the city or county zoning office,.
- ask local planning or building offices if the business will operate from home or store inventory,.
- ask whether local business-property reporting applies.
- Typical local risk areas:.
- county assumed-name filing.
- home occupation restrictions.
- zoning for storage.
- delivery or carrier traffic.
- signage.
- business tangible personal property.
Official links
Up next Indianapolis appendix
Part 2 of 2
Indianapolis Appendix
If the business operates in Indianapolis, add one more review layer.
Part 2 of 2
Indianapolis Appendix
If the business operates in Indianapolis, add one more review layer.
Short answer
If the business operates in Indianapolis, add one more review layer.Do next: Review indianapolis appendix.
Why this matters
Indianapolis Appendix
Main takeaway
If the business operates in Indianapolis, add one more review layer.
Watch for
- The official Indianapolis zoning browser should be part of the first local review for the exact address.
- The official dwelling-district zoning ordinance surfaced by the city's zoning system says home occupations must remain clearly incidental and subordinate to residential use and limits the activity area to no more than 600 square feet or 30% of the dwelling unit, whichever is less.
- The same ordinance says all on-premises activity must occur within the dwelling structure, the operator must use the dwelling as the legal and primary residence, only 1 nonresident assistant is permitted, and the use may not regularly attract more than 4 individuals simultaneously onto the premises.
- The same ordinance also restricts goods, commodities, or stock in trade received, retained, used, stored, or physically transferred from the premises, with listed exceptions. Because a home-based Etsy setup can involve inventory, prep, and delivery traffic, this packet does not treat the ordinance as a clean yes/no answer for residential operations.
- If the founder will store inventory, run prep work, or create recurring delivery traffic from home, get local confirmation before launch.
- Indiana's DLGF personal-property guidance says businesses with business tangible personal property may still have a local filing branch even though inventory is no longer taxed. If the business has local-situs property in Marion County, add that branch to the launch checklist.
05
Chapter 5 of 7
Use the hiring and insurance branch only if it matches your plan
This branch matters when you expect to hire, scale, or need the insurance follow-up tied to the business model.
Optional branch
What this chapter does
Hiring, payroll, insurance, and scale-up risk reminders.How to move through it
Review insurance reality.Only turn this branch on when hiring, payroll, or coverage questions are close enough to matter.
2 parts to review • 9 source touchpoints behind the drawers.
Only turn this branch on if it matches your plan
These branch questions keep the main reading path clean. If one matches your situation, the relevant detail blocks below get emphasized.
Matching branch content is now highlighted below.
Chapter parts
Open Part 1 when you are ready to start working through this chapter.After you start, only one part stays open at a time and the earlier ones stay easy to revisit.
Part 1 of 2
If you hire, close the employment branch first
The employee registration, payroll, and employment-program branch.
Part 1 of 2
If you hire, close the employment branch first
The employee registration, payroll, and employment-program branch.
Short answer
Use these cards if the business will hire employees or carry payroll responsibilities soon.- Indiana DWD says a new employer registers through ESS after paying the first dollar in payroll to a worker performing covered services in Indiana.
- Indiana's workers' compensation guidance says most businesses must have workers' compensation insurance.
- No separate Indiana state disability-insurance or paid-family-leave payroll program was verified on the official employer pages reviewed on April 28, 2026.
Do next: Review 1. employer registration.
Why this matters
1. Employer registration
Main takeaway
Indiana DWD says a new employer registers through ESS after paying the first dollar in payroll to a worker performing covered services in Indiana.
Watch for
- DWD says qualifying employers are assigned a State Unemployment Tax Account (SUTA) number.
- DWD also says you must keep filing quarterly wage reports until the account is officially terminated or inactivated.
- Indiana says you must keep filing quarterly wage reports until DWD officially terminates or inactivates the account, even if a quarter has no wages;.
- Indiana's new-hire reporting page says employers must report newly hired or rehired employees within 20 days after the hire or rehire date;.
2. Workers' compensation
Main takeaway
Indiana's workers' compensation guidance says most businesses must have workers' compensation insurance.
Watch for
- Coverage should be in place before or at hiring for covered workers.
3. Disability, paid leave, or similar coverage
Main takeaway
No separate Indiana state disability-insurance or paid-family-leave payroll program was verified on the official employer pages reviewed on April 28, 2026.
Watch for
- and this packet did not verify a separate Indiana state disability-insurance or paid-family-leave payroll program on the official employer pages reviewed on April 28, 2026.
4. Exemption certificate if applicable
Main takeaway
Indiana DOR issues a Worker's Compensation Exemption Clearance Certificate to certain independent contractors or taxpayers who are otherwise not required to carry workers' compensation insurance.
Watch for
- This is not the normal starter-path filing for a standard Etsy business with employees, but it exists as a conditional branch.
Official links
Official in.gov
Employer registration
Federal in.gov
Payroll start trigger and quarterly reporting
Official in.gov
New-hire reporting
Official in.gov
Workers' compensation
Official in.gov
Exemption certificate if applicable
Platform help.etsy.com
Platform protection and shipping-risk checkpoint
Platform help.etsy.com
Shipping-label insurance and claims
Up next Insurance branch
Part 2 of 2
Keep the insurance branch visible as you scale
The insurance, liability, and scale-trigger branch.
Part 2 of 2
Keep the insurance branch visible as you scale
The insurance, liability, and scale-trigger branch.
Short answer
This is the insurance and liability follow-up tied to hiring, products, services, or growth.- If you sell physical products, commercial general liability and product liability are practical early decisions even though no public Etsy-wide seller insurance threshold was identified in the reviewed source set as of April 28, 2026.
Do next: Review insurance reality.
Why this matters
Insurance reality
Main takeaway
If you sell physical products, commercial general liability and product liability are practical early decisions even though no public Etsy-wide seller insurance threshold was identified in the reviewed source set as of April 28, 2026.
Watch for
- Etsy's public Purchase Protection help says qualifying orders up to $250 may be covered, but the program is not insurance.
- Etsy's public Purchase Protection help page itself announces updates beginning May 7, 2026, so re-check both the live help page and Etsy's legal policy page if the launch or first sale happens on or after that date.
- Etsy's public shipping-label help says some label services include coverage and additional shipping insurance may be available, so shipping-label protection should be treated as shipment-specific, not as business-wide coverage.
06
Chapter 6 of 7
Keep the operating calendar and mistake list close after launch
Once you are live, use the ongoing calendar and the mistake list to keep the business on a safer path.
Core chapter
What this chapter does
The recurring compliance calendar, live-operating routine, and beginner mistakes to avoid.How to move through it
Assuming Etsy's marketplace tax collection replaces every Indiana registration branch.Use the recurring calendar first, then keep the repeated-mistake notes close after launch.
2 parts to review • 28 source touchpoints behind the drawers.
Chapter parts
Open Part 1 when you are ready to start working through this chapter.After you start, only one part stays open at a time and the earlier ones stay easy to revisit.
Part 1 of 2
Use the ongoing compliance calendar
The recurring compliance calendar grouped by timing.
Part 1 of 2
Use the ongoing compliance calendar
The recurring compliance calendar grouped by timing.
Short answer
This groups the recurring checks by when they matter after launch.- Get EIN if applicable.
- Finish the Etsy listing, storefront, and shipping branch.
- Confirm category eligibility.
Do next: Finish entity or assumed-name setup.
See checklist
Before first sale
Grouped so the launch order stays easier to scan.
- Finish entity or assumed-name setup.
- Get EIN if applicable.
- Open bank account.
- Resolve the Indiana tax branch that applies.
- Check local permits and zoning.
- Complete Etsy verification.
Before first live launch
Grouped so the launch order stays easier to scan.
- Finish the Etsy listing, storefront, and shipping branch.
- Confirm category eligibility.
- Build accurate listings.
- Set processing times, shipping settings, and return policies.
Monthly
Grouped so the launch order stays easier to scan.
- Reconcile payouts, fees, refunds, and reserves.
- Review cash reserves for taxes.
- Review margins and shipping performance.
- Check account health and listing issues.
Quarterly
Grouped so the launch order stays easier to scan.
- File Indiana sales-tax returns on the cadence assigned to your account if you hold an Indiana registration.
- File Indiana wage reports and unemployment contributions if you are an employer.
- Review estimated-tax needs if your federal or Indiana income-tax facts make them relevant.
Annual or periodic
Grouped so the launch order stays easier to scan.
- File the Indiana Business Entity Report every other year if you use an LLC.
- File Indiana business tangible personal property forms by May 15 if that local-property branch applies.
- Re-check local permit, zoning, or property-reporting renewals, especially in Indianapolis.
- Re-check insurance and Etsy policy thresholds before material growth.
Official links
Platform help.etsy.com
Platform protection and shipping-risk checkpoint
Platform help.etsy.com
Shipping-label insurance and claims
Federal irs.gov
EIN overview and online application
Federal irs.gov
EIN paper form
Local in.gov
Compare business types
Platform help.etsy.com
Platform registration guide
Platform help.etsy.com
Listing creation
Federal inbiz.in.gov
State start-here page
Up next Common mistakes
Part 2 of 2
Common Mistakes New Operators Make
The most common mistakes from the research pack plus the first-launch recommendation.
Part 2 of 2
Common Mistakes New Operators Make
The most common mistakes from the research pack plus the first-launch recommendation.
Short answer
These are the repeated errors called out in the research pack.- Treating marketplace-only, direct-sales, and resale support as the same answer.
- Using a business name before filing the right Indiana assumed-name branch.
- Mixing personal and business money.
Do next: Assuming Etsy's marketplace tax collection replaces every Indiana registration branch.
Why this matters
Practical first-launch recommendation
- If you are testing casually with minimal risk, sole proprietor can work.
- If you intend to build a real Etsy business, single-member LLC is usually the better long-term path.
Key detail
Assuming Etsy's marketplace tax collection replaces every Indiana registration branch
Keep in mind
- Treating marketplace-only, direct-sales, and resale support as the same answer
- Using a business name before filing the right Indiana assumed-name branch
- Mixing personal and business money
- Launching with restricted or poorly documented items too early
- Pricing listings without accounting for Etsy's full fee stack
- Ignoring the biennial Business Entity Report
- Treating Etsy as the compliance department
Official links
Local in.gov
Compare business types
Formation in.gov
Formation hub
Formation forms.in.gov
Default entity formation filing
Official faqs.in.gov
Registered-agent rule
Official in.gov
Fee cross-check caveat
Formation inbiz.in.gov
Ongoing entity maintenance
Federal irs.gov
EIN overview and online application
Federal irs.gov
EIN paper form
Tax inbiz.in.gov
State tax registration
Tax in.gov
RRMC fee support
Platform in.gov
Marketplace or platform tax rule
Tax in.gov
Marketplace account maintenance branch
Tax in.gov
Resale or exemption certificate
Tax in.gov
Recordkeeping and small-business tax guide
Platform help.etsy.com
Platform protection and shipping-risk checkpoint
Platform help.etsy.com
Shipping-label insurance and claims
Platform indy.gov
City start page
Platform maps.indy.gov
City zoning branch
Official gis.indy.gov
Home-occupation ordinance
Local in.gov
Local property reporting branch
07
Chapter 7 of 7
Review your selected steps and open the packet PDF
Use the review screen to decide what belongs in the packet, then open a real PDF preview in a new tab.
Finish
Review and print
Review the chapters you kept and make sure the right reminders stay visible.
Use this step to keep only the chapters that match the launch plan now, then keep the local and city reminders close before you treat the packet as final.
Saved setup choice
single-member LLCThat choice stays visible while the rest of the journey gets lighter.
Packet count
4 chapters selectedOptional branches can stay out of the packet until they match the real launch plan.
Still verify locally
6 remindersLocal tax, zoning, insurance, and platform policy changes still need the official check.
Open the working launch packet with fillable tracker rows, then print or download it from the PDF tab.
Choose what stays in the packet
Selected chapters
- Choose setup
Your setup choice, the short safe path, and the money realities that matter before spending deeply. - Indiana registrations
The Indiana and federal registration sequence, tax setup, and state-maintenance checks. - Etsy setup
Etsy account setup, operations, and pre-launch readiness. - Local and city checks
Local permits, local taxes, city appendices, and location-specific operating rules. - Hiring and insurance
Hiring, payroll, insurance, and scale-up risk reminders. - Ongoing calendar and mistakes
The recurring compliance calendar, live-operating routine, and beginner mistakes to avoid.
See local verification reminders
- Official Indiana business-filings hub with filing, reporting, update, and reinstatement branches.
- Official roadmap linking Secretary of State, EIN, DOR, DWD, and worker's compensation steps.
- Official DOR support page that points to the Indiana tax handbook and education tools.
- Official city portal. This packet did not verify one universal retail-business-license page for the standard Etsy starter lane.
- Use the actual address. This is the first local check for home-based Etsy activity.
- Official ordinance says home occupations must remain incidental and subordinate to residential use, stay within the dwelling structure, use no more than 600 square feet or 30% of the dwelling unit, allow no more than 1 nonresident assistant, and limit traffic and stock in trade on the premises.
Change your path
Need a different route into this answer?
Use one of these links if you landed in the wrong platform, wrong state, or want the state-only baseline before you keep reading.
Choose another platform Switch away from Etsy without losing the state-first flow. Choose another state for Etsy Stay on Etsy and reopen the state picker for Indiana alternatives. Open the Indiana state guide Compare the platform-specific path with the state-only baseline. Open official sources Jump straight to the official source directory if you want agency links first.