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

If you have an EIN and file taxes as a business entity (not a disregarded entity), register as a business. Etsy then verifies the entity name and EIN against IRS records, so the name has to match your Connecticut Certificate of Organization. A single-member Connecticut LLC taxed as a disregarded entity can register as an individual and provide an SSN or ITIN.

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

Etsy withholds payouts until verification is complete, whichever state the shop's LLC comes from. If you miss the deadline shown in your Shop Manager dashboard, you have 90 days before the shop may be closed.

I do not live in Connecticut. Can I still use a Connecticut LLC on Etsy?

Etsy does not check where you live, only that the Connecticut entity is validly registered and that the details you enter match Connecticut's record. The catch is not Etsy, it is the state you actually operate from: states require an out-of-state LLC to register as a foreign LLC before it transacts business there, which is a second filing and a second fee on top of Connecticut's $120. Forming in Connecticut while working somewhere else usually means paying both states, not one.

Do I need a Connecticut sales-tax permit before my first sale through Etsy?

Not for your Etsy orders themselves. Connecticut charges a 6.35% state rate and, like every sales-tax state, has a marketplace-facilitator law that makes Etsy collect and remit it for you. You need your own Connecticut registration once you also sell off-marketplace and either have physical presence in Connecticut or cross its remote-seller threshold of $100,000 in sales AND 200 transactions (both thresholds must be met).

Etsy asks for "Articles of Organization". Connecticut gave me a Certificate of Organization. Which do I upload?

Upload the Certificate of Organization. Connecticut does not issue a document called Articles of Organization; the Certificate of Organization is the same instrument under the name Connecticut uses for it, and it is what Etsy means by a formation or business-registration document.

Marketplace Verification

How to pass Etsy verification with a Connecticut LLC

What Etsy asks for at signup, and which Connecticut LLC documents satisfy each requirement.

By Edmond Hui · Last updated: August 4, 2026

Edmond Hui · Founder, MyStateLLC

Edmond Hui is a software engineer and serial entrepreneur based in New York who has founded multiple online businesses across e-commerce, media, and information publishing. Before transitioning into tech, he spent years as a commercial real estate professional closing deals totaling over 100,000 square feet, giving him firsthand experience with business formation and entity structuring. He built MyStateLLC to provide the free, state-specific LLC guidance he wished existed when forming his own companies.

A Connecticut LLC is generally eligible for Etsy verification — you will need to provide your Certificate of Organization, EIN, beneficial-owner ID, and a valid US business address. Nothing about forming in Connecticut blocks approval, and nothing about it guarantees approval either: the final call is Etsy's.

Etsy requires sellers using Etsy Payments to complete identity and tax verification before receiving payouts. For a Connecticut LLC registered as a business (not a disregarded entity), Etsy collects the entity name as it appears on your Certificate of Organization, the legal address, the 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.

In Connecticut the entity behind that check is an LLC created by filing a Certificate of Organization, which costs $120. Connecticut does not publish a processing time for LLC filings, so treat state approval as the open-ended step in your timeline rather than the Etsy review. Because Connecticut names a member or manager on a routine public filing, the owner name Etsy asks you to confirm is already a matter of public record.

Connecticut has 19,180 solo retail trade businesses with no employees, averaging $89,408 in annual receipts (U.S. Census Bureau, Nonemployer Statistics (NES), 2023).

Not legal advice: Verification requirements change, and so do Connecticut's filing fees and forms. Confirm current platform rules with Etsy, and current filing rules with the Connecticut filing office, before you file. Etsy's requirements were last reviewed 2026-07-21, and Connecticut's figures on this page come from its own published schedule.

What Etsy requires, and how a Connecticut LLC meets each

Requirement	How your Connecticut LLC satisfies it
LLC entity name verified against IRS	Use the exact LLC name as Connecticut recorded it on your Certificate of Organization; it must match your bank account holder name.
Employer Identification Number (EIN)	Provide your federal EIN (free from the IRS; non-US founders without an SSN must apply via Form SS-4 by fax or phone rather than the online tool) — independent of Connecticut.
Taxpayer information and IRS verification	Complete the tax interview. A Connecticut LLC owned by US persons typically submits a W-9 using its EIN; non-US owners of a disregarded-entity Connecticut LLC generally use a W-8 form instead.
Government photo ID and selfie (via Persona)	Provide a government ID for each beneficial owner named in your Connecticut filings. Connecticut names a member or manager on a routine public filing, so at least one name already matches state records.
Bank account for Etsy Payments disbursements	Link a US business bank account opened with your EIN and your Connecticut Certificate of Organization.

Connecticut-specific things to watch

Connecticut names a member or manager on a routine public filing, so Etsy's beneficial-owner check will line up with public state records — you still upload a government ID for each owner. (Connecticut's annual report discloses the LLC's members or managers, a public filing.)
Connecticut issues a Certificate of Organization rather than "Articles of Organization." When Etsy asks for "formation documents," upload your Certificate of Organization.

Connecticut sales tax & nexus rules for Etsy sellers

Connecticut charges a 6.35% state sales-tax rate, and like every state with a sales tax it has a marketplace-facilitator law — Etsy collects and remits Connecticut sales tax on your marketplace orders for you. You still need your own Connecticut registration if you also sell off-marketplace (your own site, invoices) and either have physical presence in Connecticut — an in-state location, inventory, or employees — or cross the state's remote-seller economic-nexus threshold of $100,000 in sales AND 200 transactions (both thresholds must be met).

Connecticut is one of the few states that requires BOTH the dollar and transaction thresholds to be met — exceeding only one is not enough to create nexus. Connecticut does not allow local sales taxes, so the 6.35% state rate is the only rate you'll charge. SaaS and digital products are taxable in Connecticut.

How to verify your Connecticut LLC on Etsy

LLC entity name verified against IRS. Use the exact LLC name as Connecticut recorded it on your Certificate of Organization; it must match your bank account holder name.
Employer Identification Number (EIN). Provide your federal EIN (free from the IRS; non-US founders without an SSN must apply via Form SS-4 by fax or phone rather than the online tool) — independent of Connecticut.
Taxpayer information and IRS verification. Complete the tax interview. A Connecticut LLC owned by US persons typically submits a W-9 using its EIN; non-US owners of a disregarded-entity Connecticut LLC generally use a W-8 form instead.
Government photo ID and selfie (via Persona). Provide a government ID for each beneficial owner named in your Connecticut filings. Connecticut names a member or manager on a routine public filing, so at least one name already matches state records.
Bank account for Etsy Payments disbursements. Link a US business bank account opened with your EIN and your Connecticut Certificate of Organization.

Non-US founders with Connecticut LLCs

Non-US sellers can use Etsy Payments in supported countries, but a Connecticut LLC's seller account must be linked to a US bank account or an eligible payment method. Non-US beneficial owners of a Connecticut LLC must still complete identity verification via Persona with a valid government ID.

Frequently Asked Questions

: If you have an EIN and file taxes as a business entity (not a disregarded entity), register as a business. Etsy then verifies the entity name and EIN against IRS records, so the name has to match your Connecticut Certificate of Organization. A single-member Connecticut LLC taxed as a disregarded entity can register as an individual and provide an SSN or ITIN.
: Etsy withholds payouts until verification is complete, whichever state the shop's LLC comes from. If you miss the deadline shown in your Shop Manager dashboard, you have 90 days before the shop may be closed.
: Connecticut charges $120 to file a Certificate of Organization, and that is the state's fee to create the LLC. Connecticut does not publish a processing time for LLC filings, so treat state approval as the open-ended step in your timeline rather than the Etsy review. Etsy charges nothing for verification itself, so the $120 filing fee and Connecticut's ongoing obligations are the real cost of getting verified as a Connecticut entity.
: Etsy does not check where you live, only that the Connecticut entity is validly registered and that the details you enter match Connecticut's record. The catch is not Etsy, it is the state you actually operate from: states require an out-of-state LLC to register as a foreign LLC before it transacts business there, which is a second filing and a second fee on top of Connecticut's $120. Forming in Connecticut while working somewhere else usually means paying both states, not one.
: Not for your Etsy orders themselves. Connecticut charges a 6.35% state rate and, like every sales-tax state, has a marketplace-facilitator law that makes Etsy collect and remit it for you. You need your own Connecticut registration once you also sell off-marketplace and either have physical presence in Connecticut or cross its remote-seller threshold of $100,000 in sales AND 200 transactions (both thresholds must be met).
: Upload the Certificate of Organization. Connecticut does not issue a document called Articles of Organization; the Certificate of Organization is the same instrument under the name Connecticut uses for it, and it is what Etsy means by a formation or business-registration document.