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

Etsy does not check where you live, only that the Minnesota entity is validly registered and that the details you enter match Minnesota'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 Minnesota's $155. Forming in Minnesota while working somewhere else usually means paying both states, not one.

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

Not for your Etsy orders themselves. Minnesota charges a 6.875% 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 Minnesota registration once you also sell off-marketplace and either have physical presence in Minnesota or cross its remote-seller threshold of $100,000 in sales or 200 transactions in the previous 12-month period.

Marketplace Verification

How to pass Etsy verification with a Minnesota LLC

What Etsy asks for at signup, and which Minnesota 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 Minnesota 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 Minnesota 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 Minnesota 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 Minnesota the entity behind that check is an LLC created by filing Articles of Organization, which costs $155. Minnesota 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 Minnesota 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.

Minnesota has 34,058 solo retail trade businesses with no employees, averaging $50,748 in annual receipts (U.S. Census Bureau, Nonemployer Statistics (NES), 2023).

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

What Etsy requires, and how a Minnesota LLC meets each

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

Minnesota-specific things to watch

Minnesota 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. (The Articles of Organization require only organizer names (Minn. Stat. § 322C.0201), but the mandatory annual renewal must include the name and business address of 'the manager of a limited liability company, or chief executive officer' under Minn. Stat. § 5.34(a)(5), so at least one governing person appears on a routine public filing.)
Budget for Minnesota's ongoing LLC costs before projecting your Etsy margins: No franchise tax, but LLCs taxed as partnerships or S corporations owe Minnesota's 'minimum fee' (tiers starting at $250) if the sum of Minnesota property, payroll, and sales/receipts is at least $1,250,000 (inflation-adjusted); single-member LLCs reporting on the owner's Form M1 are exempt.

Minnesota sales tax & nexus rules for Etsy sellers

Minnesota charges a 6.875% state sales-tax rate, and like every state with a sales tax it has a marketplace-facilitator law — Etsy collects and remits Minnesota sales tax on your marketplace orders for you. You still need your own Minnesota registration if you also sell off-marketplace (your own site, invoices) and either have physical presence in Minnesota — an in-state location, inventory, or employees — or cross the state's remote-seller economic-nexus threshold of $100,000 in sales or 200 transactions in the previous 12-month period.

Minnesota's 6.875% state rate is one of the higher statewide rates. Minnesota has recently expanded its tax base to include digital products and services including streaming services. The state also has a separate use tax return requirement for businesses that purchased taxable items without paying sales tax. Register through Minnesota e-Services.

How to verify your Minnesota LLC on Etsy

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

Non-US founders with Minnesota LLCs

Non-US sellers can use Etsy Payments in supported countries, but a Minnesota LLC's seller account must be linked to a US bank account or an eligible payment method. Non-US beneficial owners of a Minnesota 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 Minnesota Articles of Organization. A single-member Minnesota 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.
: Minnesota charges $155 to file Articles of Organization, and that is the state's fee to create the LLC. Minnesota 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 $155 filing fee and Minnesota's ongoing obligations are the real cost of getting verified as a Minnesota entity.
: Etsy does not check where you live, only that the Minnesota entity is validly registered and that the details you enter match Minnesota'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 Minnesota's $155. Forming in Minnesota while working somewhere else usually means paying both states, not one.
: Not for your Etsy orders themselves. Minnesota charges a 6.875% 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 Minnesota registration once you also sell off-marketplace and either have physical presence in Minnesota or cross its remote-seller threshold of $100,000 in sales or 200 transactions in the previous 12-month period.