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

Etsy does not check where you live, only that the Montana entity is validly registered and that the details you enter match Montana'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 Montana's $35. Forming in Montana while working somewhere else usually means paying both states, not one.

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

No. Montana levies no statewide sales tax, so there is no Montana permit to hold before your first sale. Where it stops mattering is the state line: a buyer's state can still tax the order once you cross that state's economic-nexus threshold, and being a Montana LLC does not exempt you from it.

Marketplace Verification

How to pass Etsy verification with a Montana LLC

What Etsy asks for at signup, and which Montana 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 Montana 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 Montana 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 Montana 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 Montana the entity behind that check is an LLC created by filing Articles of Organization, which costs $35. Montana 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 Montana 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.

Montana has 8,231 solo retail trade businesses with no employees, averaging $52,127 in annual receipts (U.S. Census Bureau, Nonemployer Statistics (NES), 2023).

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

What Etsy requires, and how a Montana LLC meets each

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

Montana-specific things to watch

Montana 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. (MCA 35-8-208 requires the LLC's annual report to state the names and business mailing addresses of the managers (if manager-managed) or of the members (if member-managed), and these reports are public.)
Budget for Montana's ongoing LLC costs before projecting your Etsy margins: No franchise or privilege tax on LLCs; the Secretary of State currently waives the annual report fee for reports filed by April 15 ($35 if filed late).

Sales tax: none in Montana

Montana has no statewide sales tax, so there is no Montana sales-tax registration to complete before you start selling through Etsy. That is a Montana exemption and nothing more: once your sales into another state cross that state's economic-nexus threshold, you owe its tax on those orders no matter that your LLC is a Montana one.

Montana is one of five states with no sales tax and no economic nexus law. You never owe Montana sales tax regardless of sales volume. Montana's lack of sales tax makes it a popular state for vehicle and aircraft titling LLCs — buyers can register their purchase under a Montana LLC and avoid sales tax in their home state at the time of purchase.

How to verify your Montana LLC on Etsy

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

Non-US founders with Montana LLCs

Non-US sellers can use Etsy Payments in supported countries, but a Montana LLC's seller account must be linked to a US bank account or an eligible payment method. Non-US beneficial owners of a Montana 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 Montana Articles of Organization. A single-member Montana 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.
: Montana charges $35 to file Articles of Organization, and that is the state's fee to create the LLC. Montana 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 $35 filing fee and Montana's ongoing obligations are the real cost of getting verified as a Montana entity.
: Etsy does not check where you live, only that the Montana entity is validly registered and that the details you enter match Montana'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 Montana's $35. Forming in Montana while working somewhere else usually means paying both states, not one.
: No. Montana levies no statewide sales tax, so there is no Montana permit to hold before your first sale. Where it stops mattering is the state line: a buyer's state can still tax the order once you cross that state's economic-nexus threshold, and being a Montana LLC does not exempt you from it.