Should I register my Etsy shop as a 'business' or 'individual' if I have an LLC?

If you have an EIN and file taxes as a business entity (not a disregarded entity), register as a business. Etsy will then verify your entity name and EIN against IRS records. Single-member LLCs taxed as disregarded entities can register as individuals and provide their SSN/ITIN.

What happens if I do not complete Etsy's seller verification?

Etsy will withhold your payouts until verification is complete. If you miss the deadline communicated in your Shop Manager dashboard, you have 90 days before your shop may be closed.

Etsy KYC for LLCs: All 50 States (2026)

How to pass Etsy verification as an LLC

Etsy requires sellers using Etsy Payments to complete identity and tax verification before receiving payouts. For an LLC registered as a business (not a disregarded entity), Etsy collects the entity name, legal address, EIN or other taxpayer number, and verifies this information against the IRS database. Etsy also requires a government photo ID and selfie via its identity-verification partner Persona, plus a bank account linked to receive Etsy Payments disbursements.

What Etsy requires from an LLC

LLC entity name verified against IRS. The business entity name and taxpayer number must match IRS records. Etsy checks this automatically; mismatches delay payout activation.
Employer Identification Number (EIN). For LLCs taxed as a business (multi-member or single-member electing corporate tax treatment), the EIN is required. Single-member disregarded-entity LLCs may use the owner's SSN/ITIN instead.
Taxpayer information and IRS verification. Etsy submits your taxpayer details to the IRS for verification. Business sellers complete this during Etsy Payments setup; the name and EIN must match IRS records exactly.
Government photo ID and selfie (via Persona). Etsy partners with Persona to verify identity. You must submit a government-issued photo ID and a selfie; Persona performs biometric comparison.
Bank account for Etsy Payments disbursements. A US bank account in the name of the business or business owner to receive Etsy Payments payouts.

Not legal advice: Requirements change. Confirm with Etsy. Reviewed 2026-07-21.

Frequently Asked Questions

: If you have an EIN and file taxes as a business entity (not a disregarded entity), register as a business. Etsy will then verify your entity name and EIN against IRS records. Single-member LLCs taxed as disregarded entities can register as individuals and provide their SSN/ITIN.
: Etsy will withhold your payouts until verification is complete. If you miss the deadline communicated in your Shop Manager dashboard, you have 90 days before your shop may be closed.

What Etsy requires from an LLC

Etsy verification by state

Frequently Asked Questions

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