LaunchPath

Flagship channel-state reference guide

Start Etsy in South Carolina: full reference guide

Use this page when you want the complete dense version: all sections, all appendices, and the full official source directory in one scrollable reference surface.

Last verified: April 28, 2026 Reference mode Dense appendix

Built from reviewed public pages for South Carolina, IRS, FinCEN, Charleston, Etsy. Use it as a first-pass guide, then verify the official links that match your setup.

How to use this page

Dense appendix modeFull source directory attachedLast verified April 28, 2026

This version favors completeness over pacing. Use it when you need the appendix, the dense source trail, or the full long-form reference in one place.

Best reading order

  1. Use the fast-answer and official-links sections first if you only need the main route and source trail.
  2. Open the entity, setup, tax, and local sections only where your exact launch path actually branches.
  3. Use the full source directory last as the appendix, not the starting point, unless you already know the exact agency task.
Fast answer appendix Official links first Full source directory
Back to the guided journey

Reference mode

Everything in one dense page

The guided journey is the easier starting point. This page keeps the full accordion guide and source appendix when you want the complete research-backed reference view.

Best when you need

  • The full section map in one scroll without the lighter journey framing.
  • The appendix and official-source directory preserved next to the answer sections.
  • A clearer audit trail before you print, compare, or cross-check another route.

Still better handled in the journey

  • First-pass reading when you want the shortest, safest beginner route.
  • Deciding what to do first before you need the full appendix.
  • Switching states or platforms quickly without reading the full dense version.
Reference map
Start here Fast answer If you want to open Etsy in South Carolina, you usually need to do five things in order: Everyone 5 steps

If you want to open Etsy in South Carolina, you usually need to do five things in order:

  1. Choose an Etsy-eligible product lane and your setup: sole proprietorship vs single-member LLC.
  2. Put the federal, South Carolina, and local registrations in place before launch, especially the retail-license and local business-license branches.
  3. Verify city or county home-business, zoning, and permit rules where you operate, especially if you are in Charleston.
  4. Open and verify your Etsy shop, billing setup, and Etsy Payments account.
  5. Launch only after your listing, shipping, sourcing, and tax setup are ready.

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.

Avoid these first-launch mistakes

  • Assuming Etsy's marketplace tax collection answers every South Carolina retail-license question
  • Using a trade name without checking the local documentation path
  • Treating a handmade / vintage / craft-supplies classification as obvious when it is not

South Carolina-specific friction

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.

  • 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.
  • 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

Etsy can require a one-time setup fee before the shop goes live.

  • Etsy can require a one-time setup fee before the shop goes live.
  • 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

If you sell physical products, look at commercial general liability and product-liability coverage before you scale.

  • If you sell physical products, look at commercial general liability and product-liability coverage before you scale.
  • 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.
Back to top Next: Quick-start checklist
Checklist Quick-start checklist Use the research-backed checklist groups before you spend, before your first sale, and before launch goes live. Everyone 3 groups

Do these before you spend money

  • 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

  • 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

  • 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.
Back to top Next: Official links you will use first
Choose your setup Entity choice Compare the sole-proprietor and single-member LLC paths before banking, tax setup, and platform onboarding. Everyone 2 options

Sole proprietor

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 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

Back to top Next: What to do in order
Main path What to do in order The full end-to-end setup path, kept in the same order as the researched guide. Everyone 14 steps

  1. Step 1: Choose a low-risk Etsy launch model

    Main guide step 1

    For a first launch, stay inside the safest lane:

    Why it matters: Practical rule: If the offer touches health, safety, children, dangerous goods, cosmetics, ingestibles, or obvious IP risk, slow down and do category-specific compliance research before listing anything.

    • handmade goods you actually make
    • original designs you can document as your own
    • clearly qualifying vintage items that are at least 20 years old
    • clearly qualifying craft or party supplies
    • no high-risk categories from food, supplements, cosmetics, medical claims, batteries-heavy hazmat, alcohol, children's products
    • no products that need specialized approvals unless you deliberately want a more complex compliance path

  2. Step 2: Choose your name and brand approach

    Main guide step 2

    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.

  3. Step 3: Form the business

    Main guide step 3

    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.

  4. Step 4: Get your EIN

    Main guide step 4

    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.

  5. Step 5: Open banking and bookkeeping

    Main guide step 5

    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.

  6. Step 6: Register for state tax, retail license, or resale setup

    Main guide step 6

    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.

  7. Step 7: Check local permits, city rules, and home-business limits

    Main guide step 7

    South Carolina does not have one statewide general business license.

    Why it matters: Do this before operating: For Charleston specifically:

    • check SCBOS,
    • check the city or county business office where you will operate,
    • check local zoning or planning if the business will use a home address,
    • check whether a home occupation or certificate of occupancy applies,
    • and ask about inventory storage, deliveries, signage, or other activity triggers.
    • Charleston says a business operating or generating income in the city is required to pay an annual business-license fee.
    • Charleston says a business operating out of the owner's home in the city is required to complete a Home Occupation Application and obtain a business license.
    • Charleston's dedicated home-occupation page says the home occupation must remain incidental and subordinate to the residential use, stays effective only while you remain at the same location, and requires reapplication if you move.
    • Charleston says a business with a physical commercial location in the city also needs a Certificate of Occupancy.
    • Charleston says all business licenses expire on April 30 of each year, the renewal fee is due on May 1, payable by May 31, and delinquent renewal penalties accrue after June 30.

  8. Step 8: If you hire employees, handle payroll registrations and insurance

    Main guide step 8

    If you do not hire anyone yet, skip this for now.

    Why it matters: If you hire:

    • Register for South Carolina withholding through MyDORWAY.
    • 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 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.
    • South Carolina DEW says liable employers must submit quarterly wage reports.
    • The South Carolina Workers' Compensation Commission says businesses that regularly employ four or more employees within South Carolina generally must maintain workers' compensation coverage.
    • South Carolina's wage FAQ says state law does not require an employer to provide paid vacation or sick time, but if the employer chooses to offer benefits it must follow its policy.

  9. Step 9: Create your Etsy shop and enroll in Etsy Payments

    Main guide step 9

    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.

  10. Step 10: Understand Etsy's fee stack before you price anything

    Main guide step 10

    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.

  11. Step 11: Decide whether you need branding and production-partner setup on day one

    Main guide step 11

    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.

  12. Step 12: Complete the listing, shipping, and storefront branch

    Main guide step 12

    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.

  13. Step 13: Confirm category and policy eligibility before scaling

    Main guide step 13

    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.

  14. Step 14: Launch with a compliance-first operating routine

    Main guide step 14

    Once live, keep these habits:

    • reconcile payouts, fees, refunds, and advertising charges
    • keep tracking and shipping performance tight
    • maintain invoices and sourcing records
    • keep tax reserves separate
    • avoid mixing personal and business spending
    • monitor policy messages, seller-info requests, and payout changes

Best practical order for the LLC launch path

  1. Choose the Etsy-eligible product lane first.
  2. Choose the legal name and public brand approach.
  3. File the formation document.
  4. Get the EIN.
  5. Open the bank account.
  6. Confirm the South Carolina retail-license, marketplace-only, and resale-document branch that applies.
  7. Check local business-license, zoning, and home-occupation questions before launch.
  8. If operating in Charleston, resolve the annual local-license, home-occupation, and Certificate of Occupancy branches that apply.
  9. Build the Etsy account and payment setup.
  10. Finish the listing and shipping branch.
  11. If hiring, complete MyDORWAY withholding, SUITS, workers' compensation, and new-hire branches before payroll starts.
  12. Track local-license, tax, and good-standing obligations on the compliance calendar.
Back to top Next: South Carolina tax stack
State filing and tax South Carolina tax stack Keep the South Carolina registration, tax, and maintenance rules together while you launch. Everyone 7 checks

1. EIN

A typical single-member LLC needs an EIN.

  • A typical single-member LLC needs an EIN.
  • 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

South Carolina uses the Business Tax Application on MyDORWAY for the ordinary retail-license path.

  • South Carolina uses the Business Tax Application on MyDORWAY for the ordinary retail-license path.
  • 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

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.

  • 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.
  • 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

South Carolina identifies ST-8A as the resale certificate for licensed retail merchants buying tangible personal property for resale, lease, or rental.

  • South Carolina identifies ST-8A as the resale certificate for licensed retail merchants buying tangible personal property for resale, lease, or rental.
  • 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

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.

  • 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.
  • 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

South Carolina DOR corporate guidance says an LLC not taxed as a corporation is not subject to the corporate annual report and license fee.

  • South Carolina DOR corporate guidance says an LLC not taxed as a corporation is not subject to the corporate annual report and license fee.
  • 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

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.

  • 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.
Back to top Next: Etsy account and operations
Platform setup Etsy account and operations Use this section for the Etsy-specific account, plan, eligibility, and operations work. Everyone 5 steps

  1. Step 9: Create your Etsy shop and enroll in Etsy Payments

    Platform step 1

    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.

  2. Step 10: Understand Etsy's fee stack before you price anything

    Platform step 2

    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.

  3. Step 11: Decide whether you need branding and production-partner setup on day one

    Platform step 3

    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.

  4. Step 12: Complete the listing, shipping, and storefront branch

    Platform step 4

    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.

  5. Step 13: Confirm category and policy eligibility before scaling

    Platform step 5

    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.
Back to top Next: Local permits and Charleston branch
Local branch Local permits and Charleston branch These local and city checks can still change the answer even after the state and platform path is clear. Location-specific 2 branches

Local permits and location checks

South Carolina pushes many real-world licensing and location questions down to cities and counties.

  • South Carolina pushes many real-world licensing and location questions down to cities and counties.
  • 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

Charleston Appendix

If the business operates in Charleston, add one more review layer.

  • If the business operates in Charleston, add one more review layer.
  • 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.
Back to top Next: Employees and insurance
Optional branch Employees and insurance Use this branch if you plan to hire or need the insurance follow-up that comes with scaling. Only if hiring or scaling 6 branches

1. Employer registration

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.

  • 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.
  • 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.

2. Unemployment insurance

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.

  • 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.
  • 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.

3. Workers' compensation

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 South Carolina Workers' Compensation Commission says businesses that regularly employ four or more employees within South Carolina generally must maintain workers' compensation coverage.
  • 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

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.

  • 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.
  • 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

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.

  • 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.
  • 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.

Insurance reality

If you sell physical products, look at commercial general liability and product-liability coverage before you scale.

  • If you sell physical products, look at commercial general liability and product-liability coverage before you scale.
  • 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.
Back to top Next: Ongoing compliance calendar
Stay compliant Ongoing compliance calendar Keep the recurring compliance checks and live-operating routine visible after launch. Everyone 5 groups

Before first sale

  • 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

  • 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

  • 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

  • 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

  • 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.
Back to top Next: Common mistakes
Avoid these Common mistakes These are the repeated beginner errors called out in the research pack. Everyone 8 mistakes

Common Mistakes New Operators Make

  • Assuming Etsy's marketplace tax collection answers every South Carolina retail-license question
  • 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

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.

Back to top Next: Full official source directory
Full appendix Full official source directory Every official source row from the research pack, kept in its full table structure. Everyone 44 rows

Source group

Statewide Start

South Carolina Business One Stop

State start-here page

Form / portal Startup guidance page
Fee None for the page
Timing First planning step
Who needs it Everyone

Official startup hub that routes founders into structure, licensing, tax, and employer branches.

Open official link

South Carolina Business One Stop

State registration and compliance hub

Form / portal Registration guidance hub
Fee None for the page
Timing Before formation and tax registration
Who needs it Everyone

Official state compliance portal that routes founders to Secretary of State, tax, and EIN steps.

Open official link

South Carolina Business One Stop

State local-license warning

Form / portal Local-license guidance page
Fee None for the page
Timing Early planning step
Who needs it Everyone

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.

Open official link

Source group

Entity Choice and Formation

South Carolina Business One Stop

Compare business types

Form / portal Guidance page
Fee None for the page
Timing First decision
Who needs it Everyone

Official startup guidance says sole proprietors and general partnerships do not register with the South Carolina Secretary of State.

Open official link

South Carolina Secretary of State

Formation hub

Form / portal Online filing system
Fee Varies by filing
Timing Before launch
Who needs it Filing entities

Official South Carolina business-filings system for searching names, filing entities, and retrieving documents.

Open official link

South Carolina Secretary of State

Business name search

Form / portal Name search tool
Fee None for the search
Timing Before formation
Who needs it Filing entities

Official business-name search tool for checking name availability.

Open official link

South Carolina Secretary of State

Default entity formation filing

Form / portal Articles of Organization F0006
Fee $110.00 paper filing fee
Timing At formation
Who needs it single-member LLC founders

Official downloadable form for a domestic LLC.

Open official link

South Carolina Secretary of State filing system

Reviewed online filing fee example

Form / portal Online filing receipt
Fee Articles of Organization $110.00; SC.GOV service fee $15.00
Timing At online filing
Who needs it single-member LLC founders using online filing

Reviewed online example showed the base filing fee plus a separate service fee in the live system.

Open official link

South Carolina Department of Revenue

Ongoing entity maintenance

Form / portal CL-1 only if the LLC is taxed as a corporation
Fee $25 only for the CL-1 corporate branch
Timing Before first anniversary and later cycles
Who needs it single-member LLC founders

South Carolina says an LLC not taxed as a corporation is not subject to the corporate annual report and license fee.

Open official link

Source group

Sole Proprietor and Local Name Filings

South Carolina Business One Stop

Sole proprietor baseline

Form / portal Guidance page
Fee None for the page
Timing First decision
Who needs it Sole proprietors

Official guidance says sole proprietors are not required to register with the South Carolina Secretary of State.

Open official link

South Carolina Business One Stop

DBA or assumed-name warning

Form / portal FAQ page
Fee None for the page
Timing Before using a business name
Who needs it Founders using a name different from their personal or entity name

South Carolina says it does not register DBA names at the state level.

Open official link

South Carolina Business One Stop

Local business-license branch

Form / portal Local city or county business-license process
Fee Varies
Timing Before local operations
Who needs it Founders using local addresses

South Carolina says business licenses are typically issued by the county or municipality and that a business typically needs both the local business license and the South Carolina retail license where the local jurisdiction requires licensing.

Open official link

Source group

Federal and State Tax Setup

IRS

EIN overview and online application

Form / portal EIN online application
Fee Free
Timing Early in setup
Who needs it LLCs, employers, founders who want an EIN

IRS says you can get an EIN directly from the IRS for free.

Open official link

IRS

EIN paper form

Form / portal Form SS-4
Fee Free
Timing If not applying online
Who needs it Founders using mail or fax

IRS reference page for the current SS-4 form and instructions.

Open official link

South Carolina Department of Revenue

State tax registration

Form / portal MyDORWAY Business Tax Application
Fee Varies by account
Timing Before tax registration
Who needs it Businesses needing South Carolina tax accounts

South Carolina says the MyDORWAY business tax application is the online application for retail licenses and other state tax accounts.

Open official link

South Carolina Department of Revenue

Retail license page

Form / portal Retail License through MyDORWAY
Fee $50 non-refundable fee
Timing Before direct taxable retail sales
Who needs it Businesses that are retailers in South Carolina

South Carolina says the retail license does not expire, must be updated if the business location changes, and is not the same as a local business license.

Open official link

South Carolina Department of Revenue

Marketplace or platform tax rule

Form / portal Guidance page
Fee None for the page
Timing Before and after launch
Who needs it Marketplace sellers and multichannel sellers

Official guidance says a marketplace-only third-party seller does not need its own retail license for those marketplace sales, but a seller with direct sales still does.

Open official link

South Carolina Department of Revenue

Resale or exemption certificate

Form / portal ST-8A Resale Certificate
Fee None for the form itself
Timing After licensing if applicable
Who needs it Sellers buying inventory for resale

South Carolina identifies ST-8A for licensed retail merchants buying tangible personal property for resale, lease, or rental.

Open official link

South Carolina Department of Revenue

Business personal property tax

Form / portal MyDORWAY or PT-100
Fee Tax varies; no flat filing fee stated on reviewed page
Timing Four months after accounting closing period; county tax bill due by following January 15
Who needs it Businesses with business personal property

South Carolina says all businesses are required to file BPP returns and that the filing route depends on classification and, in some cases, county agreements.

Open official link

Source group

Entity Tax Maintenance

South Carolina Department of Revenue

Business tax account maintenance

Form / portal MyDORWAY updates and account maintenance
Fee None for the page
Timing When business details change
Who needs it Businesses with South Carolina tax accounts

South Carolina says MyDORWAY can be used to update addresses, business names, and close business tax accounts.

Open official link

South Carolina Department of Revenue

Recurring entity filing or fee

Form / portal Corporate annual report and license-fee branch only if taxed as a corporation
Fee Minimum corporate license fee $25 in the corporate branch
Timing Annual in the corporate branch
Who needs it LLCs taxed as corporations; corporations

South Carolina says an LLC not taxed as a corporation is not subject to the corporate annual report or license fee, but an LLC taxed as a corporation enters that branch.

Open official link

Source group

Federal Reporting

FinCEN

BOI or other federal reporting status

Form / portal BOI guidance page
Fee None
Timing Check before filing
Who needs it Everyone forming an entity

As of April 28, 2026, FinCEN says all entities created in the United States are exempt from BOI reporting under the March 26, 2025 interim final rule.

Open official link

Source group

Employees, Payroll, and Insurance

South Carolina Business One Stop

Employer startup checklist

Form / portal Employer compliance checklist
Fee None for the page
Timing When first becoming an employer
Who needs it Businesses hiring employees

South Carolina compiles I-9, E-Verify, new-hire, withholding, unemployment, workers' compensation, and poster requirements in one page.

Open official link

South Carolina Business One Stop

State withholding

Form / portal Withholding account through MyDORWAY
Fee None stated on reviewed pages
Timing At hiring
Who needs it Employers with South Carolina wages

South Carolina says employers with employees earning wages in the state must register for withholding and upload W-2s and 1099s by January 31.

Open official link

South Carolina Department of Employment and Workforce

UI liability and reports

Form / portal SUITS; UCE 151; related UI forms
Fee Premium-based
Timing Quarterly after liability
Who needs it Businesses liable for UI

South Carolina DEW says for-profit businesses are liable if they pay $1,500 in a quarter or have at least one employee during any 20 weeks, among other triggers, and says quarterly wage reports are required.

Open official link

South Carolina Workers' Compensation Commission

Workers' compensation

Form / portal Coverage through insurer or approved self-insurance path
Fee Premium-based or varies
Timing Before or at hiring
Who needs it Employers

South Carolina says businesses that regularly employ four or more employees generally must maintain coverage, subject to stated exceptions.

Open official link

South Carolina Department of Labor, Licensing and Regulation

Wage and leave baseline

Form / portal FAQ page
Fee None for the page
Timing Ongoing at hiring and employment
Who needs it Employers

South Carolina says state law does not require employers to provide paid vacation or sick time, but employers that offer such benefits must follow their policies.

Open official link

Source group

Platform Setup

Etsy Help

Open a shop

Form / portal Etsy shop signup flow
Fee One-time setup fee may apply
Timing Before launch
Who needs it All Etsy operators

Etsy says you must choose payment methods and set up billing before publishing the shop.

Open official link

Etsy Help

Etsy Payments

Form / portal Etsy Payments onboarding
Fee Processing fees vary by country
Timing During shop setup
Who needs it All sellers in supported countries

Says U.S. bank accounts verify through Plaid and sellers choose Individual or Business for legal and tax purposes.

Open official link

Etsy Help

Identity verification

Form / portal Persona identity-verification flow
Fee None for the page
Timing During onboarding
Who needs it Sellers asked to verify identity

Etsy says identity verification uses a government-issued ID and selfie, and repeated failed attempts can block onboarding.

Open official link

Etsy Help

Bank verification

Form / portal Plaid or manual bank verification
Fee None for the page
Timing Before opening and after bank changes
Who needs it U.S. sellers using Etsy Payments

Etsy says new U.S. sellers must verify the bank account before opening the shop, and existing sellers can be suspended if a changed bank account is not verified in time.

Open official link

Etsy Help

Seller-info confirmation

Form / portal Seller info confirmation flow
Fee None for the page
Timing During onboarding or later legal review
Who needs it Sellers asked for additional verification

Says missed deadlines can stop payouts and place the shop on pause via Etsy-initiated vacation mode.

Open official link

Etsy Help

Allowed-item policy

Form / portal Allowed-item guidance
Fee None for the page
Timing Before sourcing and before launch
Who needs it All Etsy operators

Core public rule for handmade, designed, vintage, craft supplies, and prohibited items.

Open official link

Etsy Help

Production partners

Form / portal Production-partner setup
Fee None for the page
Timing During listing setup if applicable
Who needs it Sellers using production assistance

Says production partners must be disclosed and must produce items based on the seller's original designs.

Open official link

Source group

Pricing, Taxes, and Financial Operations on Etsy

Etsy Help

Etsy fees and taxes overview

Form / portal Fee schedule overview
Fee Varies
Timing Before pricing and during operations
Who needs it All Etsy operators

Public fee page lists setup-fee, listing-fee, transaction-fee, Offsite Ads, and Etsy Payments branches.

Open official link

Etsy Help

Payment-processing-fee table

Form / portal Country fee table
Fee United States currently listed at 3% + $0.25 USD
Timing Before pricing and during operations
Who needs it Sellers using Etsy Payments

Official Etsy help page with country-by-country payment-processing-fee table.

Open official link

Etsy Help

Offsite Ads

Form / portal Offsite Ads guidance
Fee 15% below the public threshold, 12% at or above it, capped at $100 per order
Timing Before pricing and during operations
Who needs it Physical-goods sellers and others using Etsy storefronts

Public help also says all sellers are automatically enrolled, with opt-out rules depending on revenue.

Open official link

Etsy Help

U.S. state sales tax on Etsy orders

Form / portal U.S. state sales-tax help
Fee Collected from buyers where law requires
Timing During operations
Who needs it Sellers shipping to U.S. buyers

Etsy says it automatically calculates, collects, and remits U.S. state sales tax where marketplace-facilitator laws require it.

Open official link

Etsy Help

Payment-account reserve

Form / portal Reserve guidance
Fee Varies by reserve percentage and holding period
Timing Re-check if payouts tighten
Who needs it Sellers of physical goods

Public help says valid tracking can release reserved funds early and that first-sale, refund, tracking, and shipping-timing risk factors matter.

Open official link

Source group

Insurance Checkpoint

Etsy Help / Etsy legal policy

Platform protection and shipping-risk checkpoint

Form / portal Etsy Purchase Protection
Fee None for the program
Timing Before scaling physical-product sales
Who needs it Etsy operators selling physical goods

Public Etsy help says qualifying orders up to $250 may be refunded by Etsy instead of the seller. The help page also says updates begin on May 7, 2026, and public Etsy materials do not identify a universal seller liability-insurance threshold for standard shops.

Open official link

Etsy Help

Shipping-label insurance and claims

Form / portal Shipping-label coverage and claims guidance
Fee Varies by carrier and coverage level
Timing When buying labels
Who needs it Physical-product sellers using Etsy labels

Carrier coverage and claim paths vary. This is shipment-level protection, not business liability coverage.

Open official link

Source group

Charleston Branch

City of Charleston

City business-license and CO split

Form / portal City business license through CSS; separate Certificate of Occupancy process for physical commercial locations
Fee Annual fee based on gross income and rate class; no flat starter fee stated on reviewed page
Timing Before operating in the city; renew annually
Who needs it Charleston businesses and businesses generating income in the city

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.

Open official link

City of Charleston

Home occupation branch

Form / portal Home Occupation Application and business license
Fee Varies
Timing Before operating from a home in the city
Who needs it Charleston home-based businesses

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.

Open official link

City of Charleston

Business-license renewal dates

Form / portal Renewal through CSS, in person, mail, or approved alternative methods
Fee Renewal fee varies by gross income and rate class
Timing Annual
Who needs it Charleston businesses holding licenses

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.

Open official link
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