Do You Need a Business License to Sell on Etsy?
Learn when you need a business license to sell on Etsy, including hobby vs business rules, local permits, sales tax, and home-based shop requirements.
I run a small Etsy shop in California that started as a side project but has grown this year, and I’m trying to get the business paperwork in order. I registered a DBA for my shop name, but I’m stuck on the city business license because I live in an apartment and my property management won’t sign paperwork related to operating a business at the address.
When I asked at city hall, I was told I could use a virtual office address instead, but I’m not sure what’s actually required or what a safe option looks like. I also want to sell at local pop-up markets and swap meets, and I’ve been told I may need both a city business license and a California seller’s permit.
What’s the best way to handle the business license and seller’s permit requirements for an Etsy seller in California when you can’t use your apartment address, and is a virtual office a legitimate solution?
Hi! In California, the “city business license” part is local (each city has its own rules), but as a general, safe approach: you want your license tied to the real place you run the business from (even if it’s a home-based Etsy shop), and then use a separate mailing address (PO box/CMRA/virtual mailbox) if your apartment/landlord situation is the issue. A “virtual office” can be legitimate only if your city explicitly allows it for your type of business, but you don’t want to list an address where you’re not actually operating if the city treats that as the business location.
Here’s the cleanest way to handle it without guessing.
Ask your city/business licensing office these two very specific questions (these exact terms matter):
Can I list my apartment as the “business location” (home occupation) but use a different “mailing address”?
Is a property manager/landlord signature actually required for a home occupation business license, or only for certain activities?
If your city truly requires property-owner signoff and your management won’t do it, your realistic options are:
What I’d avoid: listing a virtual office as your “business location” if you’re actually making/packing/holding inventory at your apartment. If there’s ever a zoning complaint, business tax audit question, or licensing review, that mismatch can become a headache.
If you only sell physical products through Etsy (and don’t do any in-person or off-Etsy direct sales), many sellers aren’t required to register for a CA seller’s permit because Etsy is treated as a marketplace facilitator and generally handles the sales tax side for those marketplace sales.
But the moment you sell in person (pop-ups, swap meets, craft fairs) or do direct sales (your own site, Instagram invoices, Square at events, etc.), you generally do need a CDTFA seller’s permit (or sometimes a temporary seller’s permit, depending on your situation). For swap meets/flea markets/special events, California is pretty clear that sellers are generally required to have a seller’s permit, and event operators typically ask for your permit info.
Also, if you hold a seller’s permit and sell at events, you may need to register “sub-permits” or add temporary selling locations depending on how you’re set up and what the event/operator requires.
If you tell me your city (just the city name is enough) and whether you’re selling physical goods vs digital, I can help you figure out which path is most likely to work there—and what wording to use when you follow up with the business license office so you get a clear yes/no on the virtual office vs mailing address question.
Related questions
I’m a California Etsy seller and got a CDTFA notice to file. How do I report marketplace sales if Etsy collected/remitted tax, and what Etsy records do I use?
I’m a California Etsy seller trying to file a CDTFA sales tax return with under $300 in Etsy sales, and I’m unsure what to report and which totals to use.
I’m opening an Etsy shop and stuck on identity verification—will Etsy accept a temporary paper driver’s license, or do I need another ID?
I sell on Etsy and want consistent listing photo thumbnails without awkward cropping or extra space in search and my shop. What image size and framing works best?
I run an Etsy shop and I’m getting lots of Etsy views and visits but only one order. What’s the difference, and how can I improve conversions?
I sell fragile sculptures on Etsy and a buyer says an order arrived damaged even though the box looks fine. Should I use an Etsy case or file a carrier claim?
Related posts
Learn when you need a business license to sell on Etsy, including hobby vs business rules, local permits, sales tax, and home-based shop requirements.
Discover how to ship Etsy orders via parcel lockers and drop-off points using USPS, UPS Access Points, Evri, InPost and more for secure, flexible delivery.
Turn your Etsy views into steady sales with better keywords, pricing, photos, and conversion-focused listing tweaks that build trust and boost shop revenue.
Learn how to set up Google Analytics 4 for your Etsy shop step by step to track traffic, buyer behavior, keywords, sales funnels, and marketing performance.
Streamline batch shipping on Etsy with a simple system that saves time, cuts postage costs, automates labels, and boosts order accuracy for happy repeat buyers.
Holiday shipping deadlines guide for Etsy sellers with USPS, UPS, FedEx cutoff dates, processing times, packaging tips, and planning strategies to avoid late deliveries.