Do I Need a DBA to Sell on Etsy?

November 1, 2022
dba for etsy

Etsy doesn’t require its individual or business customers to file a DBA to use the Etsy site.

However, state or local laws may require Etsy sellers to file a DBA in certain situations. The most common scenario where a DBA is required is when the Etsy Shop name is different from the business’ official, or legal name.

When Do I Need to File a DBA for Etsy?

If you sell physical or digital products on Etsy, you’ll need to file a DBA only if your Etsy Shop name is different from your business’ real name. For instance, let’s say your Etsy Shop name is “Monica’s Jewelry Creations.” And your business’s official name is “Precious Metal Manufacturing, Inc.” Because you’re conducting business using a name that’s different from your business's legal name, you need to file a DBA for your Etsy Shop’s name.

This DBA requirement doesn’t exist because you’re using Etsy. This filing requirement arises because you’re using a business name in the real world that’s different from your business’ real name. One potential caveat to the above information is if you’re selling food or food products on Etsy.

Do I Need a DBA if I Sell Food on Etsy?

Etsy allows sellers to sell food and other edible products on Etsy and doesn’t require sellers to file a DBA to do so. However, Etsy advises sellers that they may need to follow state and local laws concerning the sale of food products. These legal requirements may set out certain requirements concerning who can make the food, how the food can be packaged, and how the food must be prepared.

There’s a chance that a local rule or law that applies to your selling of food may also impose a DBA filing requirement. You’ll need to check with your local laws and business requirements to know for sure.

Do I Need a Business License to Sell on Etsy?

Etsy doesn’t require its sellers to have a business license. But this doesn’t mean you don’t need one, as a state or local law might require you to have a business license or applicable permit. Generally speaking, if you want to sell products on Etsy as a hobby, you won’t need a business license. However, if you want to sell products on Etsy as part of your business, then your state or local laws could require you to have a business license.

One thing to keep in mind is that even if a business license isn’t required, you still have a legal obligation to pay taxes on any income your sales generate. This is true even if you’re using Etsy as a hobby. You may also be legally obligated to collect sales tax for your state on every applicable transaction you complete as a seller.

Does My Etsy Shop Name Need to Match my Business Name?

No, it doesn't, but you might want it to if you want online shoppers to know your Etsy storefront is for the same business as yours. Another consideration is if you have a DBA for your Etsy shop name or not. If you don’t, then your Etsy shop name may need to match your business name. In other words, if you’re carrying out your Etsy business using a name that’s not the same as your business's legal name, then you may need to file a DBA for the Etsy business name.

Can a DBA Protect My Etsy Shop name?

The best way to protect your Etsy Shop name is to trademark it. Getting a DBA for your Etsy Shop name offers no legal protections to your business’ name. Of course, someone else can’t use your Etsy Shop name for their Etsy Shop. But it’s Esty’s policies that are preventing them from doing that, not the fact that you have a DBA for your Etsy Shop.

One thing to remember is that while Etsy prohibits other users from having the exact same name as your Etsy Shop, they do allow minor variations. For example, if your Etsy Shop name is “Main Street Hobby Creations,” someone on Etsy can set up a shop with an almost identical name, such as “Main Street Hobby Creation.” 

Conclusion

Etsy may not require you to file a DBA for your Etsy Shop, but that doesn’t automatically mean you don’t need one. If you’re using a business name on Etsy that’s different from your business's legal name, then you probably need to file and register a DBA. Another thing to keep in mind is that there could be state and local laws that impose other requirements on you as an Etsy seller, especially if you’re selling food or using Etsy as a business and not a hobby.

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