On this guide
Follow the path in order.Etsy channel guide • Michigan launch path
Start Etsy in Michigan
Decide your setup, get the Michigan 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 Michigan. 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 • 30 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 Michigan 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 Michigan 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.
- Michigan does not require a LARA 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
- Michigan does not require a LARA entity-formation filing if you operate as a sole proprietor under your own legal name.
- If you use a trade name, Michigan public guidance routes the assumed-name filing to the county clerk, not to LARA.
- 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
- Michigan LLC formation uses Articles of Organization (CSCL/CD-700) filed with LARA.
- A Michigan LLC lists a resident agent and registered office, and then keeps up the annual LLC Annual Statement.
- Federal tax treatment is usually disregarded-entity treatment by default for a single-member LLC, but Michigan still expects the business to handle tax registration, local permitting, and employer setup separately.
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
Formation michigan.gov
Compare business types
Local michigan.gov
Sole proprietor baseline
Local michigan.gov
County or local clerk lookup
Federal irs.gov
EIN overview and online application
Formation michigan.gov
LLC naming rules
Formation michigan.gov
Default entity formation filing
Platform michigan.gov
Immediate post-filing requirement
Formation michigan.gov
Ongoing entity maintenance
Federal irs.gov
Entity tax treatment
Platform michigan.gov
Michigan-specific recurring entity tax 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 Michigan.- Michigan's marketplace-only sales-tax answer is simpler than New York or Tennessee, 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.
- Etsy's public protection language is not a substitute for business insurance.
Do next: Review michigan-specific friction.
Why this matters
Michigan-specific friction
Main takeaway
Michigan's marketplace-only sales-tax answer is simpler than New York or Tennessee, but it is not the whole story if you also make direct sales.
Watch for
- Michigan pushes sole-proprietor assumed-name filings down to the county clerk, so the naming branch is local instead of one clean statewide online filing.
- Michigan's resale-certificate branch can become awkward for a marketplace-only seller if a supplier wants a Michigan sales-tax license number on Form 3372.
- Detroit adds real local tax, licensing, zoning, and occupancy review if the business operates there.
- Michigan LLC founders still need to track the recurring February 15 annual-statement deadline.
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.
- Listing fees, transaction fees, payment-processing fees, and Offsite Ads can stack quickly if you price casually.
- Restricted-category, reselling, or listing-accuracy reviews can block listings after you already bought stock.
- Etsy's public shop set-up fee is still location-variable.
Insurance reality
Main takeaway
Etsy's public protection language is not a substitute for business insurance.
Watch for
- Etsy's Purchase Protection program may cover certain qualifying buyer refunds up to $250, but Etsy says the program is not an insurance policy, warranty, or guarantee.
- Etsy Help recommends shipping insurance for higher-value orders, and commercial general liability or product liability coverage becomes more important as order volume and product risk increase.
- Etsy's current public help says Purchase Protection updates begin on May 7, 2026, so re-check the live help and legal-policy pages if your launch is on or after that date.
Official links
Formation michigan.gov
Compare business types
Formation michigan.gov
LLC naming rules
Formation michigan.gov
Default entity formation filing
Platform michigan.gov
Immediate post-filing requirement
Formation michigan.gov
Ongoing entity maintenance
Federal irs.gov
EIN overview and online application
Federal irs.gov
EIN paper form
Tax michigan.gov
Michigan tax registration
Tax michigan.gov
Sales-tax license rules
Platform michigan.gov
Marketplace or platform tax rule
Tax michigan.gov
Resale or exemption certificate
Tax michigan.gov
Recordkeeping guidance
Platform help.etsy.com
Platform protection and shipping-risk checkpoint
Platform help.etsy.com
Shipping-label insurance and claims
Federal detroitmi.gov
City tax or permit warning
Local detroitmi.gov
City zoning and occupancy branch
Local detroitmi.gov
City tax and withholding branch
02
Chapter 2 of 7
Handle the Michigan 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 Michigan 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 • 38 source touchpoints behind the drawers.
Registration sequence
Keep the Michigan 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 Michigan tax and filing branch
Keep the Michigan 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 Michigan 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, licensing, 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 Michigan assumed-name document if needed.
- Get an EIN from the IRS if applicable.
- Open a dedicated business bank account.
- Register for Michigan tax or seller permits 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, inventory, 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:.
- County fees and local form handling vary, so confirm the live county clerk instructions before filing.
Do next: Step 2: Choose your name and brand approach.
Step details
Best practical order for a Michigan single-member LLC launch
- Choose the Etsy product lane first.
- Choose the legal name and public brand plan.
- File Articles of Organization (CSCL/CD-700).
- Get the EIN.
- Open the bank account.
- Decide whether you are using the Michigan marketplace-only tax posture or registering for sales tax from day one.
- If needed, file CSCL/CD-541 for the assumed name.
- Check county and city permit, zoning, and occupancy rules.
- 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 withholding, UIA, workers' compensation, and ESTA setup.
- Track the recurring February 15 annual statement and February 28 annual sales-tax return deadlines that apply.
Sole proprietor: Decide whether you need a local assumed-name filing
Main takeaway
If you sell under your legal name:
Watch for
- County fees and local form handling vary, so confirm the live county clerk instructions before filing.
Single-member LLC: Name search and naming standards
Main takeaway
Before filing:
Single-member LLC: File the formation document
Main takeaway
Core filing:
Watch for
- Form name: Articles of Organization.
- Form number: CSCL/CD-700.
- This packet did not identify a separate Michigan LLC publication requirement.
Single-member LLC: Complete the immediate post-filing step
Main takeaway
Timing:
Watch for
- complete the internal operating and tax setup immediately after the filing is accepted.
- Adopt the operating agreement and keep it internally.
Single-member LLC: File the assumed-name or DBA form if needed
Main takeaway
If the public brand differs from the LLC legal name, Michigan uses Certificate of Assumed Name.
Watch for
- Form number: CSCL/CD-541.
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 a county 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.
- Michigan's reviewed public sole-proprietor name path is county-based rather than a statewide LARA assumed-name filing.
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, this packet did not verify a separate Michigan state entity-formation filing.
- If you choose sole proprietor: If you sell under your legal name, this packet did not verify a separate Michigan state entity-formation filing.
- If you choose sole proprietor: If you use a trade name, file the assumed-name document with the county clerk in each county where the business is carried on.
- If you choose sole proprietor: Michigan public guidance reviewed for this packet treats the sole-proprietor assumed-name path as county-based rather than LARA-based.
- If you choose single-member LLC: Do this in order:
- If you choose single-member LLC: Check Michigan naming rules and distinguishability before filing, and reserve the name if you need more time.
- If you choose single-member LLC: File Articles of Organization (CSCL/CD-700) with LARA.
- If you choose single-member LLC: Adopt the operating agreement internally, get the EIN, and put the February 15 annual-statement date on the calendar immediately.
- If you choose single-member LLC: If the LLC will use a different public-facing name, file Certificate of Assumed Name (CSCL/CD-541) with LARA.
Official links
Formation michigan.gov
Compare business types
Formation michigan.gov
LLC naming rules
Formation michigan.gov
Default entity formation filing
Platform michigan.gov
Immediate post-filing requirement
Formation michigan.gov
Ongoing entity maintenance
Local michigan.gov
Sole proprietor baseline
Local michigan.gov
County or local clerk lookup
Federal irs.gov
EIN overview and online application
Federal irs.gov
Entity tax treatment
Platform michigan.gov
Michigan-specific recurring entity tax filing or fee
Tax michigan.gov
Michigan business start page
Official michigan.gov
LARA startup roadmap
Tax michigan.gov
Treasury new-business tax 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 platform 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, platform 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 michigan.gov
Michigan tax registration
Tax michigan.gov
Sales-tax license rules
Platform michigan.gov
Marketplace or platform tax rule
Tax michigan.gov
Resale or exemption certificate
Tax michigan.gov
Recordkeeping guidance
Up next Tax + maintenance
Part 4 of 4
Close the Michigan tax and filing branch
The Michigan tax stack, registration timing, and maintenance follow-up.
Part 4 of 4
Close the Michigan tax and filing branch
The Michigan tax stack, registration timing, and maintenance follow-up.
Short answer
Keep the Michigan tax and maintenance rules together before you assume the platform solved them.- A single-member LLC generally needs an EIN.
- Michigan says retailers selling tangible personal property to the final consumer need a sales-tax license.
- Etsy, as marketplace facilitator, is the party that calculates, collects, and remits Michigan tax on qualifying Etsy-facilitated sales when it has Michigan nexus.
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 an EIN.
Watch for
- A sole proprietor may not always need one federally, but it is often practical anyway.
2. Michigan sales tax, seller permit, or equivalent registration
Main takeaway
Michigan says retailers selling tangible personal property to the final consumer need a sales-tax license.
Watch for
- Michigan's public record says the sales-tax rate is 6% and Michigan does not allow city, local, or county sales tax.
- Registration path: MTO eRegistration or mailed Form 518.
- Public timing: MTO eRegistration is authenticated within 10-15 minutes of submission; mailed Form 518 processing is listed at 4-6 weeks.
- Public license fee: none.
- Public return timing: monthly, quarterly, or annual depending on assignment, plus the annual return by February 28.
3. Marketplace or platform tax rule
Main takeaway
Etsy, as marketplace facilitator, is the party that calculates, collects, and remits Michigan tax on qualifying Etsy-facilitated sales when it has Michigan nexus.
Watch for
- Michigan's public FAQ says the marketplace-facilitator collection duty began January 1, 2020.
- If all of your sales are through facilitators with Michigan nexus, Michigan says you have no sales-tax filing obligation for those marketplace sales.
- If you also make direct sales through your own site, in-person events, or other non-marketplace lanes, Michigan says you exclude the Etsy-facilitated sales from your own return and report only the outside-marketplace activity.
4. Resale purchases or exempt purchasing
Main takeaway
Practical takeaway:
Watch for
- Michigan uses Form 3372, Michigan Sales and Use Tax Certificate of Exemption.
- The form includes a For Resale at Retail line that asks for a Michigan sales-tax license number.
- It also includes a For Resale at Wholesale line that does not ask for that number.
- source-backed inference as of April 28, 2026: a Michigan-based Etsy-only seller can have a no-filing marketplace posture, but the supplier resale-document path can still become awkward if the seller wants to claim retail resale exemption without a Michigan sales-tax license number.
- If supplier resale paperwork matters on day one, confirm the intended path with Michigan Treasury before relying on assumptions.
5. Entity tax treatment
Main takeaway
Federal default treatment for a single-member LLC is generally disregarded-entity treatment unless the owner elects otherwise.
Watch for
- This packet did **not** identify a separate general Michigan LLC franchise-tax filing for a standard single-member LLC in the public official sources reviewed on April 28, 2026.
- If you elect S corporation or C corporation treatment, or your fact pattern is more complex, mark the Michigan state-income-tax branch needs tax-specific verification.
6. Entity filing-fee or franchise-tax rule
Main takeaway
Recurring Michigan LLC state maintenance identified in the public source set is the annual statement, not a separate public franchise-tax filing.
Watch for
- Annual statement fee: $25.
- Due date: February 15.
- Use the LARA business filing system to re-check the live filing year.
7. If the founder changes entity type later
Main takeaway
source-backed inference: if you move from sole proprietor to LLC, or change FEIN-backed tax identity later, update the facts across MTO, UIA, banking, supplier files, and Etsy account records so the registrations stay consistent.
Sole proprietor: Register for Michigan tax, seller permit, or reseller setup
Main takeaway
If you will make direct retail sales, Michigan says you need a sales-tax license.
Watch for
- If all of your sales are through marketplaces managed by marketplace facilitators with Michigan nexus, Michigan's public FAQ says you have no sales-tax filing obligation for those marketplace sales.
Sole proprietor: Understand the tax reality
Main takeaway
Federal business income generally flows through to Schedule C for a standard sole proprietor.
Watch for
- Michigan income-tax exposure still exists even if you never form an LLC.
Single-member LLC: File ongoing entity maintenance
Main takeaway
Key points:
Watch for
- due: February 15 each year after organization or qualification.
- exception: if the LLC is formed after September 30, it does not file on the immediately following February 15.
- Michigan public guidance says failure to file the annual statement leaves the company no longer in good standing after two years, and the name becomes available to another entity.
Step 6: Register for state tax, seller permit, or resale setup
Main guide step 6
What this step settles
Michigan tax registration runs through MTO or mailed Form 518.
- Michigan tax registration runs through MTO or mailed Form 518.
- Michigan says retailers making direct taxable sales to the final consumer need a sales-tax license before those sales begin.
- Michigan's public marketplace-facilitator FAQ says if all of your sales are through facilitators with Michigan nexus, you generally do not have a sales-tax filing obligation for those marketplace sales.
- If you also make direct sales through your own site, invoices, local pickup, or in-person events, Michigan says you report only that outside-marketplace activity on your own return.
- Michigan uses Form 3372 for resale or exemption documentation, but the retail-resale line asks for a Michigan sales-tax license number, so a marketplace-only Etsy seller should treat the supplier resale path as a real friction point instead of assuming it will be easy.
Official links
Federal irs.gov
EIN overview and online application
Federal irs.gov
EIN paper form
Tax michigan.gov
Michigan tax registration
Tax michigan.gov
Sales-tax license rules
Platform michigan.gov
Marketplace or platform tax rule
Tax michigan.gov
Resale or exemption certificate
Tax michigan.gov
Recordkeeping guidance
Federal irs.gov
Entity tax treatment
Platform michigan.gov
Michigan-specific recurring entity tax filing or fee
Federal fincen.gov
BOI status
Tax michigan.gov
Michigan business start page
Official michigan.gov
LARA startup roadmap
Tax michigan.gov
Treasury new-business tax 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 Michigan basics line up, then finish plan and operations choices.
3 parts to review • 52 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 or license if required
- proof of address or identity if the platform asks for it
- 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 Michigan, county, Detroit, 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 the 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, 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
Practical rule:
Why it matters: 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 $10,000 USD prior-365-day revenue threshold, 12% at the higher tier, and a $100 per-order cap, but the exact threshold wording should still be re-checked if the shop is near that edge.
- Etsy Plus is optional at $10 per month and is not required for a normal Michigan first launch.
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.
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 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, returns policy, and origin details accurately,
- disclose any production partner that qualifies,
- 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 Michigan 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 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 detroit appendix.Only turn this chapter on if your location, city, or operating model changes the answer.
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
Local permits and location checks
Michigan pushes many naming, permit, zoning, and occupancy questions down to counties and municipalities.
Part 1 of 2
Local permits and location checks
Michigan pushes many naming, permit, zoning, and occupancy questions down to counties and municipalities.
Short answer
Michigan pushes many naming, permit, zoning, and occupancy questions down to counties and municipalities.Do next: Review local permits and location checks.
Why this matters
Local permits and location checks
Main takeaway
Michigan pushes many naming, permit, zoning, and occupancy questions down to counties and municipalities.
Watch for
- For any place where the business will operate:.
- check the Michigan business start pages,.
- contact the county clerk if you need an assumed-name filing,.
- contact the city, village, or township office,.
- ask zoning or building staff whether storing inventory, receiving shipments, or running business operations at the address is allowed.
- Typical local risk areas:.
- county assumed-name filing.
- home occupation restrictions.
- zoning for storage and shipment prep.
- signage.
- parking and carrier activity.
- business occupancy or building approvals.
Official links
Up next Detroit appendix
Part 2 of 2
Detroit Appendix
If the business operates in Detroit, add one more review layer.
Part 2 of 2
Detroit Appendix
If the business operates in Detroit, add one more review layer.
Short answer
If the business operates in Detroit, add one more review layer.Do next: Review detroit appendix.
Why this matters
Detroit Appendix
Main takeaway
If the business operates in Detroit, add one more review layer.
Watch for
- Detroit says some, not all, business types need a city business license.
- Detroit's BSEED licensing page says you should establish the business first and check zoning before applying.
- Detroit's zoning page says that after required inspections pass, a Certificate of Occupancy is issued, and if the land use also needs a business license, the license can then be issued. The city says only then may the new use be opened and operated.
- Detroit's local tax branch is separate enough that you should review the city's income-tax and withholding pages directly before relying on a generic Michigan-only setup 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 • 10 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.- Register Michigan withholding through MTO or Form 518.
- Michigan public guidance says coverage is required for:.
- This packet did not identify a general state-run Michigan private-employer disability-insurance registration.
Do next: Review 1. employer registration.
Why this matters
1. Employer registration
Main takeaway
Register Michigan withholding through MTO or Form 518.
Watch for
- Open the unemployment account through Michigan UIA employer registration and MiUI.
- New liable employers should re-check the assigned tax-rate notice, but Michigan's public UIA guidance says many new employers begin at 2.7% for the first two years.
2. Workers' compensation
Main takeaway
Michigan public guidance says coverage is required for:
Watch for
- private employers regularly employing 1 or more employees 35 hours or more per week for 13 weeks or longer during the preceding 52 weeks,.
- or private employers regularly employing 3 or more employees at one time, including part-time employees.
- Michigan also says a partner counts as an employee of the partnership, a corporate officer counts as an employee of the corporation, and a member who is a manager counts as an employee of an LLC.
- A sole proprietor working alone is not an employee of that sole proprietorship.
- Michigan workers' compensation generally applies when the business regularly employs 1 or more employees 35 hours or more per week for 13 weeks or longer during the prior 52 weeks, or 3 or more employees at one time.
- If an owner-exclusion form might matter, treat that branch as fact-specific and confirm the current workers' compensation form path before relying on it.
3. Disability, paid leave, or similar coverage
Main takeaway
This packet did not identify a general state-run Michigan private-employer disability-insurance registration.
Watch for
- But Michigan's Earned Sick Time Act is a live statewide employer branch.
- The public ESTA page says the act took effect February 21, 2025.
- The public ESTA FAQ says accrual begins February 21, 2025 for most employers and October 1, 2025 for a small business.
- The same FAQ says employers can satisfy the law with an existing PTO policy if it provides at least the same benefits and conditions.
- Michigan does not have a general private-employer disability-insurance registration in the public source set reviewed here, but the Earned Sick Time Act is a live branch that took effect February 21, 2025.
4. Exemption certificate if applicable
Main takeaway
Michigan public workers' compensation guidance says compliance may be achieved by purchasing insurance, self-insuring, or properly executing an exclusion form.
Watch for
- This packet did **not** verify the exact exclusion form identifier for every owner-officer scenario, so treat that owner-exemption paperwork branch as fact-specific.
Official links
Tax michigan.gov
Employer withholding registration
Official michigan.gov
Unemployment account
Official michigan.gov
Workers' compensation coverage
Official michigan.gov
Earned sick time / leave branch
Official michigan.gov
Earned sick time detail
Official michigan.gov
Exclusion form 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.- Etsy's public protection language is not a substitute for business insurance.
Do next: Review insurance reality.
Why this matters
Insurance reality
Main takeaway
Etsy's public protection language is not a substitute for business insurance.
Watch for
- Etsy's Purchase Protection program may cover certain qualifying buyer refunds up to $250, but Etsy says the program is not an insurance policy, warranty, or guarantee.
- Etsy Help recommends shipping insurance for higher-value orders, and commercial general liability or product liability coverage becomes more important as order volume and product risk increase.
- Etsy's current public help says Purchase Protection updates begin on May 7, 2026, so re-check the live help and legal-policy pages if your launch is on or after that date.
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
Buying inventory or launching before checking legal and platform restrictions.Use the recurring calendar first, then keep the repeated-mistake notes close after launch.
2 parts to review • 25 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 platform operations branch.
- Confirm category or product eligibility.
Do next: Finish entity or DBA setup.
See checklist
Before first sale
Grouped so the launch order stays easier to scan.
- Finish entity or DBA setup.
- Get EIN if applicable.
- Open bank account.
- Register for state tax permits that apply.
- Check local permits.
- Complete platform verification.
Before first live launch
Grouped so the launch order stays easier to scan.
- Finish the platform operations branch.
- Confirm category or product eligibility.
- Build accurate listings, store pages, or policies.
- Complete fulfillment or shipping setup.
Monthly
Grouped so the launch order stays easier to scan.
- Reconcile payouts, fees, refunds, and reimbursements.
- Review cash reserves for taxes.
- Review margins, inventory age, or shipping performance.
- Check account health, store errors, or suppressed listings.
Quarterly
Grouped so the launch order stays easier to scan.
- File Michigan sales-tax returns if the assigned filing cadence is quarterly.
- Review estimated-tax reserves for federal and Michigan income-tax exposure if the business is profitable.
Annual or periodic
Grouped so the launch order stays easier to scan.
- File the Michigan LLC Annual Statement by February 15 if you formed an LLC.
- File the annual Michigan sales-tax return by February 28 if the sales-tax branch applies.
- Re-check Detroit or other local permit, zoning, or city-tax renewal obligations if the business operates there.
- Re-check general liability, product liability, and shipping-insurance needs before scaling order volume or moving into riskier products.
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
Formation michigan.gov
Compare business types
Platform help.etsy.com
Platform registration guide
Platform help.etsy.com
Listing creation
Tax michigan.gov
Michigan business start 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.- Using a brand name without filing the right Michigan county assumed-name document or LARA Certificate of Assumed Name.
- Mixing personal and business money.
- Skipping tax registration because "the platform handles tax".
Do next: Buying inventory or launching before checking legal and platform restrictions.
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
Buying inventory or launching before checking legal and platform restrictions
Keep in mind
- Using a brand name without filing the right Michigan county assumed-name document or LARA Certificate of Assumed Name
- Mixing personal and business money
- Skipping tax registration because "the platform handles tax"
- Launching with regulated products too early
- Keeping weak supplier or compliance documentation
- Missing state maintenance filings
- Treating the platform as the compliance department
Official links
Formation michigan.gov
Compare business types
Formation michigan.gov
LLC naming rules
Formation michigan.gov
Default entity formation filing
Platform michigan.gov
Immediate post-filing requirement
Formation michigan.gov
Ongoing entity maintenance
Federal irs.gov
EIN overview and online application
Federal irs.gov
EIN paper form
Tax michigan.gov
Michigan tax registration
Tax michigan.gov
Sales-tax license rules
Platform michigan.gov
Marketplace or platform tax rule
Tax michigan.gov
Resale or exemption certificate
Tax michigan.gov
Recordkeeping guidance
Platform help.etsy.com
Platform protection and shipping-risk checkpoint
Platform help.etsy.com
Shipping-label insurance and claims
Federal detroitmi.gov
City tax or permit warning
Local detroitmi.gov
City zoning and occupancy branch
Local detroitmi.gov
City tax and withholding 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. - Michigan registrations
The Michigan 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
- Statewide business portal that points founders to startup resources, permits, tax, and workforce links.
- Official LARA roadmap used here as the main Michigan startup guide.
- Treasury page for online new-business registration and tax-obligation guidance.
- City page says some, not all, business types need a Detroit business license and says to establish the business and check zoning first.
- City zoning page says after required inspections a Certificate of Occupancy is issued, and if a business license is also required, only then may the new use be opened and operated.
- Use the city's current income-tax hub and re-check whether local business-income-tax or withholding filings apply to your fact pattern.
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 Michigan alternatives. Open the Michigan 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.