Can I change my Etsy shop owner from personal to an LLC or sole proprietorship?

Hi! In most cases you don’t need to close your Etsy shop and start over just because you’re moving from “personal” to “business”—but what you can change depends on whether you’re talking about a sole proprietorship (you as the owner) versus an LLC (a separate legal entity in many situations).

For Etsy purposes, here’s the practical breakdown:

• If you stay a sole proprietor: you’re still the legal owner (just “doing business as” a business name). You can usually keep the same shop, keep the same login, and simply update things like your shop name/branding, and make sure your taxpayer info matches how you file taxes (often still your personal name/SSN, unless you’ve set up an EIN for the sole prop).
• If you form an LLC: you can often update your legal/tax info to reflect the LLC (for example, LLC legal name and EIN) if the Etsy Payments account holder details, bank account, and tax identity can be verified consistently. Where sellers run into trouble is when the change looks like a transfer of ownership to a different person/entity—Etsy is strict about identity verification and, generally speaking, shops aren’t meant to be “sold” or transferred like an asset to a totally different owner.

What I’d do (safe steps that usually avoid headaches):

1. Decide what you’re actually changing legally/tax-wise. A sole proprietorship is typically just you (no “owner switch” needed). An LLC may change what name/ID should be on tax forms.
2. In your Etsy shop settings, look for the areas tied to Etsy Payments / Legal & tax information and update only what matches your real, documented setup (legal name, tax ID, business type).
3. Make sure your bank account name matches whatever you put on Etsy Payments (this is a common verification snag).
4. If Etsy won’t accept the change cleanly (or asks for re-verification), contact Etsy Support before making repeated edits—too many mismatched changes can trigger payment holds while they re-verify you.

Because you mentioned you’re on disability benefits: changes in how you’re “set up” (sole prop vs LLC) don’t automatically change whether the income counts, but how you report it and how it’s viewed as self-employment can matter a lot depending on whether you’re on SSDI vs SSI and any work/income rules that apply to you. It’s worth talking to a benefits counselor/SSA rep or a tax pro who understands disability + self-employment so you don’t accidentally create an overpayment situation.

If you tell me whether you’re on SSDI or SSI (just which program, not any personal details), and whether you’re planning single-member LLC or multi-member, I can suggest the cleanest way to set up your Etsy tax/payment details with the least risk of verification issues.