Should I register my Etsy shop as a 'business' or an 'individual' if I have a Indiana 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 Indiana Articles of Organization. A single-member Indiana 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 Indiana. Can I still use a Indiana LLC on Etsy?

Etsy does not check where you live, only that the Indiana entity is validly registered and that the details you enter match Indiana'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 Indiana's $95. Forming in Indiana while working somewhere else usually means paying both states, not one.

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

Not for your Etsy orders themselves. Indiana charges a 7% 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 Indiana registration once you also sell off-marketplace and either have physical presence in Indiana or cross its remote-seller threshold of $100,000 in sales in the previous or current calendar year (no transaction-count threshold).

Marketplace Verification

How to pass Etsy verification with an Indiana LLC

What Etsy asks for at signup, and which Indiana 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 Indiana LLC is generally eligible for Etsy verification — you will need to provide your Articles of Organization, EIN, beneficial-owner ID, and a valid US business address. Nothing about forming in Indiana 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 Indiana LLC registered as a business (not a disregarded entity), Etsy collects the entity name as it appears on your Articles 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 Indiana the entity behind that check is an LLC created by filing Articles of Organization, which costs $95. Indiana 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 Indiana 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.

Indiana has 37,875 solo retail trade businesses with no employees, averaging $53,110 in annual receipts (U.S. Census Bureau, Nonemployer Statistics (NES), 2023).

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

What Etsy requires, and how a Indiana LLC meets each

Requirement	How your Indiana LLC satisfies it
LLC entity name verified against IRS	Use the exact LLC name as Indiana recorded it on your Articles 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 Indiana.
Taxpayer information and IRS verification	Complete the tax interview. A Indiana LLC owned by US persons typically submits a W-9 using its EIN; non-US owners of a disregarded-entity Indiana 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 Indiana filings. Indiana 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 Indiana Articles of Organization.

Indiana-specific things to watch

Indiana 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. (Indiana's Articles of Organization require no member or manager name (IC 23-18-2-4(b)), but the biennial Business Entity Report does: the Secretary of State's INBiz filing requirements call for at least one officer or governing person, and a governing person expressly includes managers (if manager-managed) and members (if member-managed). Those names are public, the Indiana business search exposes an "Incorporator or Governing Person Name" field. Separately, IC 23-0.5-2-14 (added by P.L.239-2025 s.8, effective 2026-01-01) requires every health care entity, LLCs included, to report on the biennial report the name, address and ownership stake of each holder of 5% or more.)

Indiana sales tax & nexus rules for Etsy sellers

Indiana charges a 7% state sales-tax rate, and like every state with a sales tax it has a marketplace-facilitator law — Etsy collects and remits Indiana sales tax on your marketplace orders for you. You still need your own Indiana registration if you also sell off-marketplace (your own site, invoices) and either have physical presence in Indiana — an in-state location, inventory, or employees — or cross the state's remote-seller economic-nexus threshold of $100,000 in sales in the previous or current calendar year (no transaction-count threshold).

Indiana has a flat 7% state sales tax with no local add-ons, making it one of the simplest states for compliance. There are no local sales taxes in Indiana. SaaS is generally not taxable in Indiana as of 2024, but prewritten software delivered electronically is. Register through INtime, Indiana's online tax portal. Note: Indiana repealed its 200-transaction economic-nexus trigger (effective 2024); only the $100,000 sales threshold now applies.

How to verify your Indiana LLC on Etsy

LLC entity name verified against IRS. Use the exact LLC name as Indiana recorded it on your Articles 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 Indiana.
Taxpayer information and IRS verification. Complete the tax interview. A Indiana LLC owned by US persons typically submits a W-9 using its EIN; non-US owners of a disregarded-entity Indiana 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 Indiana filings. Indiana 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 Indiana Articles of Organization.

Non-US founders with Indiana LLCs

Non-US sellers can use Etsy Payments in supported countries, but a Indiana LLC's seller account must be linked to a US bank account or an eligible payment method. Non-US beneficial owners of a Indiana 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 Indiana Articles of Organization. A single-member Indiana 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.
: Indiana charges $95 to file Articles of Organization, and that is the state's fee to create the LLC. Indiana 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 $95 filing fee and Indiana's ongoing obligations are the real cost of getting verified as a Indiana entity.
: Etsy does not check where you live, only that the Indiana entity is validly registered and that the details you enter match Indiana'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 Indiana's $95. Forming in Indiana while working somewhere else usually means paying both states, not one.
: Not for your Etsy orders themselves. Indiana charges a 7% 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 Indiana registration once you also sell off-marketplace and either have physical presence in Indiana or cross its remote-seller threshold of $100,000 in sales in the previous or current calendar year (no transaction-count threshold).