On this guide
Follow the path in order.Etsy channel guide • Virginia launch path
Start Etsy in Virginia
Decide your setup, get the Virginia registration order straight, and finish the early Etsy launch steps without losing the official detail behind the answer.
Last verified April 26, 2026 7 chapters
Best for launching on Etsy in Virginia. Need the full appendix? Open the full reference guide.
On this journey
1 of 7 reviewed
Current chapter: Choose setup
On this journey
1 of 7 reviewed
Current chapter: Choose setup
01
Chapter 1 of 7
Choose the setup you want to launch with
Start with the setup decision first, then use the rest of the guide to build the state registrations and platform steps around it.
Core chapter
What this chapter does
Your setup choice, the short safe path, and the money realities that matter before spending deeply.How to move through it
Review sole proprietor.Use Part 1 to get oriented, then compare both setup paths before you spend more time or money.
3 parts to review • 30 source touchpoints behind the drawers.
Chapter parts
Open Part 1 when you are ready to start working through this chapter.After you start, only one part stays open at a time and the earlier ones stay easy to revisit.
Part 1 of 3
Start here before you spend heavily
A short orientation for the guided journey before the detailed launch steps begin.
Part 1 of 3
Start here before you spend heavily
A short orientation for the guided journey before the detailed launch steps begin.
Short answer
Use this first part only to get oriented. The detailed state, platform, local, and packet steps will follow in order.- First decide whether you are launching as a sole proprietor or a single-member LLC.
- Then work through the Virginia registrations, Etsy setup, local checks, and packet review in order.
Do next: Do not spend money yet.
Why this matters
Key detail
Do not spend money yet.
Keep in mind
- First decide whether you are launching as a sole proprietor or a single-member LLC.
- Then work through the Virginia registrations, Etsy setup, local checks, and packet review in order.
Official links
Up next Compare setup
Part 2 of 3
Compare sole proprietor and LLC
The side-by-side setup comparison.
Part 2 of 3
Compare sole proprietor and LLC
The side-by-side setup comparison.
Short answer
Read both setup paths before you decide which one you want the rest of the launch flow to follow.- Best if you want the cheapest and simplest start.
- Virginia does not require a separate SCC entity-formation filing for a sole proprietor using the owner's legal name.
- Faster launch.
Do next: Review sole proprietor.
Save the path you want to optimize around
The unchosen setup stays visible for comparison, but the chosen one gets visual priority so the reading path feels more intentional.
Quick tradeoff view
Use one pass to compare the launch speed, separation, and upkeep tradeoffs.The detailed comparison stays below. This lens just makes the two setup shapes easier to scan before you read every bullet.
Best for
Sole proprietor
Best if you want the cheapest and simplest start.
Speed to start Quicker start
Owner and business separation Very little separation
Ongoing admin load Lighter upkeep
Best for
single-member LLC
Best if you want a more durable setup for a real business.
Speed to start More front-loaded paperwork
Owner and business separation Cleaner separation
Ongoing admin load More upkeep
Compare details
Sole proprietor
Best for
Best for
Best if you want the cheapest and simplest start.
What it means
- Virginia does not require a separate SCC entity-formation filing for a sole proprietor using the owner's legal name.
- If you use a different public-facing name, Virginia routes the assumed or fictitious-name filing through the SCC Clerk's Office.
- Business income generally runs through your personal tax return unless you later change tax treatment.
- You usually do not get a liability shield.
Why someone chooses it
- Faster launch.
- Lower up-front filing cost.
- Fewer entity-maintenance steps.
Main downside
Personal liability
single-member LLC
Best for
Best for
Best if you want a more durable setup for a real business.
What it means
- Virginia LLC formation uses Articles of Organization filed with the SCC, a Virginia registered agent, and a recurring annual registration fee.
- If the LLC uses a different public-facing brand, the fictitious-name filing is separate.
- Virginia generally follows the federal tax classification you choose or default into.
Why someone chooses it
- Liability protection.
- Cleaner setup for banking, suppliers, bookkeeping, insurance, and scaling.
- Better fit for brands, production partners, employees, and long-term operations.
Main downside
Higher setup friction and cost than a sole proprietorship
Official links
Formation scc.virginia.gov
Compare business types
Formation bos.sbsd.virginia.gov
Sole proprietor baseline
Local scc.virginia.gov
Fictitious-name filing
Federal irs.gov
EIN overview and online application
Local scc.virginia.gov
Formation hub
Formation scc.virginia.gov
Default entity formation filing
Formation scc.virginia.gov
Immediate post-filing requirement
Formation scc.virginia.gov
Ongoing entity maintenance
Federal irs.gov
Entity tax treatment
Tax scc.virginia.gov
Recurring Virginia entity fee
Up next Money and risk
Part 3 of 3
See the money and risk realities before you spend
The upfront friction and risk notes that shape the launch decision.
Part 3 of 3
See the money and risk realities before you spend
The upfront friction and risk notes that shape the launch decision.
Short answer
These are the friction points most likely to catch a new Etsy operator off guard in Virginia.- Virginia's marketplace-only seller guidance is cleaner than some states, but it does not erase the resale-registration question for a Virginia-based Etsy-only seller who wants to buy inventory tax-free.
- Etsy identity verification and bank verification can stall a launch if your records do not match.
- If you sell physical products, commercial general liability and product liability planning matter even before any platform rule forces the issue.
Do next: Review virginia-specific friction.
Why this matters
Virginia-specific friction
Main takeaway
Virginia's marketplace-only seller guidance is cleaner than some states, but it does not erase the resale-registration question for a Virginia-based Etsy-only seller who wants to buy inventory tax-free.
Watch for
- Virginia uses a centralized fictitious-name filing instead of a county DBA model, so the name step is easier than some states but still real.
- Virginia LLC upkeep is simpler than a full annual-report state, but the recurring $50 annual registration fee is real.
- Local business-license expectations can be city-specific, especially in Richmond.
- Richmond home-occupation and zoning limits can matter even when Etsy onboarding itself looks simple.
Etsy-specific friction
Main takeaway
Etsy identity verification and bank verification can stall a launch if your records do not match.
Watch for
- Etsy's allowed-item rules are narrower than a normal "sell anything online" marketplace.
- Listing fees, transaction fees, payment-processing fees, and Offsite Ads can stack quickly if you price loosely.
- Restricted-category, reselling, or listing-accuracy reviews can block listings after you already bought stock.
- Etsy's public shop set-up fee is still location-variable.
Insurance reality
Main takeaway
If you sell physical products, commercial general liability and product liability planning matter even before any platform rule forces the issue.
Watch for
- Etsy's public Purchase Protection help says qualifying orders up to $250 may be covered, but Etsy treats the program as a platform policy, not insurance.
- Etsy recommends shipping insurance for higher-value shipments, and your own coverage becomes more important as order value, product risk, or claim exposure rises.
- Etsy's current public help page says Purchase Protection updates begin on May 7, 2026, so re-check the live help and legal-policy pages if your launch is on or after that date.
Official links
Formation scc.virginia.gov
Compare business types
Local scc.virginia.gov
Formation hub
Formation scc.virginia.gov
Default entity formation filing
Formation scc.virginia.gov
Immediate post-filing requirement
Formation scc.virginia.gov
Ongoing entity maintenance
Federal irs.gov
EIN overview and online application
Federal irs.gov
EIN paper form
Tax tax.virginia.gov
State tax registration
Tax tax.virginia.gov
Registration instructions
Platform tax.virginia.gov
Marketplace or platform tax rule
Tax tax.virginia.gov
Retail sales-tax certificate and return baseline
Tax tax.virginia.gov
Resale or exemption certificate
Tax tax.virginia.gov
Recordkeeping guidance
Platform help.etsy.com
Platform protection or insurance checkpoint
Local rva.gov
City tax or permit warning
Local rva.gov
City filing information
Local rva.gov
City forms page
02
Chapter 2 of 7
Handle the Virginia registration path in order
This is the state-side work before you rely on the platform to carry any part of the operating flow.
Core chapter
What this chapter does
The Virginia and federal registration sequence, tax setup, and state-maintenance checks.How to move through it
Step 2: Choose your name and brand approach.Use the order check first, then move from name and entity work into EIN, banking, and tax setup.
4 parts to review • 41 source touchpoints behind the drawers.
Registration sequence
Keep the Virginia and federal setup in this order.This chapter works best when you keep the filings, EIN, banking, and tax work in one clean sequence instead of bouncing between tabs.
- 1 Use the checklist to keep the order straight
These checklist groups keep the pre-spend, pre-sale, and pre-launch work visible before you open the platform workflow.
- 2 Handle name, entity, and filing setup
Use the name-and-formation steps plus the state LLC order before you open banking or state tax registration.
- 3 Get the EIN and banking basics in place
Use the EIN and banking steps before you start platform onboarding, payouts, or supplier paperwork.
- 4 Close the Virginia tax and filing branch
Keep the Virginia tax and maintenance rules together before you assume the platform solved them.
Chapter parts
Open Part 1 when you are ready to start working through this chapter.After you start, only one part stays open at a time and the earlier ones stay easy to revisit.
Part 1 of 4
Use the checklist to keep the order straight
The quick-start checklist grouped by the main launch phases.
Part 1 of 4
Use the checklist to keep the order straight
The quick-start checklist grouped by the main launch phases.
Short answer
These checklist groups keep the pre-spend, pre-sale, and pre-launch work visible before you open the platform workflow.- Pick your business name.
- Form the business or file the Virginia fictitious-name branch if needed.
- Get an EIN from the IRS if applicable.
Do next: Pick your entity.
See checklist
Do these before you spend money
Grouped so the launch order stays easier to scan.
- Pick your entity.
- Pick your business name.
- Decide your Etsy product lane.
- Avoid regulated or high-risk categories for your first launch unless you deliberately want a harder compliance build.
- Confirm the item fits Etsy's current creativity standards and is not prohibited by Etsy policy.
- Make sure you can document how the item is made, designed, sourced, or lawfully qualifies as vintage or craft / party supply inventory.
Do these before your first sale
Grouped so the launch order stays easier to scan.
- Form the business or file the Virginia fictitious-name branch if needed.
- Get an EIN from the IRS if applicable.
- Open a dedicated business bank account.
- Confirm the Virginia marketplace-seller, registration, and resale path that actually applies to you.
- Check Richmond or other local zoning, home-business, and license rules.
- Create your Etsy seller account and complete verification.
Do these before launch goes live
Grouped so the launch order stays easier to scan.
- Finish Etsy Payments, bank verification, and seller-managed shipping setup.
- Confirm the item fits Etsy's allowed-item rules and your Virginia or Richmond launch model.
- Build the first listing correctly.
- Open the shop with one or two low-risk listings you can fulfill yourself.
- Start small so you can test demand and catch compliance mistakes early.
Official links
Up next Name + filing
Part 2 of 4
Handle name, entity, and filing setup
The name, formation, and LLC-order work for the state launch path.
Part 2 of 4
Handle name, entity, and filing setup
The name, formation, and LLC-order work for the state launch path.
Short answer
Use the name-and-formation steps plus the state LLC order before you open banking or state tax registration.- Step 3: Form the business.
- If you sell under your legal name:.
- File Certificate of Assumed or Fictitious Name - Business Conducted by an Individual.
Do next: Step 2: Choose your name and brand approach.
Step details
Best practical order for a Virginia single-member LLC launch
- Choose the Etsy item lane first.
- Choose the entity name.
- File the LLC formation document.
- Get the EIN.
- Open the bank account.
- Confirm the Virginia marketplace-seller, registration, and resale path that actually applies.
- Start any immediate post-filing state requirement.
- Check local permits and zoning, especially if you will operate from a Richmond home address.
- Build the Etsy shop.
- Finish the listing, shipping, and verification branch.
- Calendar the annual registration fee.
- Track recurring state, local, and platform obligations on the compliance calendar.
Sole proprietor: Decide whether you need a fictitious-name filing
Main takeaway
If you sell under your legal name:
Watch for
- File Certificate of Assumed or Fictitious Name - Business Conducted by an Individual.
- Public SCC filing materials show the form number as SCC59.1-70-IN.
Single-member LLC: Name search and naming standards
Main takeaway
Before filing:
Single-member LLC: File the formation document
Main takeaway
Core filing:
Watch for
- Form name: Articles of Organization of a Virginia Limited Liability Company.
- Form number: LLC1011.
Single-member LLC: Complete the immediate post-filing step
Main takeaway
Adopt the operating agreement and keep it internally.
Watch for
- The public Virginia sources reviewed here did not identify a separate LLC publication requirement or initial report requirement after formation if the ordinary filing path is used.
Single-member LLC: File the fictitious-name form if needed
Main takeaway
If the LLC will operate under a different public-facing name, file Certificate of Assumed or Fictitious Name - Business Conducted by an Entity.
Watch for
- Public SCC filing materials show the form number as SCC59.1-70-BE.
Step 2: Choose your name and brand approach
Main guide step 2
What this step settles
You need to decide whether you are:
Why it matters: Important:
- operating under your own legal name,
- using a Virginia fictitious name,
- selling your own handmade items,
- selling your own original designs,
- selling qualifying vintage,
- or selling qualifying craft or party supplies.
- Etsy shop names do not replace the legal entity name or tax records behind the business.
- Etsy account, bank, identity, and tax details still need to match real-world records.
- If you plan to use a production partner, Etsy expects that to be disclosed on the applicable listings.
- If your public business name differs from your personal or LLC legal name, plan the Virginia fictitious-name filing rather than assuming Etsy naming solves the issue.
Step 3: Form the business
Main guide step 3
What this step settles
If you choose sole proprietor: If you operate under your legal name, Virginia generally does not require an SCC formation filing for the sole proprietorship itself.
- If you choose sole proprietor: If you operate under your legal name, Virginia generally does not require an SCC formation filing for the sole proprietorship itself.
- If you choose sole proprietor: If you use another public-facing name, file the fictitious-name branch with the SCC Clerk's Office before using it.
- If you choose sole proprietor: Either way, still handle Virginia tax registration, local licensing, and Etsy requirements separately.
- If you choose single-member LLC: Do this in order:
- If you choose single-member LLC: Check name availability and naming rules with the SCC.
- If you choose single-member LLC: File Articles of Organization with the SCC and designate a Virginia registered agent.
- If you choose single-member LLC: Put the operating agreement, EIN, and annual-registration-fee calendar in place.
- If you choose single-member LLC: If the LLC will operate under a different brand name, file the fictitious-name branch separately.
Official links
Formation scc.virginia.gov
Compare business types
Local scc.virginia.gov
Formation hub
Formation scc.virginia.gov
Default entity formation filing
Formation scc.virginia.gov
Immediate post-filing requirement
Formation scc.virginia.gov
Ongoing entity maintenance
Formation bos.sbsd.virginia.gov
Sole proprietor baseline
Local scc.virginia.gov
Fictitious-name filing
Local bos.sbsd.virginia.gov
Local business-license lookup
Federal irs.gov
EIN overview and online application
Federal irs.gov
Entity tax treatment
Tax scc.virginia.gov
Recurring Virginia entity fee
Tax tax.virginia.gov
State start-here page
Local bos.sbsd.virginia.gov
State business portal
Official virginia.gov
State small business support hub
Up next EIN + banking
Part 3 of 4
Get the EIN and banking basics in place
The EIN, banking, and recordkeeping baseline before launch.
Part 3 of 4
Get the EIN and banking basics in place
The EIN, banking, and recordkeeping baseline before launch.
Short answer
Use the EIN and banking steps before you start platform onboarding, payouts, or supplier paperwork.- Step 5: Open banking and bookkeeping.
Do next: Step 4: Get your EIN.
Step details
Step 4: Get your EIN
Main guide step 4
What this step settles
Use the IRS online EIN application after the business is formed if you picked an LLC.
Why it matters: For many sole proprietors, an EIN is optional if there are no employees, but it is still useful for banking, supplier paperwork, Etsy setup, and keeping your Social Security number off some business documents.
Step 5: Open banking and bookkeeping
Main guide step 5
What this step settles
Do this right away:
- Open a business checking account.
- Keep business money separate from personal money.
- Save every invoice, receipt, Etsy fee statement, shipping bill, and tax record.
- Keep a sourcing folder, listing-support folder, and tax folder from day one.
Official links
Federal irs.gov
EIN overview and online application
Federal irs.gov
EIN paper form
Tax tax.virginia.gov
State tax registration
Tax tax.virginia.gov
Registration instructions
Platform tax.virginia.gov
Marketplace or platform tax rule
Tax tax.virginia.gov
Retail sales-tax certificate and return baseline
Tax tax.virginia.gov
Resale or exemption certificate
Tax tax.virginia.gov
Recordkeeping guidance
Up next Tax + maintenance
Part 4 of 4
Close the Virginia tax and filing branch
The Virginia tax stack, registration timing, and maintenance follow-up.
Part 4 of 4
Close the Virginia tax and filing branch
The Virginia tax stack, registration timing, and maintenance follow-up.
Short answer
Keep the Virginia tax and maintenance rules together before you assume the platform solved them.- A typical single-member LLC needs an EIN for banking, payroll, and Etsy operations.
- Register through Virginia's online business registration flow or Form R-1.
- Virginia's marketplace-seller page says that if all of your sales in Virginia are conducted through a marketplace facilitator's platform, you generally do not need to register to collect Virginia sales tax.
Do next: Step 6: Register for Virginia tax, seller permit, or resale setup.
Step details
1. EIN
Main takeaway
A typical single-member LLC needs an EIN for banking, payroll, and Etsy operations.
Watch for
- A sole proprietor may not always need one federally, but it is often practical anyway.
2. Virginia sales tax, seller permit, or equivalent registration
Main takeaway
Register through Virginia's online business registration flow or Form R-1.
Watch for
- When you complete a sales-tax registration, Virginia issues Form ST-4.
- Starting with the April 2025 filing period, Virginia sales-tax filers use Form ST-1.
3. Marketplace or platform tax rule
Main takeaway
Virginia's marketplace-seller page says that if all of your sales in Virginia are conducted through a marketplace facilitator's platform, you generally do not need to register to collect Virginia sales tax.
Watch for
- However, the broader Virginia dealer rules still describe in-state retailers with a physical Virginia place of business as dealers, and the resale-certificate materials still focus on the Virginia-dealer path.
- Safe practical reading: marketplace-only collection guidance is real, but a Virginia-based Etsy-only seller that wants resale treatment or expects to add direct off-Etsy sales should confirm the registration path with Virginia Tax before acting.
4. Resale purchases or exempt purchasing
Main takeaway
Virginia uses Form ST-10 for resale purchases by a Virginia dealer.
Watch for
- The public ST-10 form says it is for use by a Virginia dealer who buys tangible personal property for resale, lease, rental, or qualifying packaging use.
- Public-source caveat: the clean answer is not fully spelled out for a Virginia-based marketplace-only Etsy seller who wants to buy inventory tax-free while also relying on marketplace-only sales-tax guidance.
5. Entity tax treatment
Main takeaway
Virginia generally follows the federal classification of the LLC unless different elections apply.
Watch for
- A default single-member LLC is usually treated as disregarded for income-tax purposes.
6. Entity filing-fee or franchise-tax rule
Main takeaway
The recurring Virginia LLC maintenance item verified here is the $50 annual registration fee, not a separate generic LLC annual report.
Watch for
- This is distinct from sales-tax, withholding, or other operational tax filings.
7. If the founder changes entity type later
Main takeaway
Do not assume a sole-proprietor tax or local account automatically carries over to a later LLC.
Watch for
- Re-check the Virginia Tax and local-license path if you convert or replace the entity.
Sole proprietor: Register for Virginia tax, seller permit, or reseller setup
Main takeaway
Use Virginia's online business registration flow or Form R-1 if you fall into a paper-registration exception.
Watch for
- Public-source caveat: the marketplace-only seller branch and the resale-certificate branch are not perfectly clean for a Virginia-based Etsy-only seller. Keep that caveat visible before assuming no registration is needed.
- If you are required to collect Virginia retail sales or use tax, Virginia Tax issues Form ST-4, the Sales Tax Certificate of Registration.
Sole proprietor: Understand the tax reality
Main takeaway
Sole-proprietor business income generally flows through to the owner's tax return.
Watch for
- Virginia withholding, sales-tax, and local-license duties can still apply even if the legal structure is simple.
Single-member LLC: File ongoing entity maintenance
Main takeaway
Key points:
Watch for
- due: on or before the last day of the month in which the LLC was organized or registered.
Step 6: Register for Virginia tax, seller permit, or resale setup
Main guide step 6
What this step settles
Practical rule:
Why it matters: If you will make any direct sales through your own website, invoices, social media, local pickup, or in-person events, re-check registration before those sales begin and do not assume your Etsy-only branch carries over.
- Virginia Tax uses the online registration flow or Form R-1 for business tax registration.
- If you register to collect Virginia retail sales or use tax, Virginia issues Form ST-4, the Sales Tax Certificate of Registration.
- Starting with the April 2025 filing period, registered sales-tax filers use Form ST-1.
- Virginia's marketplace-seller guidance says that if all of your Virginia sales are made through a marketplace facilitator's platform, you generally do not need to register to collect Virginia sales tax.
- Public-source caveat: Virginia's resale-certificate materials still describe Form ST-10 as a certificate for a Virginia dealer, and the broader Virginia retail-sales materials still describe in-state retailers with a physical Virginia location as dealers. A Virginia-based Etsy-only seller who wants to buy inventory tax-free or who expects to add direct off-Etsy sales should confirm the registration path with Virginia Tax before relying on marketplace-only guidance alone.
Official links
Federal irs.gov
EIN overview and online application
Federal irs.gov
EIN paper form
Tax tax.virginia.gov
State tax registration
Tax tax.virginia.gov
Registration instructions
Platform tax.virginia.gov
Marketplace or platform tax rule
Tax tax.virginia.gov
Retail sales-tax certificate and return baseline
Tax tax.virginia.gov
Resale or exemption certificate
Tax tax.virginia.gov
Recordkeeping guidance
Federal irs.gov
Entity tax treatment
Tax scc.virginia.gov
Recurring Virginia entity fee
Federal fincen.gov
BOI status
Tax tax.virginia.gov
State start-here page
Local bos.sbsd.virginia.gov
State business portal
Official virginia.gov
State small business support hub
03
Chapter 3 of 7
Finish the Etsy account and operations branch
Use these steps for the platform-side account, plan, operations, and eligibility work after the state basics line up.
Core chapter
What this chapter does
Etsy account setup, operations, and pre-launch readiness.How to move through it
Step 10: Understand Etsy's fee model before you price anything.Open the Etsy branch only after the Virginia basics line up, then finish plan and operations choices.
3 parts to review • 20 source touchpoints behind the drawers.
Chapter parts
Open Part 1 when you are ready to start working through this chapter.After you start, only one part stays open at a time and the earlier ones stay easy to revisit.
Part 1 of 3
Open the Etsy account
The first account and verification work for the platform path.
Part 1 of 3
Open the Etsy account
The first account and verification work for the platform path.
Short answer
Start the platform onboarding only after the legal name, EIN, and payout details line up cleanly.Do next: Step 9: Create your Etsy shop and enroll in Etsy Payments.
Step details
Step 9: Create your Etsy shop and enroll in Etsy Payments
Platform step 1
What this step settles
Have these ready:
Why it matters: Platform registration flow: Important Etsy nuance:
- government-issued ID
- phone number
- email address
- bank account information
- debit or credit card for Etsy billing
- tax information
- business registration details if you formed an entity
- proof of address or identity if Etsy asks
- Etsy says it does not require 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.
- Etsy may later ask you to confirm additional seller information to comply with laws such as the INFORM Consumers Act, platform reporting rules, and regional marketplace rules. Etsy says missed deadlines can block payouts or place the shop into Etsy-initiated vacation mode.
- Start with Etsy's public shop-opening guide at Etsy.com/sell.
- Set up the shop in a desktop web browser, choose your shop language, country, currency, and shop name, and turn on required two-factor authentication.
- Choose whether you are onboarding as an individual or sole proprietorship, or as an incorporated business.
- Add your bank details, add your billing card, and enroll in Etsy Payments.
- Complete seller verification. Etsy's public help says Persona compares a government ID to a selfie, and U.S. bank details are verified with Plaid.
- Add at least one compliant listing, set shipping and return settings, and open the shop only after the listing and payment setup are accurate.
Official links
Up next Plan + pricing
Part 2 of 3
Review the plan, pricing, and optional programs
Plan, pricing, and optional program decisions before launch.
Part 2 of 3
Review the plan, pricing, and optional programs
Plan, pricing, and optional program decisions before launch.
Short answer
Use this part for the platform plan, pricing, or optional brand and program choices that come before operations.- Step 11: Decide whether you need branding and production-partner setup on day one.
Do next: Step 10: Understand Etsy's fee model before you price anything.
Step details
Step 10: Understand Etsy's fee model before you price anything
Platform step 2
What this step settles
Caveats:
Why it matters: Practical rule: Price the first listings only after you account for listing fees, transaction fees, payment-processing fees, shipping, packaging, returns risk, and any ad charges you choose to use.
- Etsy does not use a mandatory monthly seller-plan choice for a standard U.S. shop.
- As of April 26, 2026, Etsy's public fee pages say a one-time non-refundable set-up fee may apply when you open the shop and that the amount varies by location.
- The listing fee is $0.20 per listing, listings renew every 4 months, and the transaction fee is 6.5% of the displayed price plus shipping and gift wrapping.
- Etsy's public payment-processing page says sellers with a United States bank account pay 3% + $0.25 per order through Etsy Payments.
- Etsy Plus is optional and priced at $10 per month as of April 26, 2026.
- Offsite Ads are automatically enabled. Etsy's public help currently shows 15% below the higher-sales tier, 12% at the higher tier, and a $100 USD per-order fee cap.
- Etsy says the one-time set-up fee varies by location. The reviewed public sources do not publish a Virginia-specific amount, so the exact Virginia amount is unverified until Etsy shows it in onboarding.
- Etsy's public Offsite Ads pages still mix at least $10,000 USD and more than $10,000 USD style wording around the mandatory-participation edge. Re-check the live wording if your shop is near that threshold.
Step 11: Decide whether you need branding and production-partner setup on day one
Platform step 3
What this step settles
For a first launch, keep the brand story simple and compliant instead of overbuilding trademark work before demand is proven.
- Etsy does not have a separate mandatory brand-enrollment program you need to join before a normal first launch.
- What matters first is whether the item fits Etsy's allowed categories, whether you own the rights to the design or branding you are using, and whether any production partner needs to be disclosed.
- If you use print-on-demand or another production partner, Etsy Help says the partner must be producing your original design and must be disclosed on the applicable listings.
- If you are making the item yourself, keep your own photos, process notes, and supplier records so you can support the listing if questions come up.
Official links
Platform help.etsy.com
Platform registration guide
Platform help.etsy.com
Platform identity and payout verification
Platform help.etsy.com
Platform pricing
Platform etsy.com
Brand or IP program
Platform help.etsy.com
Fulfillment or store-setup overview
Platform help.etsy.com
Category, compliance, or product restriction guide
Platform help.etsy.com
Listing and shipping workflow
Platform help.etsy.com
Platform protection or insurance checkpoint
Up next Ops + eligibility
Part 3 of 3
Finish operations and eligibility before scaling
Operations and eligibility checks before the business scales.
Part 3 of 3
Finish operations and eligibility before scaling
Operations and eligibility checks before the business scales.
Short answer
Close the operating branch only after the listing, trip, hosting, or operational eligibility checks are ready.- Step 13: Confirm item eligibility before scaling.
Do next: Step 12: Complete the listing, shipping, and storefront branch.
Step details
Step 12: Complete the listing, shipping, and storefront branch
Platform step 4
What this step settles
Use the Etsy-specific version of this section:
Why it matters: For a beginner launch, seller-managed shipping is the baseline. Do not assume Etsy is warehousing or fulfilling orders for you. Etsy's public shipping help says you remain responsible for getting orders to buyers whether you ship them yourself or use a third party to help.
- create the first listing in Shop Manager,
- choose the right category and item type,
- upload your own product photos and any video you need,
- set processing time, shipping profile, estimated delivery date, returns policy, and origin details accurately,
- disclose any production partner that qualifies,
- and open the shop only after the first listing is accurate enough that you could ship the first order yourself.
Step 13: Confirm item eligibility before scaling
Platform step 5
What this step settles
Etsy allows items that are made by a seller, designed by a seller, handpicked by a seller, or sourced by a seller within Etsy's current policy boundaries.
- Etsy allows items that are made by a seller, designed by a seller, handpicked by a seller, or sourced by a seller within Etsy's current policy boundaries.
- Mass-produced resale is not generally allowed in Etsy's handmade category.
- Etsy Help says drop shipping is not allowed except in narrow craft-supply cases, and production partners are allowed only for the seller's original designs or a buyer's customization.
- Vintage items must be at least 20 years old, and craft supplies have their own rule set.
- Highly regulated, unsafe, infringing, or prohibited items can still be blocked even if the state would otherwise allow the business to operate.
Official links
Platform help.etsy.com
Platform registration guide
Platform help.etsy.com
Platform identity and payout verification
Platform help.etsy.com
Platform pricing
Platform etsy.com
Brand or IP program
Platform help.etsy.com
Fulfillment or store-setup overview
Platform help.etsy.com
Category, compliance, or product restriction guide
Platform help.etsy.com
Listing and shipping workflow
Platform help.etsy.com
Platform protection or insurance checkpoint
04
Chapter 4 of 7
Handle the local and city-specific branches
These local facts can still change the answer even after the state and platform path looks clear.
Optional branch
What this chapter does
Local permits, local taxes, city appendices, and location-specific operating rules.How to move through it
Review richmond appendix.Only turn this chapter on if your location, city, or operating model changes the answer.
2 parts to review • 9 source touchpoints behind the drawers.
Only turn this branch on if it matches your plan
These branch questions keep the main reading path clean. If one matches your situation, the relevant detail blocks below get emphasized.
Matching branch content is now highlighted below.
Chapter parts
Open Part 1 when you are ready to start working through this chapter.After you start, only one part stays open at a time and the earlier ones stay easy to revisit.
Part 1 of 2
Local permits and location checks
Virginia pushes many business-permit questions down to counties and municipalities.
Part 1 of 2
Local permits and location checks
Virginia pushes many business-permit questions down to counties and municipalities.
Short answer
Virginia pushes many business-permit questions down to counties and municipalities.Do next: Review local permits and location checks.
Why this matters
Local permits and location checks
Main takeaway
Virginia pushes many business-permit questions down to counties and municipalities.
Watch for
- For any place where the business will operate:.
- check Virginia Business One Stop,.
- contact the local government office,.
- ask local zoning or building offices if the business will operate from home or store inventory,.
- and ask whether a local business-license or tax account is required.
- Typical local risk areas:.
- business-license or BPOL obligations.
- home occupation restrictions.
- zoning for storage.
- truck or carrier activity at a residence.
- signage, parking, and occupancy issues.
Official links
Up next Richmond appendix
Part 2 of 2
Richmond Appendix
If the business operates in Richmond, add one more review layer.
Part 2 of 2
Richmond Appendix
If the business operates in Richmond, add one more review layer.
Short answer
If the business operates in Richmond, add one more review layer.Do next: Review richmond appendix.
Why this matters
Richmond Appendix
Main takeaway
If the business operates in Richmond, add one more review layer.
Watch for
- Richmond's BPOL page says owners of businesses in the city are required to obtain a Richmond business license annually, and new businesses must obtain a license within 30 days of opening.
- Richmond's zoning FAQ says a Certificate of Zoning Compliance is required to obtain a business license in the city.
- Richmond's current fee sheet shows a $50 filing fee for a home-occupation Certificate of Zoning Compliance.
- Richmond's public home-occupation rules say only household members may be employed on the premises, no outside storage of products or materials is allowed, and products may not be offered for sale directly to customers on the premises.
- Richmond also limits visits associated with the home occupation, including deliveries, to a total of 4 vehicles per day, with no more than 2 persons at any one time and only between 8:00 a.m. and 6:00 p.m..
- Safe practical takeaway: if you plan to make, store, package, photograph, or ship Etsy inventory from a Richmond home, confirm the exact address-specific zoning answer before launch.
- the city expects a business license within 30 days of opening,.
05
Chapter 5 of 7
Use the hiring and insurance branch only if it matches your plan
This branch matters when you expect to hire, scale, or need the insurance follow-up tied to the business model.
Optional branch
What this chapter does
Hiring, payroll, insurance, and scale-up risk reminders.How to move through it
Review insurance reality.Only turn this branch on when hiring, payroll, or coverage questions are close enough to matter.
2 parts to review • 6 source touchpoints behind the drawers.
Only turn this branch on if it matches your plan
These branch questions keep the main reading path clean. If one matches your situation, the relevant detail blocks below get emphasized.
Matching branch content is now highlighted below.
Chapter parts
Open Part 1 when you are ready to start working through this chapter.After you start, only one part stays open at a time and the earlier ones stay easy to revisit.
Part 1 of 2
If you hire, close the employment branch first
The employee registration, payroll, and employment-program branch.
Part 1 of 2
If you hire, close the employment branch first
The employee registration, payroll, and employment-program branch.
Short answer
Use these cards if the business will hire employees or carry payroll responsibilities soon.- Register with Virginia Tax for withholding if you pay wages subject to federal withholding.
- Virginia law generally requires coverage when an employer regularly employs more than 2 part-time or full-time employees.
- This combo did not identify a general Virginia private-employer disability or paid-family-leave insurance mandate equivalent to New York-style coverage.
Do next: Review 1. employer registration.
Why this matters
1. Employer registration
Main takeaway
Register with Virginia Tax for withholding if you pay wages subject to federal withholding.
Watch for
- Register with the Virginia Employment Commission to determine unemployment-tax liability.
- VEC offers online registration and mail-in registration using Form FC-27, Report to Determine Liability.
2. Workers' compensation
Main takeaway
Virginia law generally requires coverage when an employer regularly employs more than 2 part-time or full-time employees.
Watch for
- There are no general waivers or exceptions for employers who are required to carry coverage.
- Virginia workers' compensation coverage generally becomes mandatory when you regularly employ more than 2 part-time or full-time workers.
- There is no general public waiver path for employers that are required to carry Virginia workers' compensation coverage.
3. Disability, paid leave, or similar coverage
Main takeaway
This combo did not identify a general Virginia private-employer disability or paid-family-leave insurance mandate equivalent to New York-style coverage.
4. Exemption certificate if applicable
Main takeaway
This combo did not identify a general CE-200-style public exemption certificate for ordinary Virginia employers.
Watch for
- Eligible executive officers or LLC managers can reject their own workers' compensation coverage only after the business has valid coverage in place and the required rejection filing is made.
Official links
Up next Insurance branch
Part 2 of 2
Keep the insurance branch visible as you scale
The insurance, liability, and scale-trigger branch.
Part 2 of 2
Keep the insurance branch visible as you scale
The insurance, liability, and scale-trigger branch.
Short answer
This is the insurance and liability follow-up tied to hiring, products, services, or growth.- If you sell physical products, commercial general liability and product liability planning matter even before any platform rule forces the issue.
Do next: Review insurance reality.
Why this matters
Insurance reality
Main takeaway
If you sell physical products, commercial general liability and product liability planning matter even before any platform rule forces the issue.
Watch for
- Etsy's public Purchase Protection help says qualifying orders up to $250 may be covered, but Etsy treats the program as a platform policy, not insurance.
- Etsy recommends shipping insurance for higher-value shipments, and your own coverage becomes more important as order value, product risk, or claim exposure rises.
- Etsy's current public help page says Purchase Protection updates begin on May 7, 2026, so re-check the live help and legal-policy pages if your launch is on or after that date.
06
Chapter 6 of 7
Keep the operating calendar and mistake list close after launch
Once you are live, use the ongoing calendar and the mistake list to keep the business on a safer path.
Core chapter
What this chapter does
The recurring compliance calendar, live-operating routine, and beginner mistakes to avoid.How to move through it
Assuming Etsy's shop-opening flow answers Virginia legal or tax questions by itself.Use the recurring calendar first, then keep the repeated-mistake notes close after launch.
2 parts to review • 25 source touchpoints behind the drawers.
Chapter parts
Open Part 1 when you are ready to start working through this chapter.After you start, only one part stays open at a time and the earlier ones stay easy to revisit.
Part 1 of 2
Use the ongoing compliance calendar
The recurring compliance calendar grouped by timing.
Part 1 of 2
Use the ongoing compliance calendar
The recurring compliance calendar grouped by timing.
Short answer
This groups the recurring checks by when they matter after launch.- Get EIN if applicable.
- Finish the Etsy listing, shipping, and policy branch.
- Confirm item eligibility.
Do next: Finish entity or Virginia fictitious-name setup.
See checklist
Before first sale
Grouped so the launch order stays easier to scan.
- Finish entity or Virginia fictitious-name setup.
- Get EIN if applicable.
- Open bank account.
- Confirm the Virginia tax and resale path that actually applies.
- Check local permits.
- Complete Etsy verification.
Before first live launch
Grouped so the launch order stays easier to scan.
- Finish the Etsy listing, shipping, and policy branch.
- Confirm item eligibility.
- Build accurate listings.
- Complete packaging and fulfillment setup.
Monthly
Grouped so the launch order stays easier to scan.
- Reconcile payouts, fees, refunds, and reserves.
- Review cash reserves for taxes.
- Review margins, inventory age, and shipping performance.
- Check account health and buyer messages.
Quarterly
Grouped so the launch order stays easier to scan.
- File any Virginia ST-1 sales-tax return cadence assigned to you if you are registered.
- Review estimated-tax exposure if profits are rising.
Annual or periodic
Grouped so the launch order stays easier to scan.
- Pay the Virginia LLC annual registration fee by the last day of the anniversary month if you formed an LLC.
- File annual federal and Virginia income-tax returns.
- Renew local business-license or tax accounts if your locality requires it.
- Re-check Etsy fee, Offsite Ads, verification, and Purchase Protection pages before relying on older screenshots or notes.
Official links
Platform help.etsy.com
Platform protection or insurance checkpoint
Federal irs.gov
EIN overview and online application
Federal irs.gov
EIN paper form
Tax tax.virginia.gov
State tax registration
Formation scc.virginia.gov
Compare business types
Platform help.etsy.com
Platform registration guide
Platform help.etsy.com
Fulfillment or store-setup overview
Tax tax.virginia.gov
State start-here page
Up next Common mistakes
Part 2 of 2
Common Mistakes New Operators Make
The most common mistakes from the research pack plus the first-launch recommendation.
Part 2 of 2
Common Mistakes New Operators Make
The most common mistakes from the research pack plus the first-launch recommendation.
Short answer
These are the repeated errors called out in the research pack.- Using a public brand name without filing the Virginia fictitious-name branch when needed.
- Mixing personal and business money.
- Treating marketplace tax collection as if it automatically answers the resale and registration branch.
Do next: Assuming Etsy's shop-opening flow answers Virginia legal or tax questions by itself.
Why this matters
Practical first-launch recommendation
- If you are testing casually with minimal risk, sole proprietor can work.
- If you intend to build a real Etsy business, single-member LLC is usually the better long-term path.
Key detail
Assuming Etsy's shop-opening flow answers Virginia legal or tax questions by itself
Keep in mind
- Using a public brand name without filing the Virginia fictitious-name branch when needed
- Mixing personal and business money
- Treating marketplace tax collection as if it automatically answers the resale and registration branch
- Launching with regulated products too early
- Keeping weak supplier or creation documentation
- Missing the Virginia LLC annual registration fee
- Treating Etsy as the compliance department
Official links
Formation scc.virginia.gov
Compare business types
Local scc.virginia.gov
Formation hub
Formation scc.virginia.gov
Default entity formation filing
Formation scc.virginia.gov
Immediate post-filing requirement
Formation scc.virginia.gov
Ongoing entity maintenance
Federal irs.gov
EIN overview and online application
Federal irs.gov
EIN paper form
Tax tax.virginia.gov
State tax registration
Tax tax.virginia.gov
Registration instructions
Platform tax.virginia.gov
Marketplace or platform tax rule
Tax tax.virginia.gov
Retail sales-tax certificate and return baseline
Tax tax.virginia.gov
Resale or exemption certificate
Tax tax.virginia.gov
Recordkeeping guidance
Platform help.etsy.com
Platform protection or insurance checkpoint
Local rva.gov
City tax or permit warning
Local rva.gov
City filing information
Local rva.gov
City forms page
07
Chapter 7 of 7
Review your selected steps and open the packet PDF
Use the review screen to decide what belongs in the packet, then open a real PDF preview in a new tab.
Finish
Review and print
Review the chapters you kept and make sure the right reminders stay visible.
Use this step to keep only the chapters that match the launch plan now, then keep the local and city reminders close before you treat the packet as final.
Saved setup choice
single-member LLCThat choice stays visible while the rest of the journey gets lighter.
Packet count
4 chapters selectedOptional branches can stay out of the packet until they match the real launch plan.
Still verify locally
6 remindersLocal tax, zoning, insurance, and platform policy changes still need the official check.
Open the working launch packet with fillable tracker rows, then print or download it from the PDF tab.
Choose what stays in the packet
Selected chapters
- Choose setup
Your setup choice, the short safe path, and the money realities that matter before spending deeply. - Virginia registrations
The Virginia and federal registration sequence, tax setup, and state-maintenance checks. - Etsy setup
Etsy account setup, operations, and pre-launch readiness. - Local and city checks
Local permits, local taxes, city appendices, and location-specific operating rules. - Hiring and insurance
Hiring, payroll, insurance, and scale-up risk reminders. - Ongoing calendar and mistakes
The recurring compliance calendar, live-operating routine, and beginner mistakes to avoid.
See local verification reminders
- Virginia Tax says completion of registration gives you Virginia tax account numbers and Form ST-4 if you registered to collect retail sales or use tax.
- Useful for startup routing, local-license reminders, and state-agency coordination.
- Public Virginia.gov hub pointing to Business One Stop and other state business resources.
- Public page says owners of businesses in Richmond are required to obtain a business license annually and new businesses must obtain a license within 30 days of opening.
- Public zoning materials say residential home-occupation business-license requests use the residential CZC path.
- Richmond's public home-occupation materials say no direct sales may be offered on the premises and no outside storage of products or materials is allowed.
Change your path
Need a different route into this answer?
Use one of these links if you landed in the wrong platform, wrong state, or want the state-only baseline before you keep reading.
Choose another platform Switch away from Etsy without losing the state-first flow. Choose another state for Etsy Stay on Etsy and reopen the state picker for Virginia alternatives. Open the Virginia state guide Compare the platform-specific path with the state-only baseline. Open official sources Jump straight to the official source directory if you want agency links first.