LaunchPath

Flagship channel-state reference guide

Start Etsy in Virginia: 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 26, 2026 Reference mode Dense appendix

Built from reviewed public pages for Virginia, IRS, FinCEN, Richmond, 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 26, 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 Virginia, you usually need to do five things in order: Everyone 5 steps

If you want to open Etsy in Virginia, 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 Virginia registrations in place before launch, including your Virginia fictitious-name branch if you will not use your legal name.
  3. Verify local permit, zoning, home-business, and Richmond rules before you store or ship inventory from a home or local address.
  4. Open and verify your Etsy shop, finish Etsy Payments, and build your first compliant listings and shipping settings.
  5. Launch only after your item type, documentation, Virginia tax setup, and customer-service routine 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, single-member LLC is usually the better long-term path.

Avoid these first-launch mistakes

  • Assuming Etsy's shop-opening flow answers Virginia legal or tax questions by itself
  • Using a public brand name without filing the Virginia fictitious-name branch when needed
  • Mixing personal and business money

Virginia-specific friction

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.

  • 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.
  • 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

Etsy identity verification and bank verification can stall a launch if your records do not match.

  • Etsy identity verification and bank verification can stall a launch if your records do not match.
  • 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

If you sell physical products, commercial general liability and product liability planning matter even before any platform rule forces the issue.

  • If you sell physical products, commercial general liability and product liability planning matter even before any platform rule forces the issue.
  • 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.
Back to top Next: Quick-start checklist
Checklist Quick-start checklist Use the research-backed checklist groups before you spend, before your first sale, and before launch goes live. Everyone 3 groups

Do these before you spend money

  • Pick your entity.
  • Pick your business name.
  • Decide your Etsy 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

  • 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

  • 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.
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

  • 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 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

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 item touches health, safety, children, dangerous goods, cosmetics, ingestibles, or strong IP risk, slow down and do category-specific compliance research before listing anything.

    • simple handmade items
    • seller-designed items you can document as your own work
    • clearly qualifying vintage items
    • 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 require specialized approvals unless the guide is explicitly built for them

  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 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.

  3. Step 3: Form the business

    Main guide step 3

    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.

  4. Step 4: Get your EIN

    Main guide step 4

    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.

  5. Step 5: Open banking and bookkeeping

    Main guide step 5

    Do this right away:

    • Open a business checking account.
    • Keep business money separate from personal money.
    • Save every invoice, receipt, Etsy fee statement, shipping bill, and tax record.
    • Keep a sourcing folder, listing-support folder, and tax folder from day one.

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

    Main guide step 6

    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.

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

    Main guide step 7

    Virginia does not use one statewide local-business-license form for every city or county.

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

    • check Virginia Business One Stop and the local government website,
    • contact the city or county office where you will operate,
    • ask zoning or planning about home occupation, storage, and delivery limits,
    • and ask whether a local business-license or tax account is required.
    • the city expects a business license within 30 days of opening,
    • most businesses renewing a Richmond BPOL license must obtain a Certificate of Zoning Compliance first,
    • Richmond's home-occupation rules do not allow direct sales to customers on the premises or outside storage of products or materials,
    • and the public city record does not give one simple blanket yes or no answer for every home-based Etsy inventory setup.

  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 with Virginia Tax for withholding if you pay wages subject to federal withholding.
    • Register with the Virginia Employment Commission to determine unemployment-tax liability.
    • 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.

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

    Main guide step 9

    Have these ready:

    Why it matters: Platform registration flow: Important Etsy nuance:

    • government-issued ID
    • phone number
    • email address
    • bank account information
    • debit or credit card for Etsy billing
    • tax information
    • business registration details if you formed an entity
    • proof of address or identity if Etsy asks
    • Etsy says it does not require 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.

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

    Main guide step 10

    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.

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

    Main guide step 11

    For a first launch, keep the brand story simple and compliant instead of overbuilding trademark work before demand is proven.

    • Etsy 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.

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

    Main guide step 12

    Use the Etsy-specific version of this section:

    Why it matters: For a beginner launch, seller-managed shipping is the baseline. 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.

  13. Step 13: Confirm item eligibility before scaling

    Main guide step 13

    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.

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

    Main guide step 14

    Once live, keep these habits:

    • reconcile payouts, fees, refunds, and reserves
    • maintain invoices and supplier records
    • keep tax reserves separate
    • answer buyer messages and cases promptly
    • use tracking whenever possible for physical orders
    • avoid mixing personal and business spending

Best practical order for the LLC launch path

  1. Choose the Etsy item lane first.
  2. Choose the entity name.
  3. File the LLC formation document.
  4. Get the EIN.
  5. Open the bank account.
  6. Confirm the Virginia marketplace-seller, registration, and resale path that actually applies.
  7. Start any immediate post-filing state requirement.
  8. Check local permits and zoning, especially if you will operate from a Richmond home address.
  9. Build the Etsy shop.
  10. Finish the listing, shipping, and verification branch.
  11. Calendar the annual registration fee.
  12. Track recurring state, local, and platform obligations on the compliance calendar.
Back to top Next: Virginia tax stack
State filing and tax Virginia tax stack Keep the Virginia registration, tax, and maintenance rules together while you launch. Everyone 7 checks

1. EIN

A typical single-member LLC needs an EIN for banking, payroll, and Etsy operations.

  • A typical single-member LLC needs an EIN for banking, payroll, and Etsy operations.
  • A sole proprietor may not always need one federally, but it is often practical anyway.

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

Register through Virginia's online business registration flow or Form R-1.

  • Register through Virginia's online business registration flow or Form R-1.
  • 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

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.

  • 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.
  • 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

Virginia uses Form ST-10 for resale purchases by a Virginia dealer.

  • Virginia uses Form ST-10 for resale purchases by a Virginia dealer.
  • 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

Virginia generally follows the federal classification of the LLC unless different elections apply.

  • Virginia generally follows the federal classification of the LLC unless different elections apply.
  • A default single-member LLC is usually treated as disregarded for income-tax purposes.

6. Entity filing-fee or franchise-tax rule

The recurring Virginia LLC maintenance item verified here is the $50 annual registration fee, not a separate generic LLC annual report.

  • The recurring Virginia LLC maintenance item verified here is the $50 annual registration fee, not a separate generic LLC annual report.
  • This is distinct from sales-tax, withholding, or other operational tax filings.

7. If the founder changes entity type later

Do not assume a sole-proprietor tax or local account automatically carries over to a later LLC.

  • Do not assume a sole-proprietor tax or local account automatically carries over to a later LLC.
  • Re-check the Virginia Tax and local-license path if you convert or replace the entity.
Back to top Next: Etsy account and operations
Platform setup Etsy account and operations Use this section for the Etsy-specific account, plan, eligibility, and operations work. Everyone 5 steps

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

    Platform step 1

    Have these ready:

    Why it matters: Platform registration flow: Important Etsy nuance:

    • government-issued ID
    • phone number
    • email address
    • bank account information
    • debit or credit card for Etsy billing
    • tax information
    • business registration details if you formed an entity
    • proof of address or identity if Etsy asks
    • Etsy says it does not require 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.

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

    Platform step 2

    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.

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

    Platform step 3

    For a first launch, keep the brand story simple and compliant instead of overbuilding trademark work before demand is proven.

    • Etsy 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.

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

    Platform step 4

    Use the Etsy-specific version of this section:

    Why it matters: For a beginner launch, seller-managed shipping is the baseline. 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.

  5. Step 13: Confirm item eligibility before scaling

    Platform step 5

    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.
Back to top Next: Local permits and Richmond branch
Local branch Local permits and Richmond 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

Virginia pushes many business-permit questions down to counties and municipalities.

  • Virginia pushes many business-permit questions down to counties and municipalities.
  • 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

Richmond Appendix

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

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

Register with Virginia Tax for withholding if you pay wages subject to federal withholding.

  • Register with Virginia Tax for withholding if you pay wages subject to federal withholding.
  • 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

Virginia law generally requires coverage when an employer regularly employs more than 2 part-time or full-time employees.

  • Virginia law generally requires coverage when an employer regularly employs more than 2 part-time or full-time employees.
  • 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

This combo did not identify a general Virginia private-employer disability or paid-family-leave insurance mandate equivalent to New York-style coverage.

  • 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

This combo did not identify a general CE-200-style public exemption certificate for ordinary Virginia employers.

  • This combo did not identify a general CE-200-style public exemption certificate for ordinary Virginia employers.
  • 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.

Insurance reality

If you sell physical products, commercial general liability and product liability planning matter even before any platform rule forces the issue.

  • If you sell physical products, commercial general liability and product liability planning matter even before any platform rule forces the issue.
  • 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.
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 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

  • Finish the Etsy listing, shipping, and policy branch.
  • Confirm item eligibility.
  • Build accurate listings.
  • Complete packaging and fulfillment setup.

Monthly

  • 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

  • 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

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

Common Mistakes New Operators Make

  • Assuming Etsy's shop-opening flow answers Virginia legal or tax questions by itself
  • 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

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.

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 37 rows

Source group

Statewide Start

Virginia Tax

State start-here page

Form / portal Online registration
Fee None stated for registration
Timing First planning or registration step
Who needs it Everyone

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.

Open official link

Virginia Business One Stop

State business portal

Form / portal Business One Stop
Fee One-time portal registration fee shown publicly as $20, plus other agency fees that may apply
Timing Before state and local tasks
Who needs it Founders wanting one-stop routing help

Useful for startup routing, local-license reminders, and state-agency coordination.

Open official link

Virginia.gov

State small business support hub

Form / portal Resource hub
Fee None for the page
Timing Optional
Who needs it Founders needing routing help

Public Virginia.gov hub pointing to Business One Stop and other state business resources.

Open official link

Source group

Entity Choice and Formation

Virginia SCC

Compare business types

Form / portal New-business guidance
Fee None for the page
Timing First decision
Who needs it Everyone

SCC startup guide covers name, registered agent, filing basics, and next-agency reminders.

Open official link

Virginia SCC

Formation hub

Form / portal Forms & Fees / CIS
Fee Varies
Timing Before launch
Who needs it Filing entities

Use SCC forms and the Clerk's Information System for Virginia entity filings.

Open official link

Virginia SCC

Default entity formation filing

Form / portal Articles of Organization of a Virginia Limited Liability Company (LLC1011)
Fee $100
Timing At formation
Who needs it single-member LLC founders

Public SCC instructions show the filing fee and required name, principal-office, and registered-agent information.

Open official link

Virginia SCC

Immediate post-filing requirement

Form / portal Operating agreement and next-step setup
Fee None identified
Timing Immediately after formation
Who needs it single-member LLC founders

Public sources reviewed here did not identify a separate Virginia LLC publication requirement or initial report filing.

Open official link

Virginia SCC

Ongoing entity maintenance

Form / portal Annual registration fee payment
Fee $50
Timing On or before the last day of the month in which the business was organized or registered
Who needs it single-member LLC founders

Public SCC guidance also warns of late penalties and later cancellation risk if the fee is not paid.

Open official link

Source group

Sole Proprietor and Local Name Filings

Virginia Business One Stop

Sole proprietor baseline

Form / portal FAQ guidance
Fee None for the sole-proprietor baseline
Timing First setup step
Who needs it Sole proprietors

Business One Stop says sole proprietorships register the business name through a fictitious-name or DBA filing with the SCC if they are not using the owner's name.

Open official link

Virginia SCC Clerk's Office

Fictitious-name filing

Form / portal Certificate of Assumed or Fictitious Name - Business Conducted by an Individual (SCC59.1-70-IN) or Certificate of Assumed or Fictitious Name - Business Conducted by an Entity (SCC59.1-70-BE)
Fee $10
Timing Before using a trade name
Who needs it Sole proprietors or LLCs using a different public name

Virginia centrally files assumed or fictitious names through the SCC Clerk's Office instead of a county-only DBA system.

Open official link

Virginia Business One Stop

Local business-license lookup

Form / portal Local finance, revenue, permit, or zoning office contact
Fee Varies
Timing Before opening at a Virginia physical location
Who needs it Businesses with a local office, home base, or inventory location

Virginia says business licenses are issued by the city or county where the business is based.

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 who want an EIN

IRS direct EIN path.

Open official link

IRS

EIN paper form

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

IRS reference page for paper EIN application.

Open official link

Virginia Tax

State tax registration

Form / portal Online registration or Form R-1
Fee None stated for registration
Timing Before direct taxable sales or when a Virginia tax account is required
Who needs it Businesses needing Virginia tax accounts

Virginia Tax says all new businesses register online unless they fall into a paper R-1 exception.

Open official link

Virginia Tax

Registration instructions

Form / portal Form R-1 instructions
Fee None for the instructions
Timing During registration
Who needs it Businesses not using the online flow

Current instructions say new businesses generally register online and explain paper-registration exceptions.

Open official link

Virginia Tax

Marketplace or platform tax rule

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

Public Virginia guidance says marketplace-only sellers generally do not need to register to collect Virginia sales tax.

Open official link

Virginia Tax

Retail sales-tax certificate and return baseline

Form / portal Form ST-4 and Form ST-1 context
Fee None for the page
Timing During registration and filing
Who needs it Registered dealers and other registered sellers

Public page says ST-1 replaced older sales-tax returns starting with the April 2025 filing period.

Open official link

Virginia Tax

Resale or exemption certificate

Form / portal Form ST-10
Fee None for the form
Timing After registration or when otherwise valid
Who needs it Sellers buying inventory for resale

Public form describes it as for use by a Virginia dealer buying for resale, lease, rental, or qualifying packaging use.

Open official link

Virginia Tax

Recordkeeping guidance

Form / portal Recordkeeping requirements
Fee None for the page
Timing Ongoing
Who needs it Registered taxpayers and employers

Virginia Tax says businesses should keep tax records for at least 3 years from the due date or filing date, whichever is later.

Open official link

Source group

Entity Tax Maintenance

IRS

Entity tax treatment

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

IRS explains default disregarded-entity treatment unless an election changes it.

Open official link

Virginia SCC

Recurring Virginia entity fee

Form / portal Annual registration fee
Fee $50
Timing Last day of the month in which the LLC was organized or registered
Who needs it single-member LLC founders

Distinct from sales-tax, withholding, or income-tax obligations.

Open official link

Source group

Federal Reporting

FinCEN

BOI status

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

As of April 26, 2026, domestic U.S.-created entities are exempt from BOI reporting under the March 26, 2025 interim final rule.

Open official link

Source group

Employees, Payroll, and Insurance

Virginia Employment Commission

Employer registration

Form / portal Online iFile/iReg or FC-27
Fee None stated
Timing When first becoming an employer or when liability criteria are met
Who needs it Businesses hiring employees

VEC says FC-27, Report to Determine Liability, is the paper registration path.

Open official link

Virginia Tax

Withholding registration

Form / portal Employer withholding account
Fee None stated
Timing When paying wages subject to federal withholding
Who needs it Businesses paying wages in Virginia

Virginia says it generally requires withholding whenever federal law requires withholding.

Open official link

Virginia Workers' Compensation Commission

Workers' compensation

Form / portal Coverage through carrier, approved self-insurance, or other authorized path
Fee Premium-based or varies
Timing Before or at hiring when threshold is met
Who needs it Employers regularly employing more than 2 workers

Public VWC guidance says required coverage cannot be waived for ordinary employees.

Open official link

Virginia Workers' Compensation Commission

Exemption certificate if applicable

Form / portal Rejection of Coverage for eligible executive officers or LLC managers
Fee None identified
Timing Only when eligible and after valid coverage exists
Who needs it Eligible executive officers or LLC managers

Not a general substitute for required coverage.

Open official link

Source group

Platform Setup

Etsy Help

Platform registration guide

Form / portal Shop signup flow at Etsy.com/sell
Fee Location-variable set-up fee may apply; no mandatory monthly seller plan for a standard U.S. shop
Timing Before launch
Who needs it All Etsy sellers

Public help says initial shop setup must be done in a desktop web browser and requires two-factor authentication.

Open official link

Etsy Help

Platform identity and payout verification

Form / portal Etsy Payments, Persona, and Plaid verification
Fee None for verification itself
Timing During onboarding and later account changes
Who needs it All U.S. sellers

Public help says sellers choose individual or incorporated-business onboarding, U.S. bank details are verified with Plaid, and identity verification uses Persona.

Open official link

Etsy Help

Platform pricing

Form / portal Standard shop fee model and optional Etsy Plus
Fee One-time set-up fee varies by location; $0.20 listing fee; 6.5% transaction fee; 3% + $0.25 U.S. payment-processing fee; Etsy Plus is $10 per month
Timing At signup and later
Who needs it All Etsy sellers

Re-check live pricing before acting because Etsy can change operational fees and onboarding charges.

Open official link

Etsy

Brand or IP program

Form / portal Intellectual Property Policy and Reporting Portal
Fee None for the policy or reporting portal
Timing Optional
Who needs it Brand owners and sellers protecting original designs

Etsy does not require an Amazon-style brand registry for a normal launch, but the public IP policy and reporting portal matter if rights issues arise.

Open official link

Source group

Fulfillment, Logistics, or Store Operations

Etsy Help

Fulfillment or store-setup overview

Form / portal Shipping profiles and seller-managed shipping setup
Fee Varies
Timing Before launch
Who needs it Physical product sellers

Public help says sellers remain responsible for getting orders to buyers even when a third party helps with fulfillment.

Open official link

Etsy Help

Category, compliance, or product restriction guide

Form / portal Allowed-item guidance
Fee None for the page
Timing During sourcing and setup
Who needs it Sellers with restricted, vintage, or edge-case items

Reviewed together with Etsy's Prohibited Items Policy and drop-shipping help for handmade, vintage, craft-supply, and reselling boundaries.

Open official link

Etsy Help

Listing and shipping workflow

Form / portal Listing editor and shipping-profile setup
Fee None for the page
Timing During launch setup
Who needs it All Etsy sellers

Etsy says listings require category, photos, processing profile, and estimated delivery date information.

Open official link

Source group

Insurance Checkpoint

Etsy Help

Platform protection or insurance checkpoint

Form / portal Etsy Purchase Protection
Fee None for the program
Timing Re-check before launch and as sales scale
Who needs it Sellers shipping physical goods

As of April 26, 2026, public help says qualifying orders up to $250 may be covered, but Etsy treats this as a platform program, not insurance. The same help page says updates begin on May 7, 2026.

Open official link

Source group

Richmond Branch

City of Richmond Department of Finance

City tax or permit warning

Form / portal BPOL guidance and business-license branch
Fee Varies
Timing If the business is in Richmond
Who needs it Richmond-based businesses

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.

Open official link

City of Richmond Planning and Development Review

City filing information

Form / portal Certificate of Zoning Compliance through the Online Permit Portal
Fee $50 for a home-occupation CZC under the current public fee sheet
Timing Before Richmond home-based operation or before license issuance when applicable
Who needs it Richmond home-based or local-premises businesses

Public zoning materials say residential home-occupation business-license requests use the residential CZC path.

Open official link

City of Richmond Planning and Development Review

City forms page

Form / portal Certificate of Zoning Compliance and Home Occupation Rules
Fee Varies by filing
Timing If a home-occupation or address-specific zoning question applies
Who needs it Richmond-based businesses

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.

Open official link
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