Should I register my Etsy shop as a 'business' or an 'individual' if I have a Washington 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 Washington Certificate of Formation. A single-member Washington 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.

What does the Washington LLC itself cost before I can start selling through Etsy?

Washington charges $200 to file a Certificate of Formation, and that is the state's fee to create the LLC. Washington publishes a turnaround of within 15 business days (paper). Etsy charges nothing for verification itself, so the $200 filing fee and Washington's ongoing obligations are the real cost of getting verified as a Washington entity.

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

Etsy does not check where you live, only that the Washington entity is validly registered and that the details you enter match Washington'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 Washington's $200. Forming in Washington while working somewhere else usually means paying both states, not one.

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

Not for your Etsy orders themselves. Washington charges a 6.5% 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 Washington registration once you also sell off-marketplace and either have physical presence in Washington or cross its remote-seller threshold of $100,000 in sales in the previous or current calendar year.

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

Upload the Certificate of Formation. Washington does not issue a document called Articles of Organization; the Certificate of Formation is the same instrument under the name Washington 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 Washington LLC

What Etsy asks for at signup, and which Washington 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 Washington LLC is generally eligible for Etsy verification — you will need to provide your Certificate of Formation, EIN, beneficial-owner ID, and a valid US business address. Nothing about forming in Washington 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 Washington LLC registered as a business (not a disregarded entity), Etsy collects the entity name as it appears on your Certificate of Formation, 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 Washington the entity behind that check is an LLC created by filing a Certificate of Formation, which costs $200. Washington publishes a turnaround of within 15 business days (paper). Because Washington 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.

Washington has 37,241 solo retail trade businesses with no employees, averaging $55,390 in annual receipts (U.S. Census Bureau, Nonemployer Statistics (NES), 2023).

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

What Etsy requires, and how a Washington LLC meets each

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

Washington-specific things to watch

Washington 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. (Washington's report records the LLC's governors (members/managers) on the public record.)
Washington issues a Certificate of Formation rather than "Articles of Organization." When Etsy asks for "formation documents," upload your Certificate of Formation.
Budget for Washington's ongoing LLC costs before projecting your Etsy margins: Washington imposes the Business & Occupation (B&O) tax on gross receipts.

Washington sales tax & nexus rules for Etsy sellers

Washington charges a 6.5% state sales-tax rate, and like every state with a sales tax it has a marketplace-facilitator law — Etsy collects and remits Washington sales tax on your marketplace orders for you. You still need your own Washington registration if you also sell off-marketplace (your own site, invoices) and either have physical presence in Washington — 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.

Washington has no transaction count threshold. Washington's combined state and local rates range from 7.5% to 10.4% depending on location — Seattle is at 10.25%. Washington broadly taxes digital products, streaming services, and SaaS. The state also has a Business & Occupation (B&O) tax on gross receipts which is separate from sales tax. Register through the Washington Department of Revenue.

How to verify your Washington LLC on Etsy

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

Non-US founders with Washington LLCs

Non-US sellers can use Etsy Payments in supported countries, but a Washington LLC's seller account must be linked to a US bank account or an eligible payment method. Non-US beneficial owners of a Washington 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 Washington Certificate of Formation. A single-member Washington 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.
: Washington charges $200 to file a Certificate of Formation, and that is the state's fee to create the LLC. Washington publishes a turnaround of within 15 business days (paper). Etsy charges nothing for verification itself, so the $200 filing fee and Washington's ongoing obligations are the real cost of getting verified as a Washington entity.
: Etsy does not check where you live, only that the Washington entity is validly registered and that the details you enter match Washington'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 Washington's $200. Forming in Washington while working somewhere else usually means paying both states, not one.
: Not for your Etsy orders themselves. Washington charges a 6.5% 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 Washington registration once you also sell off-marketplace and either have physical presence in Washington or cross its remote-seller threshold of $100,000 in sales in the previous or current calendar year.
: Upload the Certificate of Formation. Washington does not issue a document called Articles of Organization; the Certificate of Formation is the same instrument under the name Washington uses for it, and it is what Etsy means by a formation or business-registration document.