Wall 01Etsy Payments
A country list that leaves many makers out
Etsy Payments only works in a set list of countries, and many countries with large maker communities aren't on it.
Built for · Etsy
A US LLC for Etsy sellers outside the United States
Etsy Payments only works in a set list of countries, and sellers outside it can't get paid through Etsy. A US company with a US bank account is a US seller, which is how makers in those countries get onto the platform.
- Usually
- Structure
- Wyoming LLC
- Plan
- Starter
- On the day
- $391.40
- Every year
- $179
01Why a US company
What it does for Etsy sellers.
Etsy requires sellers in most countries to use Etsy Payments, and Etsy Payments only works where Etsy has a payments partner. A seller outside that list either can't open a shop or can't get paid. A US LLC with an EIN and a US bank account is a US seller, so Etsy Payments pays the company's account and the shop is in the company's name.
02What stands in the way
Three things in the way, and one way through.
Wall 02Verification
The person and the company both checked
Etsy verifies the person behind the shop with ID, and its tax interview checks the company.
Wall 03The bank
A dollar account in the company's name
Payouts need a bank account in the company's name that takes US dollar deposits.
The door
A US LLC, with its EIN and a US bank account.
One company, one EIN and one bank account, which is what everything above asks for.
03The honest part
What to know before you order.
01
Etsy collects sales tax on Etsy sales
Etsy is a marketplace facilitator in every state with a sales tax, so it collects and pays sales tax on your Etsy sales, and you don't register anywhere for them. Sales from your own website are yours to handle once you pass a state's threshold.
02
Where the goods are made and shipped
Goods made and shipped from your country keep the company's income foreign-source and generally outside US income tax. Holding stock with a US fulfilment company raises the same question Amazon sellers face, so ask before you do it.
03
The tax interview
Etsy looks through a single-member LLC to its owner abroad and asks for a W-8. A foreign-owned single-member LLC files Form 5472 with a pro forma Form 1120 every year, even a year with no income. It reports what moved between you and the company, and missing it carries a $25,000 penalty.
The plan that fits
Starter, usually.
A maker's company is simple. Starter covers what Etsy asks for, plus an introduction to a bank that opens the account Etsy Payments pays into.
StarterFits Etsy sellers
For your first company, when it needs to exist and nothing more yet.
To start
$391.40 once
Includes the $102.40 Wyoming fee · then $179 a year
04Questions
Questions from Etsy sellers.
If yours is not here, email us at [email protected] before you order.
A US LLC with a US bank account can be the seller, so the shop is the company's and Etsy Payments pays its account. Etsy still verifies the person running the shop with ID, and it reviews each shop.
Yes, on Etsy sales, in every state with a sales tax. Sales through your own website aren't covered.
Wyoming, for most sellers abroad: $60 a year to the state, no owner on the public record, and the state banks are used to seeing.
Ready when you are
Answer the questions. We do the filing.
It takes about four minutes. You see the whole order, state fee included, before anything is charged.
Compare the plansCompany name
LLC · WYName checked first · Same business day
Start a companyStarter$289 + $102.40 WyomingSame day