Latest / The Modern Etsy Seller Podcast / EP 20. Do I Need an LLC to Open an Etsy Shop? | Etsy Tips for Beginners

Transcript

EP 20. Do I Need an LLC to Open an Etsy Shop? | Etsy Tips for Beginners · The Modern Etsy Seller Podcast

• 0:04
  SPEAKER_00: Hey there, welcome to the Modern Etsy Seller Podcast.
• 0:07
  SPEAKER_00: And what you're wondering, the segment where I answer one specific Etsy question in under five minutes.
• 0:13
  SPEAKER_00: I'm Melissa, a busy working mom with two profitable Etsy shops, and I help other busy women make money with Etsy and print on demand.
• 0:21
  SPEAKER_00: Let's get to it.
• 0:22
  SPEAKER_00: The question I'm answering today is do I need an LLC to open an Etsy shop?
• 0:27
  SPEAKER_00: And the quick answer here is no, you do not need an LLC to open an Etsy shop.
• 0:32
  SPEAKER_00: But let me add a quick disclaimer here.
• 0:35
  SPEAKER_00: I'm not a lawyer or an accountant, so nothing that I share should be taken as legal or financial advice.
• 0:41
  SPEAKER_00: I am simply sharing my own experience and what I've learned along the way.
• 0:45
  SPEAKER_00: When it comes to anything legal or financial and your business, I always recommend talking to a qualified professional who can advise you based on your specific situation.
• 0:55
  SPEAKER_00: Now, with that said, when you open an Etsy shop, you're typically operating as what's called a sole proprietor.
• 1:02
  SPEAKER_00: That means you're running your business as yourself without forming a separate legal business entity.
• 1:08
  SPEAKER_00: There's no special paperwork required to get started.
• 1:11
  SPEAKER_00: You open your shop on Etsy and you're in business.
• 1:14
  SPEAKER_00: This is completely normal and it's how so many Etsy sellers begin.
• 1:18
  SPEAKER_00: Now there are definitely reasons some people choose to form an LLC.
• 1:22
  SPEAKER_00: Two of the biggest are personal asset protection.
• 1:26
  SPEAKER_00: It helps you separate your personal assets from your business.
• 1:29
  SPEAKER_00: And the other one is additional tax flexibility that could become available as your business grows.
• 1:36
  SPEAKER_00: So those are two important considerations, especially as your income increases.
• 1:41
  SPEAKER_00: But here's what I don't want you to do.
• 1:44
  SPEAKER_00: I don't want you to let this question stop you from getting started.
• 1:48
  SPEAKER_00: And I'll tell you personally, I don't have an LLC.
• 1:51
  SPEAKER_00: I'm just now starting to seriously look into one after selling on Etsy for more than two years, making over 9,000 sales, and generating more than$200,000 in revenue.
• 2:02
  SPEAKER_00: It's something I thought about here and there, but I'm just now starting to move forward with doing it.
• 2:07
  SPEAKER_00: So the important thing to remember is that you can choose to form an LLC later.
• 2:12
  SPEAKER_00: You don't have to do it at the start.
• 2:14
  SPEAKER_00: You can still do it down the line.
• 2:16
  SPEAKER_00: That could be a week after opening your shop, six months later, two years down the road, or maybe never.
• 2:22
  SPEAKER_00: So if you've been putting off opening your Etsy shop because you thought you needed an LLC first, don't.
• 2:28
  SPEAKER_00: Get that shop open.
• 2:30
  SPEAKER_00: Start creating listings, start learning, start making sales.
• 2:34
  SPEAKER_00: You can always revisit your business structure as your business grows.
• 2:38
  SPEAKER_00: At that point, consider an LLC, do your research, talk to a professional, but don't let it be the reason you never get started.
• 2:45
  SPEAKER_00: All right, that's it for today.
• 2:47
  SPEAKER_00: If you have a question that you'd like me to answer on a future episode of What You're Wondering, then head on over to melissacarroll.co slash question, or you can click the link in the show notes to submit it to me.
• 2:59
  SPEAKER_00: Thanks for joining me today.
• 3:00
  SPEAKER_00: I will see you next time.