No, you don't have to have an LLC for an Etsy shop. You can conduct business for an Etsy store as a sole proprietorship or partnership. The right business structure, such as forming an LLC for Etsy sales and transaction fees can offer additional limited liability protection and other benefits depending on the size and goals of your business. You will need an employment identification number (EIN) whether set up as a sole proprietor, LLC, or another new business structure.