On this guide
Follow the path in order.Etsy channel guide • South Carolina launch path
Start Etsy in South Carolina
Decide your setup, get the South Carolina 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 South Carolina. 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 • 32 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 South Carolina 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 South Carolina 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.
- South Carolina Business One Stop says a sole proprietorship is not required to register with the South Carolina Secretary of State.
- 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
- South Carolina Business One Stop says a sole proprietorship is not required to register with the South Carolina Secretary of State.
- South Carolina does not register DBA or assumed names at the state level.
- If you want to operate under a name other than your personal name, South Carolina's official startup guidance pushes you to start with the local municipality or county where you will operate.
- Business income generally runs through your personal tax return unless you later change tax treatment.
- You usually do not get a liability shield.
Why someone chooses it
- Faster launch.
- Lower up-front filing cost.
- 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
- South Carolina LLC formation uses Articles of Organization.
- The official downloadable paper form is F0006.
- The reviewed filing system showed a base filing fee of $110.00, and the reviewed online filing example also displayed a separate SC.GOV service fee of $15.00.
- South Carolina LLC registration is separate from local business licensing, tax registration, and Etsy setup.
- South Carolina DOR corporate guidance says an LLC not taxed as a corporation is not subject to the corporate annual report and license fee.
Why someone chooses it
- Liability protection.
- Cleaner setup for banking, suppliers, bookkeeping, insurance, and scaling.
- Better fit for branded products, employees, and long-term operations.
Main downside
Higher setup friction than a sole proprietorship You still need to watch good-standing and tax-classification branches even though the default non-corporate LLC is outside the corporate annual-report path
Official links
Formation scbos.sc.gov
Compare business types
Official scbos.sc.gov
Sole proprietor baseline
Formation scbos.sc.gov
DBA or assumed-name warning
Federal irs.gov
EIN overview and online application
Formation businessfilings.sc.gov
Formation hub
Formation businessfilings.sc.gov
Business name search
Formation businessfilings.sc.gov
Default entity formation filing
Official businessfilings.sc.gov
Reviewed online filing fee example
Tax dor.sc.gov
Ongoing entity maintenance
Tax dor.sc.gov
Business tax account maintenance
Tax dor.sc.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 South Carolina.- South Carolina splits the state retail-license branch from local business licenses, so founders can miss one side if they only read the state tax page.
- Etsy can require a one-time setup fee before the shop goes live.
- If you sell physical products, look at commercial general liability and product-liability coverage before you scale.
Do next: Review south carolina-specific friction.
Why this matters
South Carolina-specific friction
Main takeaway
South Carolina splits the state retail-license branch from local business licenses, so founders can miss one side if they only read the state tax page.
Watch for
- Marketplace-only relief is real, but the answer changes the moment you add direct sales or need resale documentation.
- Charleston adds a real home-occupation and annual local-license branch for home-based sellers.
Etsy-specific friction
Main takeaway
Etsy can require a one-time setup fee before the shop goes live.
Watch for
- The fee stack is broader than just listing fees because transaction fees, processing fees, and Offsite Ads can all affect margins.
- New or growing physical-goods shops can face payout reserves, and Etsy's reserve guidance ties faster fund release to valid tracking.
- Missed seller-info confirmation deadlines can stop payouts and pause the shop.
Insurance reality
Main takeaway
If you sell physical products, look at commercial general liability and product-liability coverage before you scale.
Watch for
- No public Etsy seller-insurance threshold was verified in the reviewed sources for this South Carolina packet.
- That does not mean insurance is optional from a real-world risk perspective; it means the public reviewed record did not surface a hard Etsy insurance trigger comparable to some other marketplaces.
Official links
Formation scbos.sc.gov
Compare business types
Formation businessfilings.sc.gov
Formation hub
Formation businessfilings.sc.gov
Business name search
Formation businessfilings.sc.gov
Default entity formation filing
Official businessfilings.sc.gov
Reviewed online filing fee example
Tax dor.sc.gov
Ongoing entity maintenance
Federal irs.gov
EIN overview and online application
Federal irs.gov
EIN paper form
Tax dor.sc.gov
State tax registration
Local dor.sc.gov
Retail license page
Platform dor.sc.gov
Marketplace or platform tax rule
Tax dor.sc.gov
Resale or exemption certificate
Local dor.sc.gov
Business personal property tax
Platform help.etsy.com
Platform protection and shipping-risk checkpoint
Platform help.etsy.com
Shipping-label insurance and claims
Local charleston-sc.gov
City business-license and CO split
Local charleston-sc.gov
Home occupation branch
Official charleston-sc.gov
Business-license renewal dates
02
Chapter 2 of 7
Handle the South Carolina 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 South Carolina 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 • 40 source touchpoints behind the drawers.
Registration sequence
Keep the South Carolina 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 South Carolina tax and filing branch
Keep the South Carolina 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 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 lane inside handmade, designed-by-you, vintage, or qualifying craft supplies.
- Avoid beginner-hostile categories like food, supplements, cosmetics, medical-claim products, batteries-heavy hazmat, alcohol, and children's products unless you are doing separate category research.
- Confirm the offer is not blocked by South Carolina law, local rules, Etsy policy, or Etsy's allowed-item rules.
- Make sure you can document design ownership, vintage status, supplier legitimacy, or production-partner use where relevant.
Do these before your first sale
Grouped so the launch order stays easier to scan.
- Form the business if needed.
- Get an EIN from the IRS if applicable.
- Open a dedicated business bank account.
- Resolve whether you are staying Etsy-only or also making direct sales, because that changes the South Carolina retail-license answer.
- Check city and county business-license, home-occupation, and zoning rules where you operate.
- Create your Etsy seller account and complete identity and bank verification.
Do these before launch goes live
Grouped so the launch order stays easier to scan.
- Complete the Etsy storefront, listing, payments, and shipping branch.
- Confirm the item fits Etsy's allowed-item rules and your South Carolina / local launch model.
- Set up processing time, shipping profiles, and return-policy workflow correctly.
- Build the first listings carefully and open the shop with one or two low-risk items first.
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:.
- South Carolina does not register DBAs at the state level.
Do next: Step 2: Choose your name and brand approach.
Step details
Best practical order for a South Carolina single-member LLC launch
- Choose the Etsy-eligible product lane first.
- Choose the legal name and public brand approach.
- File the formation document.
- Get the EIN.
- Open the bank account.
- Confirm the South Carolina retail-license, marketplace-only, and resale-document branch that applies.
- Check local business-license, zoning, and home-occupation questions before launch.
- If operating in Charleston, resolve the annual local-license, home-occupation, and Certificate of Occupancy branches that apply.
- Build the Etsy account and payment setup.
- Finish the listing and shipping branch.
- If hiring, complete MyDORWAY withholding, SUITS, workers' compensation, and new-hire branches before payroll starts.
- Track local-license, tax, and good-standing obligations on the compliance calendar.
Sole proprietor: Decide whether you need local assumed-name or DBA documentation
Main takeaway
If you sell under your legal name:
Watch for
- South Carolina does not register DBAs at the state level.
- South Carolina's official startup guidance says to begin with the local municipality or county where the business will operate.
- South Carolina's small-business guidance also treats local business licensing as a separate step from state entity registration.
Single-member LLC: Name search and naming standards
Main takeaway
Before filing:
Watch for
- confirm the name is available in the South Carolina business database,.
- make sure the name is lawful,.
- and make sure it uses an accepted LLC ending.
Single-member LLC: File the formation document
Main takeaway
Core filing:
Watch for
- Form name: Articles of Organization.
- Form number: F0006.
- the organizer signs the form,.
- and the paper form remains downloadable for mail filing.
Single-member LLC: Complete the immediate post-filing step
Main takeaway
No separate ordinary South Carolina SOS post-formation filing was identified in the reviewed public sources for a standard domestic LLC.
Watch for
- Timing: immediately after the LLC is approved.
- Practical internal step: keep an operating agreement, ownership record, and internal launch records even though they were not identified as a separate mandatory public filing.
Single-member LLC: File the assumed-name or DBA documentation if needed
Main takeaway
South Carolina does not register DBAs at the state level.
Watch for
- If the LLC will operate under a name different from its legal LLC name, start with the local municipality or county and then make sure any South Carolina tax registrations and Etsy records use consistent naming.
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 local DBA or assumed-name path,
- selling your own handmade items,
- selling your own original designs,
- selling qualifying vintage,
- selling qualifying craft supplies,
- or using a disclosed production partner for your own designs.
- Etsy shop names do not replace the legal entity name or tax records behind the business.
- South Carolina does not register DBA names at the state level.
- Etsy account, bank, identity, and tax details still need to match real-world records.
Step 3: Form the business
Main guide step 3
What this step settles
If you choose sole proprietor: South Carolina Business One Stop says a sole proprietorship is not required to register with the Secretary of State.
- If you choose sole proprietor: South Carolina Business One Stop says a sole proprietorship is not required to register with the Secretary of State.
- If you choose sole proprietor: If you want documentation for a name different from your personal name, South Carolina's official startup guidance says to begin with the local municipality or county where you will operate.
- If you choose sole proprietor: If you are in Charleston, you still separately review the local business-license and home-occupation branch even though there is no state DBA filing.
- If you choose single-member LLC: Do this in order:
- If you choose single-member LLC: Search the South Carolina business database and make sure the name is available.
- If you choose single-member LLC: File Articles of Organization with the South Carolina Secretary of State.
- If you choose single-member LLC: Keep your internal operating records right away. The reviewed public South Carolina sources did not identify a separate mandatory post-filing public LLC document for the default domestic LLC path.
- If you choose single-member LLC: If the LLC will operate under a different public-facing name, document that branch with the local city or county and with any South Carolina tax registrations that request a trade or DBA name.
- If you choose single-member LLC: Calendar a South Carolina maintenance and good-standing check immediately after formation.
Official links
Formation scbos.sc.gov
Compare business types
Formation businessfilings.sc.gov
Formation hub
Formation businessfilings.sc.gov
Business name search
Formation businessfilings.sc.gov
Default entity formation filing
Official businessfilings.sc.gov
Reviewed online filing fee example
Tax dor.sc.gov
Ongoing entity maintenance
Official scbos.sc.gov
Sole proprietor baseline
Formation scbos.sc.gov
DBA or assumed-name warning
Local scbos.sc.gov
Local business-license branch
Federal irs.gov
EIN overview and online application
Tax dor.sc.gov
Business tax account maintenance
Tax dor.sc.gov
Recurring entity filing or fee
Tax scbos.sc.gov
State start-here page
Federal scbos.sc.gov
State registration and compliance hub
Local scbos.sc.gov
State local-license warning
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 most LLCs this is required. For many sole proprietors it is not always mandatory, but it is still useful for banking, supplier paperwork, 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.
- Keep business money separate from personal money.
- Save every invoice, receipt, Etsy fee statement, shipping bill, and tax record.
- Keep a sourcing folder, listing-support folder, and tax folder from day one.
Official links
Federal irs.gov
EIN overview and online application
Federal irs.gov
EIN paper form
Tax dor.sc.gov
State tax registration
Local dor.sc.gov
Retail license page
Platform dor.sc.gov
Marketplace or platform tax rule
Tax dor.sc.gov
Resale or exemption certificate
Local dor.sc.gov
Business personal property tax
Up next Tax + maintenance
Part 4 of 4
Close the South Carolina tax and filing branch
The South Carolina tax stack, registration timing, and maintenance follow-up.
Part 4 of 4
Close the South Carolina tax and filing branch
The South Carolina tax stack, registration timing, and maintenance follow-up.
Short answer
Keep the South Carolina tax and maintenance rules together before you assume the platform solved them.- A typical single-member LLC needs an EIN.
- South Carolina uses the Business Tax Application on MyDORWAY for the ordinary retail-license path.
- South Carolina's marketplace guidance says a marketplace facilitator is the retailer responsible for collecting and remitting sales and use tax on sales made through the facilitator's marketplace.
Do next: Step 6: Register for state tax, retail license, or resale setup.
Step details
1. EIN
Main takeaway
A typical single-member LLC needs an EIN.
Watch for
- A sole proprietor commonly needs one once employees are hired and may still want one for operations even when not strictly required.
2. South Carolina sales tax, retail license, or equivalent registration
Main takeaway
South Carolina uses the Business Tax Application on MyDORWAY for the ordinary retail-license path.
Watch for
- The South Carolina Retail License fee is $50 and is non-refundable.
- South Carolina says these licenses do not expire, but you must update the license if the business location changes.
- South Carolina says every person who engages in business in South Carolina as a retailer must obtain a retail license before making taxable retail sales, including internet sales.
- South Carolina says each business location needs its own retail license.
- South Carolina also says the retail license is not the same as the local business license.
3. Marketplace or platform tax rule
Main takeaway
South Carolina's marketplace guidance says a marketplace facilitator is the retailer responsible for collecting and remitting sales and use tax on sales made through the facilitator's marketplace.
Watch for
- South Carolina's marketplace guidance says a third party whose products are sold only through a marketplace operated by a marketplace facilitator is not required to obtain a retail license or remit South Carolina sales and use tax on those marketplace sales.
- South Carolina's marketplace guidance also says that if the third party sells through its own website or retail store in addition to marketplace-facilitator sales, the third party is required to obtain a retail license and remit tax on those direct sales.
- South Carolina's marketplace guidance further says that a marketplace-only seller that currently holds a South Carolina retail license does not need that license for marketplace-only sales and should close the account if it no longer has direct sales.
4. Resale purchases or exempt purchasing
Main takeaway
South Carolina identifies ST-8A as the resale certificate for licensed retail merchants buying tangible personal property for resale, lease, or rental.
Watch for
- If a supplier asks for resale documentation, re-check the current ST-8A instructions and your licensing status before handing over a resale certificate.
- If the business is truly marketplace-only and not holding its own retail license, do not assume the resale-document branch works the same way as it would for a directly licensed retailer.
5. Entity tax treatment
Main takeaway
The reviewed public South Carolina sources did not identify a separate South Carolina entity income-tax return for a default single-member LLC simply because it exists.
Watch for
- South Carolina DOR corporate guidance instead turns on whether the LLC is taxed as a corporation.
- If the founder changes federal tax elections, refresh the South Carolina tax branch before filing.
6. Entity filing-fee or franchise-tax rule
Main takeaway
South Carolina DOR corporate guidance says an LLC not taxed as a corporation is not subject to the corporate annual report and license fee.
Watch for
- If the LLC is taxed as a corporation, that corporate branch becomes live.
- Separate from that, South Carolina may still impose business personal property tax based on the business's classification and property facts.
7. If the founder changes entity type later
Main takeaway
If you move from sole proprietor to LLC, or change EIN-backed tax identity later, update the facts across MyDORWAY, local business-license records, banking, supplier files, and Etsy account records so the registrations stay consistent.
Sole proprietor: Register for South Carolina tax, seller permit, or reseller setup
Main takeaway
Use the Business Tax Application on MyDORWAY if you need a South Carolina retail license or other state tax accounts.
Watch for
- South Carolina Business One Stop says a local business license and a South Carolina retail license are different licenses and that businesses typically need both where the local jurisdiction requires a business license.
- South Carolina's marketplace guidance says a third-party seller whose products are sold only through a marketplace facilitator is not required to obtain a retail license or remit tax for those marketplace sales.
Sole proprietor: Understand the tax reality
Main takeaway
Sole-proprietor business income generally flows through to the owner's own tax return.
Watch for
- South Carolina separately cares about sales-tax, withholding, and business-personal-property-tax branches where they apply.
- If inventory was acquired tax free for resale and later used by the business instead of sold, a sales or use tax consequence can still become relevant.
Single-member LLC: Re-check ongoing entity maintenance
Main takeaway
Key points:
Watch for
- South Carolina Secretary of State guidance says Limited Liability Companies must file for reinstatement within two years of an administrative dissolution.
- South Carolina Department of Revenue corporate guidance says A Limited Liability Company (LLC) not taxed as a corporation is not subject to the corporate annual report or corporate license fee.
- The same South Carolina Department of Revenue guidance says an LLC taxed as a corporation must complete CL-1, Initial Annual Report of Corporations, and then follow the corporate filing path.
Step 6: Register for state tax, retail license, or resale setup
Main guide step 6
What this step settles
Safe practical takeaway:
- South Carolina uses the Business Tax Application on MyDORWAY for the ordinary tax-registration path.
- South Carolina's retail-license page says every person who engages in business in South Carolina as a retailer must obtain a Retail License before making taxable retail sales, including internet sales.
- The South Carolina Retail License fee is $50 and is non-refundable.
- South Carolina says these retail licenses do not expire, but you must update the license if the business location changes.
- South Carolina says the retail license is not the same as a local business license.
- South Carolina's marketplace guidance says a third-party seller whose products are sold only through a marketplace operated by a marketplace facilitator is not required to obtain its own retail license or remit sales tax on those marketplace sales.
- The same South Carolina marketplace guidance says that if the seller also sells through its own website or a retail store, the seller is a retailer for those direct sales and must obtain a retail license and remit tax on those direct sales.
- South Carolina's sales-tax exemptions page identifies Form ST-8A as the resale certificate used by licensed retail merchants buying tangible personal property for resale, lease, or rental.
- If you plan to stay Etsy-only, keep the marketplace-only retail-license nuance visible and document that branch carefully.
- If you expect to add your own website, local pop-ups, or other direct sales, get the South Carolina retail-license branch right before launch instead of assuming Etsy collection replaces it.
- If a supplier asks for resale paperwork, re-check the current South Carolina ST-8A instructions and your licensing status on the action date before handing over a resale certificate.
Official links
Federal irs.gov
EIN overview and online application
Federal irs.gov
EIN paper form
Tax dor.sc.gov
State tax registration
Local dor.sc.gov
Retail license page
Platform dor.sc.gov
Marketplace or platform tax rule
Tax dor.sc.gov
Resale or exemption certificate
Local dor.sc.gov
Business personal property tax
Tax dor.sc.gov
Business tax account maintenance
Tax dor.sc.gov
Recurring entity filing or fee
Federal fincen.gov
BOI or other federal reporting status
Tax scbos.sc.gov
State start-here page
Federal scbos.sc.gov
State registration and compliance hub
Local scbos.sc.gov
State local-license warning
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: Understand Etsy's fee stack before you price anything.Open the Etsy branch only after the South Carolina basics line up, then finish plan and operations choices.
3 parts to review • 35 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 and enroll in Etsy Payments.
Step details
Step 9: Create your Etsy shop and enroll in Etsy Payments
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
- debit or credit card for Etsy billing
- 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 South Carolina and local compliance do not disappear just because Etsy onboarding lets you proceed.
- Start at Sell on Etsy and choose Open your Etsy shop.
- Choose the shop language, country, currency, and a compliant shop name.
- Before publishing the shop, choose your payment methods and set up billing.
- Pay the one-time, non-refundable shop set-up fee if Etsy shows one for your location.
- Enroll in Etsy Payments, choosing Individual if you are not using a registered business entity and Business if you are.
- If your bank account is located in the United States, use Plaid to verify the bank account.
- Complete identity verification through Persona using a government ID and a selfie.
- Add at least one compliant listing and publish only after the listing, billing, and payout setup are accurate.
Official links
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 you need branding and production-partner setup on day one.
Do next: Step 10: Understand Etsy's fee stack before you price anything.
Step details
Step 10: Understand Etsy's fee stack before you price anything
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, refund risk, and any advertising charges you choose to use.
- Etsy's current fee help says the shop set-up fee is one-time, non-refundable, and varies by location.
- The listing fee is $0.20 per listing, and a listing expires after 4 months.
- Etsy's transaction fee is 6.5% of the total order amount in the listing currency, including shipping and gift wrap if charged.
- Etsy's payment-processing-fee table currently lists United States at 3% + $0.25.
- Etsy's Offsite Ads help says shops below $10,000 in Etsy revenue over the prior 365 days pay 15% on attributed orders, while shops at or above that threshold pay 12%, capped at $100 per order.
- Etsy automatically enrolls sellers in Offsite Ads, although shops below the public revenue threshold may opt out.
Step 11: Decide whether you need branding and production-partner setup on day one
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 allows items that are made, designed, handpicked, or sourced by the seller, subject to its marketplace rules.
- Reselling mass-produced items as handmade is not allowed.
- If you use a production partner, Etsy says the partner must physically produce items based on your original designs and must be disclosed on the applicable listings.
- Materials suppliers, wholesalers, white-label manufacturers, and commercial retailers are not production partners for Etsy disclosure purposes.
- 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
Open a shop
Platform help.etsy.com
Etsy Payments
Platform help.etsy.com
Identity verification
Platform help.etsy.com
Bank verification
Platform help.etsy.com
Seller-info confirmation
Platform help.etsy.com
Allowed-item policy
Platform help.etsy.com
Production partners
Platform help.etsy.com
Etsy fees and taxes overview
Platform help.etsy.com
Payment-processing-fee table
Platform help.etsy.com
Offsite Ads
Platform help.etsy.com
U.S. state sales tax on Etsy orders
Platform help.etsy.com
Payment-account reserve
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 category and policy 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. Etsy does not warehouse ordinary shop inventory for you.
- create the first listing in Shop Manager,
- finish the storefront basics such as the shop banner, icon, About section, and policy-facing profile fields,
- 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,
- 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 category and policy eligibility before scaling
Platform step 5
What this step settles
If the product lane depends on heavy sourcing, white-label inventory, or a fuzzy handmade claim, stop and re-check eligibility before you scale the shop.
- Handmade listings must be physically made by you or produced from your original designs in a way Etsy allows.
- Vintage items must be at least 20 years old.
- Craft or party supplies must fit Etsy's current creativity standards instead of being ordinary ready-to-use retail goods.
- Prohibited items include alcohol, drugs, many dangerous items, highly regulated items, and other restricted categories listed in Etsy's policy.
- Etsy's current drop-shipping / reselling guidance says drop shipping is not allowed except for a limited craft-and-party-supplies exception.
Official links
Platform help.etsy.com
Open a shop
Platform help.etsy.com
Etsy Payments
Platform help.etsy.com
Identity verification
Platform help.etsy.com
Bank verification
Platform help.etsy.com
Seller-info confirmation
Platform help.etsy.com
Allowed-item policy
Platform help.etsy.com
Production partners
Platform help.etsy.com
Etsy fees and taxes overview
Platform help.etsy.com
Payment-processing-fee table
Platform help.etsy.com
Offsite Ads
Platform help.etsy.com
U.S. state sales tax on Etsy orders
Platform help.etsy.com
Payment-account reserve
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 charleston 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
South Carolina pushes many real-world licensing and location questions down to cities and counties.
Part 1 of 2
Local permits and location checks
South Carolina pushes many real-world licensing and location questions down to cities and counties.
Short answer
South Carolina pushes many real-world licensing and location questions down to cities and counties.Do next: Review local permits and location checks.
Why this matters
Local permits and location checks
Main takeaway
South Carolina pushes many real-world licensing and location questions down to cities and counties.
Watch for
- For any place where the business will operate:.
- check SCBOS,.
- check city or county business offices,.
- check local zoning or planning offices,.
- and check whether a home-occupation approval, business license, or certificate of occupancy applies.
- Typical local risk areas:.
- city or county business licensing.
- home occupation approval.
- certificate of occupancy for commercial space.
- zoning for storage.
- delivery activity from a residence.
Official links
Tax scbos.sc.gov
State start-here page
Federal scbos.sc.gov
State registration and compliance hub
Local scbos.sc.gov
State local-license warning
Local charleston-sc.gov
City business-license and CO split
Local charleston-sc.gov
Home occupation branch
Official charleston-sc.gov
Business-license renewal dates
Up next Charleston appendix
Part 2 of 2
Charleston Appendix
If the business operates in Charleston, add one more review layer.
Part 2 of 2
Charleston Appendix
If the business operates in Charleston, add one more review layer.
Short answer
If the business operates in Charleston, add one more review layer.Do next: Review charleston appendix.
Why this matters
Charleston Appendix
Main takeaway
If the business operates in Charleston, add one more review layer.
Watch for
- Charleston requires a business license for business activity in the city.
- Charleston requires a Home Occupation Application plus a business license for a business operating from the owner's home in the city.
- A physical commercial location in Charleston also needs a Certificate of Occupancy.
- Charleston business licenses expire every year on April 30, with renewal due starting May 1 and delinquent penalties after June 30.
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 2. unemployment insurance.Only turn this branch on when hiring, payroll, or coverage questions are close enough to matter.
2 parts to review • 14 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.- South Carolina Business One Stop says employers hiring employees must complete Form I-9, verify employment status through E-Verify, report South Carolina new hires, register for state withholding, register for South Carolina unemployment insurance tax, maintain workers' compensation coverage, and post required labor posters.
- The South Carolina Workers' Compensation Commission says businesses that regularly employ four or more employees within South Carolina generally must maintain workers' compensation coverage.
- The reviewed official public South Carolina sources did not identify a statewide paid-family-leave or state disability-insurance payroll program for the default private Etsy-seller path as of April 28, 2026.
Do next: Review 1. employer registration.
Why this matters
1. Employer registration
Main takeaway
South Carolina Business One Stop says employers hiring employees must complete Form I-9, verify employment status through E-Verify, report South Carolina new hires, register for state withholding, register for South Carolina unemployment insurance tax, maintain workers' compensation coverage, and post required labor posters.
Watch for
- South Carolina says the Illegal Immigration Reform Act requires employers to verify the legal status of new employees within three days of employment.
- South Carolina says new hires and rehires must be reported within 20 days.
- South Carolina says every employer or withholding agent with an employee earning wages in South Carolina and otherwise required to file or deposit with the IRS must make South Carolina withholding returns or deposits.
- South Carolina Business One Stop says employers must verify a new employee's legal status through E-Verify within three days of employment.
- South Carolina Business One Stop says employers must report newly hired or rehired employees within 20 days.
- South Carolina DEW says liable employers must submit quarterly wage reports.
- South Carolina DEW says a for-profit business becomes liable for South Carolina unemployment tax if it pays at least $1,500 in wages in any calendar quarter or has at least one employee during any 20 weeks in a calendar year, among other triggers.
3. Workers' compensation
Main takeaway
The South Carolina Workers' Compensation Commission says businesses that regularly employ four or more employees within South Carolina generally must maintain workers' compensation coverage.
Watch for
- The same Commission FAQ says part-time workers and family members are counted as employees for this general rule.
- The Commission also lists exceptions, including businesses employing fewer than 4 employees or businesses with annual payroll of less than $3,000.00, plus several category-specific exemptions.
4. Disability, paid leave, or similar coverage
Main takeaway
The reviewed official public South Carolina sources did not identify a statewide paid-family-leave or state disability-insurance payroll program for the default private Etsy-seller path as of April 28, 2026.
Watch for
- South Carolina's wage FAQ says state law does not require employers to provide paid vacation or sick time.
- The same FAQ says that if an employer decides to provide benefits, it must give notice of the policy, follow the policy, and avoid discriminatory administration.
5. Exemption certificate if applicable
Main takeaway
South Carolina DEW lists Application for Exemption of Business Entity Owners from Unemployment Insurance Coverage (UCE 1060) and Application for Exemption of Corporate Officers from Unemployment Insurance Coverage (UCE 1050) among its forms.
Watch for
- Those exemption branches are not the default path for an ordinary Etsy business with employees, but they exist and should be reviewed if the owner is structuring payroll around them.
Official links
Official scbos.sc.gov
Employer startup checklist
Official scbos.sc.gov
State withholding
Official dew.sc.gov
UI liability and reports
Official wcc.sc.gov
Workers' compensation
Official llr.sc.gov
Wage and leave baseline
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.- South Carolina DEW says a for-profit business is liable for quarterly UI tax contributions if it pays $1,500 or more in wages in any calendar quarter or has at least one employee during any 20 weeks in a calendar year, among other triggers.
- If you sell physical products, look at commercial general liability and product-liability coverage before you scale.
Do next: Review 2. unemployment insurance.
Why this matters
2. Unemployment insurance
Main takeaway
South Carolina DEW says a for-profit business is liable for quarterly UI tax contributions if it pays $1,500 or more in wages in any calendar quarter or has at least one employee during any 20 weeks in a calendar year, among other triggers.
Watch for
- South Carolina DEW says liable employers must establish an unemployment tax account, preserve employee records, submit quarterly wage reports, and pay taxes according to the current rate.
- South Carolina DEW says Quarterly Contribution and Wage Reports are due by the last day of the month after the quarter ends.
Insurance reality
Main takeaway
If you sell physical products, look at commercial general liability and product-liability coverage before you scale.
Watch for
- No public Etsy seller-insurance threshold was verified in the reviewed sources for this South Carolina packet.
- That does not mean insurance is optional from a real-world risk perspective; it means the public reviewed record did not surface a hard Etsy insurance trigger comparable to some other marketplaces.
Official links
Official scbos.sc.gov
Employer startup checklist
Official scbos.sc.gov
State withholding
Official dew.sc.gov
UI liability and reports
Official wcc.sc.gov
Workers' compensation
Official llr.sc.gov
Wage and leave baseline
Platform help.etsy.com
Platform protection and shipping-risk checkpoint
Platform help.etsy.com
Shipping-label insurance and claims
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 answers every South Carolina retail-license question.Use the recurring calendar first, then keep the repeated-mistake notes close after launch.
2 parts to review • 26 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 storefront and listing branch.
- Confirm category and policy eligibility.
Do next: Finish entity or local naming setup.
See checklist
Before first sale
Grouped so the launch order stays easier to scan.
- Finish entity or local naming setup.
- Get EIN if applicable.
- Open bank account.
- Confirm the South Carolina retail-license and marketplace-only branch that applies.
- Check local business-license, zoning, and home-occupation questions.
- Complete Etsy verification.
Before first live launch
Grouped so the launch order stays easier to scan.
- Finish the Etsy storefront and listing branch.
- Confirm category and policy eligibility.
- Build accurate listings, shop policies, and shipping settings.
- Confirm the business can operate lawfully from the chosen location.
Monthly
Grouped so the launch order stays easier to scan.
- Reconcile payouts, fees, refunds, and advertising charges.
- Review cash reserves for taxes and refunds.
- Review margins, shipping performance, and reserve risk.
- Check Shop Manager for policy or seller-info requests.
Quarterly
Grouped so the launch order stays easier to scan.
- Follow the sales-tax or employer cadence assigned by DOR or DEW if you registered for those accounts.
- Review whether the business has shifted from marketplace-only sales into direct-sales activity that changes the retail-license answer.
Annual or periodic
Grouped so the launch order stays easier to scan.
- Re-check South Carolina good standing if you formed an LLC.
- Local business-license branches can renew on city-specific calendars, including Charleston's April 30 expiration cycle.
- Re-check local permit renewals and home-business compliance.
- Re-check insurance as product mix or sales volume changes.
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 scbos.sc.gov
Compare business types
Platform help.etsy.com
Open a shop
Platform help.etsy.com
Etsy fees and taxes overview
Tax scbos.sc.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.- Using a trade name without checking the local documentation path.
- Treating a handmade / vintage / craft-supplies classification as obvious when it is not.
- Mixing personal and business money.
Do next: Assuming Etsy's marketplace tax collection answers every South Carolina retail-license question.
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 selling physical goods, single-member LLC is usually the better long-term path.
Key detail
Assuming Etsy's marketplace tax collection answers every South Carolina retail-license question
Keep in mind
- Using a trade name without checking the local documentation path
- Treating a handmade / vintage / craft-supplies classification as obvious when it is not
- Mixing personal and business money
- Ignoring local home-business rules because the shop is "online only"
- Launching physical goods without tracking and shipping discipline
- Missing seller-info or payout-verification requests from Etsy
- Treating the platform as the compliance department
Official links
Formation scbos.sc.gov
Compare business types
Formation businessfilings.sc.gov
Formation hub
Formation businessfilings.sc.gov
Business name search
Formation businessfilings.sc.gov
Default entity formation filing
Official businessfilings.sc.gov
Reviewed online filing fee example
Tax dor.sc.gov
Ongoing entity maintenance
Federal irs.gov
EIN overview and online application
Federal irs.gov
EIN paper form
Tax dor.sc.gov
State tax registration
Local dor.sc.gov
Retail license page
Platform dor.sc.gov
Marketplace or platform tax rule
Tax dor.sc.gov
Resale or exemption certificate
Local dor.sc.gov
Business personal property tax
Platform help.etsy.com
Platform protection and shipping-risk checkpoint
Platform help.etsy.com
Shipping-label insurance and claims
Local charleston-sc.gov
City business-license and CO split
Local charleston-sc.gov
Home occupation branch
Official charleston-sc.gov
Business-license renewal dates
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. - South Carolina registrations
The South Carolina 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 startup hub that routes founders into structure, licensing, tax, and employer branches.
- Official state compliance portal that routes founders to Secretary of State, tax, and EIN steps.
- South Carolina says there is no statewide business license and that local city or county licensing can still apply, including to home-based and online businesses.
- Charleston says a business license is required for business activity in the city and that a physical commercial location also needs a separate Certificate of Occupancy application.
- Charleston says any home occupation within city limits requires a home-occupation application and a business license, must remain incidental and subordinate to residential use, and requires reapplication after a move.
- Charleston says business licenses expire on April 30, the fee is due on May 1, payable by May 31, and delinquent penalties accrue after June 30.
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 South Carolina alternatives. Open the South Carolina 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.