LaunchPath

Flagship channel-state reference guide

Start Etsy in Utah: 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 Utah, IRS, FinCEN, Salt Lake City, 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 Utah, you usually need to do five things in order: Everyone 5 steps

If you want to open Etsy in Utah, 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. Get your federal and Utah registrations in place before launch, especially your EIN and your Utah tax / resale answer if you will make any direct sales.
  3. Verify local city or county permit, zoning, and home-business rules, with a separate branch for Salt Lake City.
  4. Open and verify your Etsy shop, billing setup, and Etsy Payments account.
  5. Launch only after your listing, shipping, pricing, reserve-risk, and compliance 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 in Utah.

Avoid these first-launch mistakes

  • Treating Etsy's marketplace collection as a universal no-registration answer.
  • Promising a Utah resale certificate before solving the TC-721 and sales-tax-license branch.
  • Flattening Salt Lake City rules into statewide Utah law.

Utah-specific friction

Utah's public record is still not fully harmonized for marketplace-only sellers. Pub 71, the sales-tax FAQ, the non-nexus page, and Publication 25 do not produce one perfect answer for every Utah-based Etsy-only fact pattern.

  • Utah's public record is still not fully harmonized for marketplace-only sellers. Pub 71, the sales-tax FAQ, the non-nexus page, and Publication 25 do not produce one perfect answer for every Utah-based Etsy-only fact pattern.
  • The Utah resale branch is not a clean marketplace-only shortcut. Current Form TC-721 still expects a sales tax license number for the starred Resale or Re-lease line, so buying for resale or exemption can reopen the registration question even when Etsy collects on customer orders.
  • Utah pushes local licensing down to municipalities and counties in unincorporated areas. A founder can be fully formed with the state and still be blocked locally by zoning, delivery-traffic, storage, occupancy, or home-business rules.
  • Salt Lake City adds a real local branch for licensing, neighborhood-impact analysis, zoning review, and fee differences.

Etsy-specific friction

Etsy can require a one-time, non-refundable set-up fee before the shop goes live, and as of April 28, 2026 the public fee pages still say the amount varies by location.

  • Etsy can require a one-time, non-refundable set-up fee before the shop goes live, and as of April 28, 2026 the public fee pages still say the amount varies by location.
  • The fee stack is broader than just listing fees because transaction fees, payment-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 earlier release to valid in-transit tracking while still keeping reserve timing and percentages account-specific.
  • Missed seller-info confirmation deadlines can stop payouts and pause the shop.
  • Etsy's public Purchase Protection help says qualifying orders up to $250 may be covered, but the help page itself announces updates beginning May 7, 2026, so treat the details as time-sensitive and re-check on the exact launch date.

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-wide seller-insurance threshold was verified in the reviewed public sources for this Utah packet.
  • Etsy's public Purchase Protection materials are not insurance, and shipping-label insurance is shipment-specific, not business-wide protection.
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 and decide whether you need a Utah DBA.
  • Decide your Etsy lane inside handmade, original-design with disclosed production partner, qualifying vintage, or qualifying craft and party 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-specific research.
  • Confirm the offer is not blocked by Utah law, local rules, Etsy policy, or Etsy's allowed-item rules.
  • Make sure you can document design ownership, supplier legitimacy, vintage status, or production-partner use where relevant.

Do these before your first sale

  • Form the business or file the Utah DBA branch if needed.
  • Get an EIN from the IRS if applicable.
  • Open a dedicated business bank account.
  • Resolve the Utah marketplace-facilitator, TAP / TC-69, and TC-721 resale branches before buying inventory or promising suppliers a resale certificate.
  • Check local permits and home-business rules, including the Salt Lake City branch if the business operates there.
  • Create your Etsy seller account and complete identity, bank, and seller-info verification steps.

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 Utah / local launch model.
  • Price with the full Etsy fee stack, including the location-variable set-up-fee branch, payment processing, and Offsite Ads.
  • Keep reserve, seller-info, and Purchase Protection caveats visible in your cash-flow planning.
  • Build the first listings carefully and launch 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

  • Utah does not require a separate state entity-formation filing just to exist as a sole proprietor using your true legal name.
  • If you want to use a different public-facing name, Utah uses a statewide DBA / assumed-name filing through the Division of Corporations and Commercial Code. The public DBA form reviewed on April 28, 2026 shows a USD 22 new filing fee and says the registration runs for 3 years when approved.
  • Business income generally runs through your personal return unless you later change tax treatment.
  • You 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

  • File a Utah Certificate of Organization with the Division of Corporations and Commercial Code. The current public filing fee is USD 59.
  • Keep a Utah registered agent with a Utah street address, keep the operating agreement internally, and calendar the annual renewal immediately.
  • Utah's current fee schedule reviewed on April 28, 2026 shows the LLC renewal fee at USD 18, with a USD 10 late renewal fee.
  • If your public shop or brand name differs from the legal LLC name, the Utah DBA branch stays separate.

Why someone chooses it

  • Liability protection
  • Cleaner setup for banking, vendors, bookkeeping, insurance, and scaling
  • Better fit for brand-building, inventory, and later hiring

Main downside: More setup friction and recurring maintenance than a sole proprietorship

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 product touches health, safety, children, ingestibles, dangerous goods, alcohol, or obvious intellectual-property risk, slow down and do category-specific compliance research before buying inventory or publishing a listing.

    • 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 the 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 Utah DBA,
    • selling your own handmade items,
    • selling your own original designs with or without a production partner,
    • selling qualifying vintage,
    • selling qualifying craft supplies,
    • or building a long-term brand that may outgrow the first shop.
    • Etsy shop names do not replace the legal entity name or tax records behind the business.
    • Utah's DBA filing does not replace city or county licensing.
    • 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: If you use your true legal name and stay out of local-license trouble, no Utah state entity-creation filing was verified for the sole proprietorship itself.

    • If you choose sole proprietor: If you use your true legal name and stay out of local-license trouble, no Utah state entity-creation filing was verified for the sole proprietorship itself.
    • If you choose sole proprietor: If you use a different public-facing name, file the Utah DBA / assumed-name registration before using that name with banks, suppliers, or Etsy records.
    • If you choose sole proprietor: Keep the local branch separate. A Utah DBA does not replace city licensing, zoning, or home-occupation review.
    • If you choose single-member LLC: Do this in order:
    • If you choose single-member LLC: Search name availability and decide whether you also need a separate public-facing DBA.
    • If you choose single-member LLC: File the Utah Certificate of Organization and list the registered agent with a Utah street address.
    • If you choose single-member LLC: Adopt the operating agreement internally, get the EIN, and calendar the annual renewal immediately.
    • If you choose single-member LLC: If the public brand differs from the legal LLC name, file the separate Utah DBA / assumed-name registration.

  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 optional, 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 receipt, invoice, Etsy fee statement, shipping bill, and tax record.
    • Keep a sourcing folder, listing-support folder, and tax folder from day one.
    • Track reserve holds, refunds, and ad charges separately so payout timing problems do not surprise you.

  6. Step 6: Register for state tax, seller permit, or resale setup

    Main guide step 6

    Use TAP and choose Apply for tax account(s) - TC-69 when you need a Utah sales-tax account.

    • Use TAP and choose Apply for tax account(s) - TC-69 when you need a Utah sales-tax account.
    • Utah's public sales-tax record reviewed on April 28, 2026 is not fully harmonized for marketplace-only sellers. Pub 71 says marketplace sellers do not need a Utah sales tax license for facilitated sales unless they have Utah nexus and make sales outside a marketplace.
    • Utah's current non-nexus page says nexus turns on more than $100,000 of Utah sales and says the 200-transaction test applied only before July 1, 2025.
    • But the Utah sales-tax FAQ reviewed on the same date still lists gross revenue of more than $100,000 or 200 or more separate transactions, and Publication 25 still says every seller with an established Utah presence must have a Utah sales tax license.
    • Safe takeaway for this packet: if you are a Utah-based Etsy-only seller, confirm the registration posture directly with the Utah State Tax Commission before assuming you can stay unregistered.
    • If you will make any direct website sales, in-person sales, wholesale sales, custom invoice sales, or any other non-Etsy Utah sales, use the TC-69 path before launch unless the Tax Commission tells you otherwise.
    • If you need Utah resale treatment, use Form TC-721 only after your Utah sales-tax-license posture is settled. The current TC-721 requires a sales tax license number for starred exemptions, and Resale or Re-lease is one of those starred lines.
    • Etsy's public U.S. sales-tax help also says Etsy automatically calculates, collects, and remits state sales tax on Etsy orders where marketplace-facilitator laws require it, but that platform-side answer still does not erase Utah's separate registration, resale, or direct-sales analysis outside the exact facilitated-order context.

  7. Step 7: Check business-license, local permit, and home-business rules

    Main guide step 7

    Utah does not use one statewide local-business form for every Etsy seller.

    Why it matters: Do this before operating: Statewide practical rule: Utah's business-licensing guide says businesses should license with the local municipality where they are doing business and that counties govern unincorporated areas. That local-license branch is separate from your state entity filing and separate from Etsy's shop-opening workflow. Typical local risk areas: Salt Lake City branch: If the business operates in Salt Lake City, add one more review layer: Safe takeaway: Treat Salt Lake City as an address-specific branch, not a statewide rule. Inventory storage, prep work, routine carrier activity, signage, and neighborhood impact can all change the answer.

    • check Utah's government-requirements page and business-licensing guide,
    • contact the city or town where the business will operate,
    • contact the county branch if the address is in an unincorporated area,
    • and ask zoning, planning, building, or fire staff about home occupation, stored inventory, regular carrier pickups, signage, and customer visits.
    • home occupation restrictions
    • inventory or supply storage at home
    • recurring UPS, FedEx, or USPS pickups and deliveries
    • customer pickups or visits
    • zoning, parking, occupancy, and fire-code limits
    • Salt Lake City's public business-licensing page says businesses engaging in business within city limits generally need a valid, unexpired business license, and all commercial business licenses must pass zoning, building, and fire review.
    • Salt Lake City's public application page adds an important home-business qualifier: the city says, under state statute, it does not require a business license if the business operates from home unless the business causes an impact to the neighborhood. The same page tells operators to contact Business Licensing to decide whether the home-business branch applies.
    • Salt Lake City's public zoning page says founders can use the city's online zoning map to find the zoning for any property in the city, use the land-use tables in Chapter 21A.33, and use the Citizens Access Portal to research property information before relying on a local answer.
    • Salt Lake City's Starting a Project page says the Planning Counter / One-Stop Shop is the first contact for project questions and points founders back to the zoning resources before starting a project.
    • If you need a home-business license, the city says to apply online and upload the Home Occupation form during the application.
    • Salt Lake City's FY2026 fee schedule amended on January 29, 2026 shows a home-occupation business-license fee of $153, a commercial business-license fee of $193, and an employee fee of $28 annually per full-time or part-time employee if the business has more than one employee. The city also says additional fees may apply depending on business type.
    • Use a simple proof flow for the exact address: first run the address through the city's zoning lookup map and save the zoning / parcel result, then use the zoning page, land-use tables, and Citizens Access Portal to see whether the property's current status changes the answer, then ask Business Licensing whether the actual Etsy activity fits the home-business / neighborhood-impact exception, and finally use the city's online application plus Home Occupation upload or escalate to the commercial license plus zoning / building / fire review if the address facts outgrow that home-business path.

  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 the employer through Utah's unemployment-insurance portal and complete any withholding or other tax-account setup through TC-69 / TAP if you do not already have those accounts.
    • Utah Labor Commission guidance reviewed on April 28, 2026 says that, with a few exceptions, every employer must provide workers' compensation coverage for all employees.
    • This packet did not verify a general Utah private-employer disability-insurance or paid-family-leave registration program on the official employer pages reviewed on April 28, 2026.
    • Utah does have workers' compensation waiver and verification tools for narrow fact patterns, but this packet did not verify a broad CE-200-style exemption certificate that ordinary small employers can rely on instead of the normal coverage analysis.

  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's public shop-opening guide says it does not require a business license just to sell on Etsy.
    • Etsy also says sellers must follow the laws that apply to them as small businesses selling online.
    • That means Utah and Salt Lake City compliance does not disappear just because Etsy onboarding lets you continue.
    • Etsy's seller-info confirmation page says missed legal deadlines can affect payouts and can place a shop into Etsy-initiated vacation mode until the required information is confirmed.
    • Start at Etsy's public shop-opening guide and open the shop from Etsy.com/sell.
    • Set up the shop in a desktop web browser, choose your shop language, country, currency, and a compliant shop name.
    • Turn on required two-factor authentication.
    • Connect your bank account, add your billing card, and enroll in Etsy Payments. Etsy's seller-verification page says sellers choose whether to onboard as an individual / sole proprietorship or as a business.
    • If your bank account is in the United States, verify it through Plaid or through Etsy's manual test-deposit fallback if Etsy sends you down that path.
    • Complete identity verification through Persona, and be ready to upload ID or business documents that match the legal record if Etsy cannot verify automatically.
    • 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 set-up-fee possibility, listing fees, transaction fees, payment-processing fees, shipping, packaging, refund risk, and any advertising charges you choose to use.

    • As of April 28, 2026, Etsy's public fee pages say a one-time, non-refundable shop set-up fee may apply and that the amount varies by location. Re-check the live onboarding flow on the exact launch date because this is not one universal published U.S. price.
    • 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 the 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. Shops above the public threshold are required to participate for the life of the shop.
    • Etsy Plus is optional at $10 per month and is not required for a normal Utah launch.

  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 paperwork before demand is proven.

    • Etsy does not have an Amazon-style mandatory brand-registry program for normal sellers.
    • What matters first is whether the item fits Etsy's allowed categories, whether you own the rights to the design or branding you are using, and whether any production partner needs to be disclosed.
    • 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.

  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: Operational detail that matters:

    • create the first listing in Shop Manager,
    • finish storefront basics such as the banner, icon, About section, and policy-facing profile fields,
    • choose the right category and item type,
    • upload your own product photos and any needed video,
    • 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.
    • Etsy says sellers outside the EU must set a return policy whenever they create or edit a physical-item listing, even if the policy says no returns or exchanges are accepted.
    • Etsy's shipping help says sellers remain responsible for ensuring orders are sent to buyers even when third-party services help with fulfillment.
    • Etsy shipping labels are optional. Use them if they help your workflow, not because they replace your shipping responsibility.
    • Use tracked shipping on early physical orders whenever possible because Etsy's reserve guidance ties earlier fund release to valid in-transit tracking and Purchase Protection still depends on accurate order processing and shipping.

  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.
    • Etsy's current drop-shipping / reselling guidance says drop shipping is generally not allowed except for a limited craft-and-party-supplies exception.
    • Prohibited items include alcohol, many dangerous items, illegal items, and other restricted categories listed in Etsy's policy.

  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 lane first and decide whether you will stay marketplace-only or also make direct or wholesale sales.
  2. Choose the legal entity name and decide whether you also need a separate public-facing DBA.
  3. File the Utah LLC.
  4. Get the EIN.
  5. Open the bank account.
  6. Resolve the Utah tax branch before inventory purchases because marketplace-only facilitated sales, direct sales, and TC-721 resale needs do not lead to the same answer.
  7. Put the Utah anniversary renewal on the calendar immediately, and add the DBA three-year renewal if you filed one.
  8. Check city and county local-license, zoning, and home-business rules before storing or prepping inventory at the address.
  9. If operating in Salt Lake City, run the address through the city's zoning map, use the zoning and Citizens Access Portal research path for the property, then verify the home-business or neighborhood-impact branch directly with Business Licensing before relying on the address.
  10. Build the Etsy seller account and complete identity, bank, and billing verification.
  11. Finish the listing, shipping, return-policy, and storefront setup.
  12. If you hire, complete the employer, unemployment, and workers' compensation branch before or at first payroll.
  13. Track the recurring Utah, local, and Etsy compliance items on the calendar from day one.
Back to top Next: Utah tax stack
State filing and tax Utah tax stack Keep the Utah registration, tax, and maintenance rules together while you launch. Everyone 7 checks

1. EIN

A single-member LLC, an employer, or a founder who wants clean banking and vendor separation should get an EIN.

  • A single-member LLC, an employer, or a founder who wants clean banking and vendor separation should get an EIN.
  • A sole proprietor may not always need one federally, but it is usually the cleaner operational choice for Etsy and resale paperwork.

2. Utah sales tax, seller permit, or equivalent registration

Use Taxpayer Access Point (TAP) and choose Apply for tax account(s) - TC-69 when you need a Utah sales-tax account.

  • Use Taxpayer Access Point (TAP) and choose Apply for tax account(s) - TC-69 when you need a Utah sales-tax account.
  • Register before direct taxable Utah sales begin or before you need a Utah sales-tax account for a resale or other tax-account reason.
  • Utah's public pages say new businesses estimate their sales-tax liability at registration and are assigned a filing frequency.

3. Marketplace or platform tax rule

Pub 71 says marketplace sellers do not need a Utah sales tax license for facilitated sales unless they have Utah nexus and make sales outside a marketplace.

  • Pub 71 says marketplace sellers do not need a Utah sales tax license for facilitated sales unless they have Utah nexus and make sales outside a marketplace.
  • Utah's non-nexus page reviewed on April 28, 2026 says nexus now turns on more than $100,000 of Utah sales and says the 200-transaction test applied only before July 1, 2025.
  • But the Utah sales-tax FAQ reviewed on the same date still lists gross revenue of more than $100,000 or 200 or more separate transactions.
  • Treat the newer non-nexus page and Pub 71 as the stronger public signals, but re-check on the action date because the public record is not fully harmonized.
  • Safe takeaway: a pure Etsy-only Utah seller should not treat marketplace-facilitator collection as a universal no-registration answer without confirming the posture directly with the Tax Commission.

4. Resale purchases or exempt purchasing

Utah uses Form TC-721 or the equivalent electronic exemption information.

  • Utah uses Form TC-721 or the equivalent electronic exemption information.
  • The current TC-721 requires a sales tax license number for starred exemptions, and the Resale or Re-lease line is one of the starred exemptions.
  • If you want resale treatment for inventory purchases, resolve your Utah sales-tax-license posture before promising a supplier that you have a valid Utah resale certificate.
  • If you are making handmade items and mainly buying raw materials instead of finished resale inventory, keep the documentation analysis separate from the classic reseller path. This packet still preserves the public-record caveat instead of flattening that distinction.

5. Entity tax treatment

Utah generally follows the federal classification baseline for a standard single-member LLC, so income usually flows through unless you elect a different federal classification.

  • Utah generally follows the federal classification baseline for a standard single-member LLC, so income usually flows through unless you elect a different federal classification.
  • Utah still separates the legal formation filing from the tax-account branch, so sales tax, employer taxes, and local licensing remain separate setups.

6. Entity filing-fee or franchise-tax rule

This packet did not verify a separate Utah LLC franchise tax on the public state pages reviewed on April 28, 2026.

  • This packet did not verify a separate Utah LLC franchise tax on the public state pages reviewed on April 28, 2026.
  • The recurring public state entity fee verified here is the annual LLC renewal at USD 18, due one year from registration and annually after that, plus the USD 10 late fee if missed.
  • The current public assumed-name renewal fee is USD 18 on the 3-year cycle.

7. If the founder changes entity type later

If the ownership, business name, or business location changes, Utah's sales-tax FAQ points businesses to TC-69C.

  • If the ownership, business name, or business location changes, Utah's sales-tax FAQ points businesses to TC-69C.
  • If you convert from sole proprietor to LLC or otherwise take a new FEIN, do not assume the old tax-account, local-license, bank-verification, or Etsy-verification posture carries over automatically.
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's public shop-opening guide says it does not require a business license just to sell on Etsy.
    • Etsy also says sellers must follow the laws that apply to them as small businesses selling online.
    • That means Utah and Salt Lake City compliance does not disappear just because Etsy onboarding lets you continue.
    • Etsy's seller-info confirmation page says missed legal deadlines can affect payouts and can place a shop into Etsy-initiated vacation mode until the required information is confirmed.
    • Start at Etsy's public shop-opening guide and open the shop from Etsy.com/sell.
    • Set up the shop in a desktop web browser, choose your shop language, country, currency, and a compliant shop name.
    • Turn on required two-factor authentication.
    • Connect your bank account, add your billing card, and enroll in Etsy Payments. Etsy's seller-verification page says sellers choose whether to onboard as an individual / sole proprietorship or as a business.
    • If your bank account is in the United States, verify it through Plaid or through Etsy's manual test-deposit fallback if Etsy sends you down that path.
    • Complete identity verification through Persona, and be ready to upload ID or business documents that match the legal record if Etsy cannot verify automatically.
    • 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 set-up-fee possibility, listing fees, transaction fees, payment-processing fees, shipping, packaging, refund risk, and any advertising charges you choose to use.

    • As of April 28, 2026, Etsy's public fee pages say a one-time, non-refundable shop set-up fee may apply and that the amount varies by location. Re-check the live onboarding flow on the exact launch date because this is not one universal published U.S. price.
    • 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 the 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. Shops above the public threshold are required to participate for the life of the shop.
    • Etsy Plus is optional at $10 per month and is not required for a normal Utah launch.

  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 paperwork before demand is proven.

    • Etsy does not have an Amazon-style mandatory brand-registry program for normal sellers.
    • What matters first is whether the item fits Etsy's allowed categories, whether you own the rights to the design or branding you are using, and whether any production partner needs to be disclosed.
    • 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.

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

    Platform step 4

    Use the Etsy-specific version of this section:

    Why it matters: Operational detail that matters:

    • create the first listing in Shop Manager,
    • finish storefront basics such as the banner, icon, About section, and policy-facing profile fields,
    • choose the right category and item type,
    • upload your own product photos and any needed video,
    • 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.
    • Etsy says sellers outside the EU must set a return policy whenever they create or edit a physical-item listing, even if the policy says no returns or exchanges are accepted.
    • Etsy's shipping help says sellers remain responsible for ensuring orders are sent to buyers even when third-party services help with fulfillment.
    • Etsy shipping labels are optional. Use them if they help your workflow, not because they replace your shipping responsibility.
    • Use tracked shipping on early physical orders whenever possible because Etsy's reserve guidance ties earlier fund release to valid in-transit tracking and Purchase Protection still depends on accurate order processing and shipping.

  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.
    • Etsy's current drop-shipping / reselling guidance says drop shipping is generally not allowed except for a limited craft-and-party-supplies exception.
    • Prohibited items include alcohol, many dangerous items, illegal items, and other restricted categories listed in Etsy's policy.
Back to top Next: Local permits and Salt Lake City branch
Local branch Local permits and Salt Lake City 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

Utah pushes several operating questions down to municipalities and counties.

  • Utah pushes several operating questions down to municipalities and counties.
  • For any place where the Etsy business will operate:
  • start with Utah's business-licensing guide and Utah.gov government-requirements page,
  • check the city business-license office where the business will operate,
  • check the county branch if the address is in an unincorporated area,
  • and ask zoning, planning, building, or fire staff if the business will operate from home, store inventory, or receive recurring commercial deliveries.
  • If the address is in Salt Lake City, use the city's zoning map and planning pages to identify the zoning district, parcel, and permit-research path before assuming the home-business exception applies.
  • Statewide practical rule:
  • Utah's business-licensing guide says all businesses should license with the local municipality where they are doing business, counties have jurisdiction over businesses in unincorporated areas, and in most cases a business license is required in each city or county where the business operates.
  • That local-license branch is separate from the Utah state DBA or entity filing branch.
  • A Utah founder can be fully formed with the state and still be blocked locally by zoning, occupancy, delivery-traffic, storage, signage, or home-occupation rules.
  • Typical local risk areas:
  • local business-license requirements
  • home occupation restrictions
  • inventory or supply storage
  • recurring carrier activity at a residence
  • fire-code or occupancy limits
  • customer visits or pickup

Salt Lake City Appendix

Salt Lake City's public business-licensing page says that if you engage in business, either permanently or temporarily, within the corporate limits of Salt Lake City, you are generally required to maintain a valid, unexpired business license. The same page says all commercial business licenses must be reviewed for zoning and building compliance and fire safety code.

  • Salt Lake City's public business-licensing page says that if you engage in business, either permanently or temporarily, within the corporate limits of Salt Lake City, you are generally required to maintain a valid, unexpired business license. The same page says all commercial business licenses must be reviewed for zoning and building compliance and fire safety code.
  • But Salt Lake City's public application-process page adds an important home-business qualifier: under state statute, the city does not require a business license if you are operating from home unless the business causes an impact to the neighborhood. The same page tells operators to contact Business Licensing to determine whether the home-business branch applies.
  • Salt Lake City's public zoning page says founders can use the online zoning map to find the zoning of any property in the city, use the land-use tables in Chapter 21A.33 to see allowed uses, and use the Citizens Access Portal to research property information.
  • Salt Lake City's Starting a Project page says the Planning Counter / One-Stop Shop is the first contact for project questions and points founders back to the zoning resources before work begins.
  • If you want or need a home-business license in Salt Lake City, the city says to apply online and upload the Home Occupation form during the application.
  • Salt Lake City's FY2026 fee schedule amended on January 29, 2026 shows a home-occupation business-license fee of $153, a commercial business-license fee of $193, and an employee fee of $28 annually per full-time or part-time employee if the business has more than one employee. The same fee schedule says additional fees may apply depending on business type.
  • This is a conditional and address-specific branch, not a statewide certainty. Inventory storage, prep work, routine carrier pickups or drop-offs, signage, and neighborhood impact can all change the city answer, so verify the exact address before launch.
  • Best practical proof flow: run the exact address through the city's zoning lookup map first, keep the zoning and parcel result with the packet, use the zoning page, Chapter 21A.33 land-use tables, and the Citizens Access Portal to research the property's current status, ask Business Licensing about the exact Etsy activity and the home-business / neighborhood-impact exception, then use the online application plus Home Occupation upload or escalate to the commercial licensing plus zoning / building / fire review path if the address facts outgrow the home-business exception.
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 5 branches

1. Employer registration

Utah's unemployment-insurance portal lets an employer create a new UI account for the business, and Utah's TC-69 / TAP path is the tax-registration branch for withholding and related tax accounts.

  • Utah's unemployment-insurance portal lets an employer create a new UI account for the business, and Utah's TC-69 / TAP path is the tax-registration branch for withholding and related tax accounts.
  • The main agencies in this packet are the Utah Department of Workforce Services for UI and the Utah State Tax Commission for state tax accounts.

2. Workers' compensation

Utah Labor Commission guidance reviewed on April 28, 2026 says that, with a few exceptions, every employer must provide workers' compensation coverage for all employees.

  • Utah Labor Commission guidance reviewed on April 28, 2026 says that, with a few exceptions, every employer must provide workers' compensation coverage for all employees.
  • Utah does have workers' compensation waiver and verification tools for narrow fact patterns, but this packet did not verify a broad CE-200-style exemption certificate that ordinary small employers can rely on instead of the normal coverage analysis.

3. Disability, paid leave, or similar coverage

This packet did not verify a general Utah private-employer disability-insurance or paid-family-leave registration program on the official state employer pages reviewed on April 28, 2026.

  • This packet did not verify a general Utah private-employer disability-insurance or paid-family-leave registration program on the official state employer pages reviewed on April 28, 2026.
  • This packet did not verify a general Utah private-employer disability-insurance or paid-family-leave registration program on the official employer pages reviewed on April 28, 2026.

4. Exemption certificate if applicable

Utah has workers' compensation coverage-waiver tools for narrow fact patterns, but this packet did not verify a broad CE-200-style exemption certificate that ordinary private employers can rely on instead of the normal coverage analysis.

  • Utah has workers' compensation coverage-waiver tools for narrow fact patterns, but this packet did not verify a broad CE-200-style exemption certificate that ordinary private employers can rely on instead of the normal coverage analysis.

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-wide seller-insurance threshold was verified in the reviewed public sources for this Utah packet.
  • Etsy's public Purchase Protection materials are not insurance, and shipping-label insurance is shipment-specific, not business-wide protection.
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 DBA setup.
  • Get EIN if applicable.
  • Open bank account.
  • Decide whether you will stay Etsy-only or also make direct or wholesale sales, because that choice controls the Utah tax-registration branch.
  • Resolve the TC-721 resale question before buying inventory if you expect supplier exemption paperwork.
  • Put the Utah anniversary renewal date on the calendar immediately. If you file a DBA, also calendar its three-year renewal.
  • Check local permits and home-business rules.
  • 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.
  • Re-check the exact address if inventory will be stored, prepped, or shipped from home.
  • Re-check the live Etsy fee pages if a launch decision depends on the current set-up fee, Offsite Ads wording, or Purchase Protection details.

Monthly

  • Reconcile payouts, fees, refunds, and ad charges.
  • Review cash reserves for taxes and refunds.
  • Review margins, shipping performance, and reserve risk.
  • Check Shop Manager for policy or seller-info requests.
  • If Utah assigned a monthly or semimonthly sales-tax filing cadence, file on the TAP schedule instead of waiting for quarter-end.

Quarterly

  • If Utah assigned quarterly sales-tax filing status, the Utah FAQ reviewed on April 28, 2026 shows due dates of April 30, July 31, October 31, and January 31.
  • If you have a Utah employer account, keep filing quarterly wage reports and contributions on the state's required cadence.
  • Review federal estimated-tax exposure if the business is profitable.
  • Re-check whether the shop has grown into a different Offsite Ads posture or a higher reserve-risk posture.

Annual or periodic

  • Renew the Utah LLC one year from the registration date and annually after that. Renew a Utah DBA three years from registration and every three years after that.
  • If the business closes or changes ownership, name, or location, file TC-69C with the Utah State Tax Commission instead of just stopping activity.
  • Renew any local business license that applies. Salt Lake City says local business licenses renew annually.
  • Re-check the exact Etsy help and policy pages before relying on older notes about set-up fees, Offsite Ads, seller-info verification, reserves, or Purchase Protection.
Back to top Next: Common mistakes
Avoid these Common mistakes These are the repeated beginner errors called out in the research pack. Everyone 7 mistakes

Common Mistakes New Operators Make

  • Treating Etsy's marketplace collection as a universal no-registration answer.
  • Promising a Utah resale certificate before solving the TC-721 and sales-tax-license branch.
  • Flattening Salt Lake City rules into statewide Utah law.
  • Treating an Etsy shop name like it automatically solves the legal DBA question.
  • Pricing without the full Etsy fee stack.
  • Ignoring seller-info, reserve, or bank-verification risk.
  • Using print-on-demand or production partners without understanding Etsy's disclosure rules.

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 in Utah.

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 60 rows

Source group

Statewide Start

Utah.gov

State start-here page

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

Statewide start page linking business registration, local licensing, tax registration, unemployment registration, and labor-law resources.

Open official link

Utah Division of Corporations & Commercial Code

State business portal

Form / portal UtahID filing portal
Fee Varies by filing
Timing Before entity or DBA filings
Who needs it Founders creating or renewing Utah entities

Main UtahID-based filing portal for formations, renewals, amendments, and DBA registrations.

Open official link

Utah.gov

State small business support hub

Form / portal State business hub
Fee None for the page
Timing Optional
Who needs it Founders who need state-service routing

Utah's statewide business hub for starting, running, and closing a business.

Open official link

Source group

Entity Choice and Formation

Utah Division of Corporations & Commercial Code

Compare business types

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

Official Utah guide comparing sole proprietorships, LLCs, corporations, and partnerships.

Open official link

Utah Division of Corporations & Commercial Code

Formation hub

Form / portal Formation hub
Fee Varies
Timing Before launch
Who needs it Filing entities

Main Utah entity-formation hub for new businesses and follow-on filings.

Open official link

Utah Division of Corporations & Commercial Code

Default entity formation filing

Form / portal Certificate of Organization guidance
Fee USD 59
Timing At formation
Who needs it single-member LLC founders

Public Utah LLC formation page says LLCs are organized by filing a Certificate of Organization and shows the USD 59 processing fee.

Open official link

Utah Division of Corporations & Commercial Code

Optional name reservation

Form / portal Name reservation fee schedule
Fee USD 22
Timing Optional before formation
Who needs it Founders who want extra time before filing

Utah's current fee schedule lists a name reservation fee of USD 22. Re-check the live Division filing tools on the action date if you need the reservation workflow.

Open official link

Utah Division of Corporations & Commercial Code

Ongoing entity maintenance

Form / portal FY2026 fee schedule
Fee USD 18 for LLC renewal; USD 10 late renewal fee
Timing Annually; DBA renews every 3 years
Who needs it single-member LLC founders

Current fee schedule reviewed on April 28, 2026 shows LLC renewal at USD 18, assumed-name renewal at USD 18, and late renewal at USD 10.

Open official link

Utah Division of Corporations & Commercial Code

Renewal timing guidance

Form / portal Renewal guidance
Fee None for the guidance page
Timing Immediately after formation and then annually
Who needs it single-member LLC founders

Utah says renewals are due one year from registration and annually after that.

Open official link

Source group

Sole Proprietor and Local Name Filings

Utah Division of Corporations & Commercial Code

Sole proprietor baseline

Form / portal DBA guidance
Fee None if operating under true legal name
Timing First setup step
Who needs it Sole proprietors

Utah's DBA page says a sole proprietor is one individual in business alone and explains that the assumed-name branch is separate from simple true-name operation.

Open official link

Utah Division of Corporations & Commercial Code

Utah DBA filing

Form / portal Business Name Registration / DBA Application
Fee USD 22 new filing
Timing When using a public-facing business name
Who needs it Sole proprietors and LLCs using another name

The public form reviewed on April 28, 2026 says the DBA is registered for 3 years when approved.

Open official link

Utah Department of Commerce

Local business-license guide

Form / portal Licensing guide
Fee None for the guide
Timing Before local launch
Who needs it Everyone

Public guide says businesses should license with the local municipality where they are doing business and counties govern unincorporated areas.

Open official link

Utah.gov

Local license links

Form / portal Local Business Licenses links
Fee None for the page
Timing Before local launch
Who needs it Businesses using a home address or local storefront

Utah's statewide government-requirements page routes founders to local licensing resources.

Open official link

Source group

Federal and State Tax Setup

IRS

EIN overview and online application

Form / portal EIN application
Fee Free
Timing Early in setup
Who needs it LLCs, employers, and founders wanting 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 paper, mail, or fax

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

Open official link

Utah State Tax Commission

State tax registration

Form / portal TAP / TC-69
Fee None for the registration itself
Timing Before direct taxable Utah sales or when a Utah tax account is needed
Who needs it Businesses needing Utah tax accounts

Utah's FAQ says to obtain a sales tax number online using TAP and choosing Apply for tax account(s) - TC-69.

Open official link

Utah State Tax Commission

Registration instructions

Form / portal Sales & Use Tax information
Fee None for the page
Timing During registration
Who needs it Utah sellers and taxpayers

Utah says new businesses estimate sales-tax liability when applying for a license and are assigned a filing frequency.

Open official link

Utah State Tax Commission

Marketplace or platform tax rule

Form / portal Pub 71
Fee None for the page
Timing Before and after launch
Who needs it Marketplace sellers and facilitators

Pub 71, reviewed on April 28, 2026, says marketplace sellers do not need a Utah sales tax license for facilitated sales unless they have Utah nexus and make sales outside a marketplace.

Open official link

Utah State Tax Commission

Nexus threshold page

Form / portal Non-Nexus Sellers
Fee None for the page
Timing Before launch
Who needs it Remote or borderline Utah sellers

Reviewed on April 28, 2026, this page says the 200-transaction test applied only before July 1, 2025 and now points to more than $100,000 of Utah sales as the public threshold.

Open official link

Utah State Tax Commission

Resale or exemption certificate

Form / portal Form TC-721
Fee None for the form
Timing After registration if applicable
Who needs it Businesses making qualifying exempt or resale purchases

The current TC-721 requires a sales tax license number for starred exemptions, including Resale or Re-lease.

Open official link

Utah State Tax Commission

Recordkeeping guidance

Form / portal Publication 25
Fee None for the page
Timing Ongoing
Who needs it Registered taxpayers and resale users

Public guidance covering sales-tax licensing, exemption records, and general sales-tax rules.

Open official link

Source group

Entity Tax Maintenance

Utah Division of Corporations & Commercial Code

Entity tax treatment

Form / portal Guidance page
Fee None for the page
Timing During planning and annually
Who needs it single-member LLC founders

Utah's guide to common business organizations is the official high-level reference for entity-choice and tax-treatment basics.

Open official link

Utah Division of Corporations & Commercial Code

Recurring entity fee

Form / portal FY2026 fee schedule
Fee USD 18 annual LLC renewal
Timing One year from registration and annually after that
Who needs it single-member LLC founders

This packet did not verify a separate Utah LLC franchise tax. The recurring public state entity fee verified here is the annual renewal.

Open official link

Source group

Federal Reporting

FinCEN

BOI or other federal reporting status

Form / portal Interim Final Rule Q&A
Fee None
Timing Check before filing
Who needs it Everyone forming an entity

As of April 28, 2026, FinCEN says all domestic 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

Utah Department of Workforce Services / Utah State Tax Commission

Employer registration

Form / portal Create a New UI Account for My Business; TC-69 for tax accounts
Fee None stated
Timing When first becoming an employer
Who needs it Businesses hiring employees

Utah's employer FAQ routes new employers into the UI registration flow, while the Tax Commission handles state tax-account registration.

Open official link

Utah Labor Commission

Workers' compensation

Form / portal Coverage path
Fee Premium-based or varies
Timing Before or at hiring
Who needs it Most employers

Utah says that, with a few exceptions, every employer is required to provide workers' compensation coverage for all employees.

Open official link

Utah Labor Commission

Exemption or waiver tools

Form / portal Coverage waivers and verification tools
Fee None for the public tools
Timing Only when a narrow waiver fact pattern applies
Who needs it Employers or statutory-worker fact patterns needing a waiver check

Utah provides coverage-waiver tools, but this packet did not verify a broad CE-200-style certificate for ordinary private employers.

Open official link

Source group

Platform Setup

Etsy Help

Shop opening guide

Form / portal Etsy.com/sell
Fee One-time set-up fee may apply; amount varies by location
Timing Before launch
Who needs it All Etsy sellers

Etsy says sellers start at Etsy.com/sell, use a desktop browser to set up the shop, and complete required two-factor authentication. Etsy also says it does not require a business license, but sellers must follow applicable law.

Open official link

Etsy Help

Etsy Payments enrollment

Form / portal Etsy Payments
Fee No monthly standard-plan fee stated
Timing During onboarding
Who needs it All new Etsy shops

New shops enroll in Etsy Payments as part of opening the shop. Etsy says sellers must be in an eligible country to open a new shop.

Open official link

Etsy Help

Choose individual or business onboarding path

Form / portal Seller-information verification flow
Fee None stated on the page
Timing During onboarding
Who needs it Sellers deciding how to onboard

Etsy says sellers choose whether to onboard as an individual / sole proprietorship or as a business, and that a legal business entity is not required to sell on Etsy.

Open official link

Etsy Help

Identity verification

Form / portal Persona identity-verification flow
Fee None stated on the page
Timing During onboarding
Who needs it New Etsy sellers

Etsy says sellers upload a government-issued ID and selfie; repeated failures can block onboarding.

Open official link

Etsy Help

Bank verification

Form / portal Plaid or manual verification
Fee None stated on the page
Timing During onboarding and after bank changes
Who needs it U.S. sellers using Etsy Payments

Etsy says U.S. sellers verify through Plaid or manual test deposits.

Open official link

Etsy Help

Seller-info confirmation

Form / portal Seller-info confirmation flow
Fee None stated on the page
Timing When Etsy notifies the seller
Who needs it Some Etsy sellers

Etsy says missed legal deadlines can affect payouts and can place a shop into Etsy-initiated vacation mode until required information is confirmed.

Open official link

Etsy Help

Platform pricing

Form / portal Public fee summary
Fee Listing fee $0.20; transaction fee 6.5%; set-up fee varies by location
Timing Before pricing and ongoing
Who needs it All Etsy sellers

Primary public fee source. Re-check the live set-up-fee display during onboarding because Etsy says the amount varies by location.

Open official link

Etsy Help

Payment-processing fee detail

Form / portal Payment-processing fee table
Fee 3% + $0.25 for United States bank accounts as of April 28, 2026
Timing Ongoing
Who needs it Etsy Payments sellers

Etsy says the fee varies by country and is in addition to the transaction fee.

Open official link

Etsy Help

Offsite Ads rule

Form / portal Offsite Ads settings
Fee 15% on attributed orders below the threshold; 12% above the public threshold; fee cap $100 per order
Timing Before launch and at growth milestones
Who needs it Sellers using or subject to Offsite Ads

Etsy says all sellers are automatically enrolled, some can opt out, and shops above the revenue threshold are required to participate for the life of the shop.

Open official link

Etsy Help

Optional subscription

Form / portal Etsy Plus
Fee $10 per month
Timing Optional
Who needs it Sellers who want extra tools

Optional monthly subscription; not required for a normal Utah launch.

Open official link

Etsy

Brand or IP program

Form / portal Reporting Portal
Fee None
Timing Optional
Who needs it Brand owners or rights holders

Etsy does not have an Amazon-style mandatory brand-registry program for sellers.

Open official link

Source group

Fulfillment, Logistics, or Store Operations

Etsy Help

Storefront setup

Form / portal Shop storefront setup
Fee None for the page
Timing Before launch
Who needs it Etsy sellers

Use with listing creation, payment setup, and returns-policy configuration before opening the shop.

Open official link

Etsy Help

Listing creation

Form / portal Listing creation flow
Fee Listing fees apply
Timing Before launch and during operations
Who needs it Etsy sellers

Etsy says sellers must register as a seller before creating a listing and that the item must fit Etsy's allowed-item rules.

Open official link

Etsy Help

Return-policy setup

Form / portal Return-policy settings
Fee None for the settings page
Timing Before publishing physical-item listings
Who needs it Sellers of physical items

Etsy says sellers outside the EU must set a return policy whenever they create or edit a physical-item listing, even if that policy says no returns are accepted.

Open official link

Etsy Help

Category, compliance, or product restriction guide

Form / portal Allowed-item guidance
Fee None for the page
Timing During sourcing or setup
Who needs it Etsy sellers

Items must be made, designed, handpicked, or sourced by the seller and still comply with the Prohibited Items Policy.

Open official link

Etsy

Creativity rules

Form / portal Creativity Standards
Fee None for the page
Timing During sourcing or setup
Who needs it All Etsy sellers

Main public policy reference for handmade, designed, vintage, and craft-supply treatment.

Open official link

Etsy legal

Seller policy

Form / portal Seller Policy
Fee None for the page
Timing Before launch and during operations
Who needs it All Etsy sellers

Core public rule set for accurate shop information, listing honesty, and seller responsibilities.

Open official link

Etsy legal

Prohibited items

Form / portal Prohibited Items Policy
Fee None for the page
Timing Before sourcing and before launch
Who needs it All Etsy sellers

Use when a product may touch alcohol, dangerous goods, illegal goods, or other restricted categories.

Open official link

Etsy Help

Reselling and production-partner limits

Form / portal Guidance pages
Fee None for the pages
Timing Before sourcing or outsourcing
Who needs it Sellers using suppliers or production partners

Public help says drop shipping is not allowed except for narrow craft-supply situations and production partners must be disclosed for original designs.

Open official link

Etsy Help

Shipping workflow

Form / portal Seller-managed shipping workflow
Fee Varies by carrier or label choice
Timing During launch setup and order fulfillment
Who needs it Etsy sellers shipping physical items

Etsy sellers remain responsible for processing, labeling, and shipping orders accurately.

Open official link

Etsy Help

Shipping labels

Form / portal Etsy shipping-label purchase flow
Fee Varies by carrier and service
Timing During order fulfillment
Who needs it Sellers using Etsy labels

Optional label tool; can change workflow and claim handling.

Open official link

Etsy Help

Marketplace sales-tax collection by Etsy

Form / portal U.S. sales-tax help page
Fee None for the page
Timing Ongoing
Who needs it U.S.-shipping Etsy sellers

Etsy says it automatically calculates, collects, and remits U.S. state sales tax where required; this supports the platform side of Utah's marketplace-facilitator branch but does not resolve Utah's separate registration or resale analysis.

Open official link

Etsy Help

Payment-account reserve

Form / portal Reserve explanation
Fee None for the page
Timing Ongoing
Who needs it Some Etsy sellers

Reserve timing and percentages vary by account; treat the existence of reserves as real but account-specific.

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Etsy Help

Purchase Protection

Form / portal Purchase Protection help page
Fee None for the page
Timing When cases arise
Who needs it Etsy sellers

Etsy says qualifying orders up to $250 may be covered, but the program is not insurance and sellers still need accurate processing, shipping, and listing practices.

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Etsy legal policy

Purchase Protection legal policy

Form / portal Legal policy page
Fee None for the page
Timing Re-check on the exact launch date and when case rules matter
Who needs it Etsy sellers

Pair this page with the help article because the public help page already announces updates beginning May 7, 2026, and the legal policy is the stronger source when operational details matter.

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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.

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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.

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Source group

Salt Lake City Branch

Salt Lake City Finance

City business-license portal

Form / portal Business Licensing page
Fee None for the page
Timing Before local opening
Who needs it Salt Lake City-based businesses

Salt Lake City says businesses engaging in business within city limits generally need a valid business license and that all commercial licenses must pass zoning, building, and fire review.

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Salt Lake City Finance

City application and home-business path

Form / portal Online application and home-business instructions
Fee Varies
Timing Before local opening
Who needs it Salt Lake City-based businesses

The application page explains the home-business neighborhood-impact exception, online application flow, required supporting documents, and Home Occupation upload step. Use it only after checking the exact address and activity with Business Licensing, because the city treats the exception as address-specific rather than automatic.

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Salt Lake City Maps

City zoning and parcel lookup

Form / portal Online zoning map
Fee None for the page
Timing Before relying on a home-based address or signing a local lease
Who needs it Salt Lake City-based businesses

Salt Lake City says you can enter a valid city address, view zoning and parcel information, and click the property for more detail. The same page says Planning should be contacted before starting a project because recently adopted amendments may not be reflected immediately.

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Salt Lake City Planning Division

City land-use and permit research path

Form / portal Zoning page, land-use tables, Citizens Access Portal, and Planning Counter
Fee None for the pages
Timing Before relying on the home-business exception or changing use at an address
Who needs it Salt Lake City-based businesses

Planning says founders can use the online zoning map to find zoning, use Chapter 21A.33 land-use tables to see allowed uses, research property information in the Citizens Access Portal, and use the Planning Counter / One-Stop Shop as the first contact for project questions.

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Salt Lake City Finance

City forms and application links

Form / portal Applications and Links
Fee Varies
Timing If the home-business or commercial application branch applies
Who needs it Salt Lake City-based businesses

Public page links to the Application for New Home Business License and other city licensing forms and materials.

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Salt Lake City

City fee schedule

Form / portal Fee schedule
Fee Home occupation $153; commercial $193; employee fee $28 per worker if more than one employee
Timing If a city license applies
Who needs it Salt Lake City-based businesses

Current Salt Lake City fee schedule amended January 29, 2026 shows the baseline business-license fees used in this packet.

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