Etsy is an online marketplace established in 2005. Since its early days, it has become one of the most extensive commerce companies globally. While Etsy sellers span worldwide, most sellers are American. For this reason, this marketplace contributes billions of dollars annually to the nation’s economy. This already successful e-commerce platform experienced even more growth during the COVID-19 pandemic. Lockdowns led to restrictions on physical retail, and online shopping flourished.
Your Etsy Store Is Part of Your Legacy
Etsy enables its sellers to create and sell unique products while leveraging the platform’s features to reach a wider audience and build a successful business. For this reason, it serves as a great platform to empower and support individuals in their entrepreneurial pursuits. Etsy stores range from the sellers’ primary source of income to the sellers’ small side hustle or passion project and all levels in between. Like other digital assets such as cryptocurrency, an Etsy store is part of one’s legacy. Therefore, it deserves a place in estate planning.
Planning for the Future of the Shop
Sellers on Etsy are solo entrepreneurs because Etsy rules state that each shop can have only one owner. Furthermore, they do not have employer-provided disability insurance through Etsy. Consequently, sellers who rely on the income they receive from their Etsy store should make a plan for a period they are unable to run their shop. In the case of short-term illness, vacation mode is helpful. However, sellers should also have a plan in place should a more prolonged disruption in availability to run the shop occur. Setting up an estate plan that covers the online marketplace store allows a trusted person in the seller’s life to access the Etsy account and run the shop. This person can ship items, list new items, edit listings, pay subscription fees, and manage the shop.
Selling an Etsy Business
The owner of an Etsy shop can sell it. However, the buyer must open a new Etsy account and shop. This policy is the same for an Etsy business left to a beneficiary. Please note the new shop owner cannot sell the original owner’s work. Etsy upholds a strict policy that products be handmade by the seller.
Estate Planning for Digital Assets
In an ever-increasing digital world, it has become crucial to have a plan for digital assets, including online shops. When consulting with one of our estate planning attorneys, we can assist you in compiling a comprehensive inventory of your digital assets. Next, we can devise a strategic plan that ensures your heirs have appropriate access to these assets while adhering to data privacy laws. During your consultation, we will be happy to discuss specific assets, such as your Etsy store. Contact us today to get started.