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How do I get an Etsy business license in California if I live in an apartment?

Anonymous • tomorrow • 1 answer

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?

Answers

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.

1) City business license when you live in an apartment (and the landlord won’t sign)

Ask your city/business licensing office these two very specific questions (these exact terms matter):

  1. Can I list my apartment as the “business location” (home occupation) but use a different “mailing address”?

    • Many cities care about where the business activity happens (your apartment) for zoning, even if you don’t want mail or public-facing info tied to it.
  2. Is a property manager/landlord signature actually required for a home occupation business license, or only for certain activities?

    • Some cities require an owner acknowledgment; others don’t for low-impact home businesses (no signage, no customers, no employees on-site, limited deliveries, etc.). Sometimes staff will default to “we need a signature” when the rule is more nuanced.

If your city truly requires property-owner signoff and your management won’t do it, your realistic options are:

  • Use a location you’re genuinely operating from (for example, a small studio/workshop, makerspace, or light commercial space that allows your kind of work and storage).
  • Use a partner/family member’s address only if the business is actually run there (inventory stored there, work done there, records kept there, etc.).
  • Use a virtual office only if the city confirms it’s allowed as the business location for your business type. If they allow it, get that approval in writing (an email is fine) and make sure the virtual office provider gives you whatever proof the city wants (license agreement, utility letter, etc.).

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.

2) Do you need a California seller’s permit if you sell on Etsy?

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.

3) A practical setup that usually works for Etsy sellers doing local markets

  • City business license: Home-based license if possible (business location = your apartment), with a separate mailing address if your city allows it. If your city truly requires landlord signoff and you can’t get it, then use a legitimate alternate workspace/address where you actually operate.
  • Seller’s permit (CDTFA): Get it if you’re doing in-person sales/pop-ups (or any off-Etsy direct sales).
  • Keep it consistent: Your seller’s permit, business license, and any market applications should all reflect reality about where you operate and where records/inventory are kept.

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.

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