Anyone can sell on Etsy – it’s the go-to marketplace for crafts, supplies, vintage goods, and small business products. But before you start selling, there are some legal considerations to keep in mind.

Do you need a business license to sell on Etsy? That depends.

License requirements vary based on your location, tax laws, and business setup. If you’re selling for profit, you may need a business operation license to stay compliant.

Is a business license required to sell on Etsy?

Etsy doesn’t require a business license itself, but your local government might – especially if you’re selling for profit. Always check state and local laws.

What is a business license?

A business license is a permit that lets you legally operate and sell under local tax laws. It confirms that your business is recognized by the government and follows necessary regulations.

So, do you have to have a business license to sell on Etsy? The answer depends on where you operate. Once you learn how to sell on Etsy and start making a steady profit, you may need a business license to comply with local government regulations – such as remitting sales tax or registering an occupation permit for a home-based business. Rules depend on your local jurisdiction.

Not all local regulatory authorities have the same business license requirements, so it’s important to research your local taxing authorities to determine your case and its costs. Note that this is not legal advice, so consulting a tax expert is always a good idea.

However, beyond legal requirements, an Etsy business license, a dedicated bank account, and a registered business structure can reduce personal risk and minimize online marketplace expenses from applicable tax advantages and deductions.

What business licenses are required to run an Etsy store?

Before you sell items online, research all the legal requirements for your Etsy shop. Depending on your business activities, location, and the types of products you sell – especially food, health, or handmade items – you may need specific permits from your local government.

Your business structure also affects licensing requirements:

• Sole proprietorship – The easiest setup, but it doesn’t protect your personal assets. Some states require a business license or sales tax permit.
• Limited Liability Company (LLC) – Separates personal and business finances. May need an Etsy business license, EIN, and a business bank account.
• Partnership – Similar to a sole proprietorship but with multiple owners. Requires a business license and EIN.
• Corporation – More complex but ideal for larger businesses. Requires multiple business licenses and tax registrations.

Check your state’s Secretary of State website, county clerk’s office, or other relevant government agencies that manage business operations. Applying for a business license when selling online may include fees, depending on your applicable state sales tax laws.

Here are four common business licenses and other legal considerations that may apply:

How to apply for a business license

Here, we’ll outline a general process for registering your business. However, we’re in no way the sole authority for business licensing rules and regulations. 

Research your specific case through the Small Business Administration and government institutions to ensure everything is in order, from local regulations to remitting sales taxes. Also, consider other optional opportunities, such as obtaining small business insurance.

After learning about the business license needed, continue with the following steps:

• Determine business model – Register as a sole proprietorship, partnership, Limited Liability Company (LLC), or corporation. Note that a sole proprietorship will risk your own assets and income tax. You’ll need an Employer Identification Number as an LLC.
• Register business name – Register a Doing Business As certificate if necessary.
• Apply for additional licenses or permits – See if you need to apply for a home occupation permit, a seller’s permit, or collect state sales tax on your items and other regional requirements. Follow the business license application process closely.

For a more in-depth article, check out our guide on how to get a business license. Use Etsy’s Help Center for important details specific to your store page and its sales tax policies.

Start your Etsy print-on-demand business today!

Are any additional licenses required?

Rules for digital and physical products vary by state, but most regions apply Etsy sales tax only to physical goods. Even if you sell digital, check state laws to avoid unexpected tax obligations.

When running an Etsy shop, you may need additional registrations beyond a standard business license. These help protect your business and keep it legally compliant and may include:

DBA certificate (Doing Business As)

If your Etsy seller name differs from your legal business name, a DBA certificate registers it with your state or county. This is required in some locations to operate under a brand name.

Trademark registration

If you want exclusive rights to your business name, logo, or brand elements, consider trademark registration. This prevents others from using them and helps build a legitimate business.

Is it possible to sell on Etsy without a business license?

You don’t need a business license to sell on the Etsy marketplace, but there are always exceptions. The local laws where your business is located may have permit requirements for specific business activities and structures.

If you’re selling as a creative hobby, you’re in the clear, but a for-profit business has to comply with government regulations and IRS tax laws. Whenever you’re maintaining consistent sales revenue, you’re running a for-profit business and will at least need a business operating license.

While it’s possible to sell on Etsy without a license, applying for a business permit is much easier than proving to the IRS that you’re only making money as a hobby.

Starting an Etsy store? Start with Printify

Now that you know the legal requirements for running an Etsy shop, it’s time to focus on growing your business. The best and easiest way to start is with Printify’s automated production service – sell custom products without worrying about inventory, product fulfillment, or shipping.

Printify is a leading print-on-demand platform that connects Etsy sellers with trusted Print Providers worldwide. Whether you’re designing apparel, home decor, or accessories, Printify lets you create and sell products with no upfront investment or order minimums.

Licenses in place

No matter the size of your business, operating through legal channels is essential. So, do you need a license to sell on Etsy? Some sellers operate as hobbyists and may not require one, but if you’re looking to build and maintain a profitable online business, proper registration is necessary.

Before asking yourself, “Do I need a business license to sell on Etsy?”, consider your business structure and research relevant laws through official government websites to avoid legal issues. Whether you need a license now or later, setting up your Etsy shop correctly will save time and effort as your business grows.

Finally, partner with Printify to scale your Etsy business. A legal business structure combined with Print on Demand can be your solution to running a successful business and growing income.

Are fonts copyrighted? It’s a common question, especially when creating designs or publishing content. Fonts play a significant role in expressing ourselves online and in print, so understanding the copyright rules around them is essential.

This article is your one-stop shop for everything you need to know about copyright protection before slapping those cool fonts on your merch and raking in the dough. Let’s unravel the mysteries of font copyrights and set you on the path to stylish – and legal – success.

What are copyright laws?

Copyright laws are designed to protect intellectual properties, like the artistic elements and design patents associated with fonts. There are usually different copyright rules for the font itself and the typeface. 

The typeface is the overall design of the letters – their unique style and personality – while the font is the digital file that allows you to use that typeface on your computer.

The computer programs within font software are protected by copyright, but the actual design of the letters themselves might not be. It depends on how original the design is and whether it’s been officially documented or registered.

Let’s learn a bit more about copyright and how to navigate rules and legal precedents for different fonts, from freely available ones like many Google Fonts to those with commercial use restrictions.

Understanding font copyright basics

What is copyright?

Copyright is a set of laws protecting creators of original works by giving them exclusive rights to reproduce, distribute, and display their creations. This is especially important for fonts and typeface designs used in both digital and printed media.

Copyright protection applies to the font program – the computer program that renders the font on screens and in print – but not necessarily to the typeface design, which is the arrangement of the letters and characters. 

This doesn’t mean your typed words are copyrighted, but rather how a typeface is designed. While the general idea behind a font (like a handwritten style) can’t be copyrighted, the unique execution of that idea (individual shapes, curves, and details) can be.

The specifics of font copyright

Font licenses specify how a font can be used, modified, and distributed. These licenses are crucial for anyone looking to use fonts commercially, as they define how you’re allowed to use them. 

Computer software – which includes the code that displays the font on a computer or printer – generally has copyright protection. However, the typeface design, which refers to the aesthetic and visual arrangement of the letters, might not be copyrighted unless it qualifies as a distinct artistic work under copyright law.

Font software, different from typeface design, is protected by copyright law, which provides legal control over the replication and distribution of font files. 

While the software itself is protected, the broader concept of the typeface may not be unless certain design elements or original artistic qualities are present that qualify for protection under copyright laws.

Types of fonts and legal considerations

Free vs commercial fonts

While free fonts are appealing, they have limitations and potential legal pitfalls. 

Free fonts are often offered for personal use only, meaning you can use them for personal projects, social media graphics, or non-commercial designs.  Using free fonts for commercial purposes, such as logos, websites, or products for sale, can land you in hot water.

Commercial typeface designs come with a license that grants you specific rights for use. These licenses can vary widely. Some give basic permission for desktop and individual use, while others allow fonts to be used in large-scale commercial projects or even permit modifications and redistribution of the font.

If you’re unsure whether a font is free or commercial, always check its license agreement.

Understanding licenses and restrictions

Font licenses are legal agreements outlining how to use a particular font. 

They typically cover:

• Commercial use – Using the font in products or services for sale.
• Modifications – Changing the font’s design or creating new fonts based on it.
• Distribution – Sharing or embedding the font with others.
• Number of users – How many people can use the font within your organization.

Other licenses, like app licenses, give permission to add fonts to mobile apps or other media.  Each license type specifies restrictions such as acceptable use, the number of installations, and whether the fonts can be embedded in digital or physical products.

Pro tips for using fonts

Need to use a font in a way that’s not covered by the usual agreement? You’ll likely need special permission, especially for big projects or commercial uses. Always read the fine print on those licenses to understand what’s allowed and what’s not.

Open-source fonts are a flexible option since they often allow for changes and commercial use without extra fees, but even those have rules you’ll need to follow. And don’t forget – using fonts on websites might require a special web font license.

Legal challenges and protections

Copyright infringement cases

Using fonts the wrong way can get you in legal trouble. It’s not just about copyright – you could also face issues if you use a font in a way that confuses people about where it came from, especially if it’s a well-known or trademarked font.

Several high-profile cases have highlighted the importance of respecting licenses and understanding the legal boundaries of font usage. 

For example, NBCUniversal faced multiple lawsuits for using fonts beyond the agreed licensing terms, with claims reaching millions of dollars. Similarly, Font Bureau and P22 Type Foundry sued NBCUniversal for $2 million because they used a font in promotional materials, going against the font licensing agreement.

Other notable legal precedent cases:

• Nike font lawsuit. Production Type filed a copyright infringement lawsuit against Nike for allegedly using their well-known trademark font, Kreuz Light, in various marketing campaigns without proper licensing. 
  This notable lawsuit focused on using a proprietary font in commercial advertising without permission, highlighting the legal risks of ignoring these rules.
  
• House Industries lawsuits. House Industries has pursued legal action against several companies, including Shake Shack, Rite Aid, and Michaels, for allegedly infringing on their copyrighted fonts. 

Protecting your own font creations

Protecting your font creations is a must if you’re a type designer. Copyright law automatically protects original font designs once they’re created, but registering your font with the copyright office has additional legal benefits.

Registration establishes a public record of your copyright and lets you seek compensation in case of infringement. To register your font, you must submit an application, provide a copy of your font software, and pay a filing fee to the copyright office. 

Font protection guidelines:

• Securing copyright protection for unique fonts, especially those with distinctive typeface shapes, is essential for legal security.
• Registering the font file with the trademark office may provide additional legal protection for many fonts with distinctive characters, punctuation marks, or potential brand value.
• Consider filing copyright registration for your original fonts and font families to legally protect your designs from unauthorized use.
• Be aware of font law cases related to printer or computer display programs, as these may impact the use and distribution of such fonts.
• Understand that typeface refers to the overall design of letter forms, while the font is the specific style and size of that typeface. Knowing this distinction can help you properly protect your work.
• Remember that trademarked fonts like Palatino and other popular typefaces have specific legal protections you should be aware of to avoid infringement issues.

Font copyright in practice

Using fonts correctly is critical for both designers and businesses. It’s all about staying on the right side of the law and respecting the hard work that goes into creating those awesome typefaces. 

This section will give you the lowdown on legally using fonts in all your projects so you can create cool stuff without any hiccups. We’ll cover everything from picking the right fonts to understanding licenses.

Using fonts in designs and products

Choosing the perfect font for your logo or product is essential, but understanding the legal side is just as important. Copyright issues can pop up if you’re not careful, especially when using fonts on commercial products like print-on-demand items. 

Each font has its own rules about how it can be used, so make sure you know the details before designing. This will help you avoid copyright infringement.

What to keep your eye on:

• Double-check that the font you’re using matches the one listed in your license agreement.
• When you start creating products with Printify, you get access to our Product Creator, which offers countless free fonts to use worry-free.
• To avoid infringement, always ensure that particular fonts used in logo design or product labeling are covered under your licensing agreement.

Violating font licensing terms can lead to legal action from designers or foundries, especially if the font is key to a brand’s visual identity. Ensure the license covers your intended commercial use to avoid costly disputes and respect the creators’ rights.

Best practices for font usage

Follow these guidelines to incorporate fonts confidently into your designs and products, respect the legal rights of type designers, and avoid potential copyright infringement issues.

• Read the license agreement – Always thoroughly review the license agreement for any font you use. Understand the terms regarding commercial use, modifications, and distribution rights.
• Choose the right license – If you plan to use a font for commercial purposes, ensure you have the appropriate commercial license. Don’t assume that a free font is automatically available for commercial use.
• Respect intellectual property – Fonts are the creative works of type designers. Respect their intellectual property by using fonts legally and giving credit when required.
• Maintain records of your licenses – Keep track of all your licenses and their terms for easy reference and to avoid any confusion about usage rights.

Make your fonts come to life with Printify

Make your artistic works come to life – start creating your own designs on custom products and sell them online for profit! Whether you’ve created your own fonts or have proper licensing for fonts you’ve found, you can bring them to life on awesome products from Printify.

Use fonts to create eye-catching merchandise and grow your online business with ease.

FAQ

Conclusion

Fonts are protected by copyright law, and using them without proper licensing can lead to serious consequences. But aside from following the law, it’s important to do the right thing – respect other artists’ work. 

By honoring the intellectual property of type designers and adhering to license agreements, you’ll avoid legal trouble and contribute to a healthier creative community.

Remember – knowledge is power. Educate yourself on the intricacies of font copyright, explore both free and commercial fonts, and prioritize getting the correct licenses for the fonts you wish to use. Getting this info empowers you to make wise decisions, protect your work, and unleash your creativity without fear of legal repercussions.

Make it happen today!

Start designing

When you’ve worked hard to create stunning visuals for your brand, protecting it should be a top priority. That’s where copyright and trademark rights come into play.

This article will show you how to copyright a logo and explain why trademarking your brand helps provide enhanced protection in the marketplace.

What is copyright?

Copyright gives you the exclusive rights to control how your original work is used and shared. 

Once your logo is fixed in a tangible medium (written, recorded, or saved in digital form), you automatically claim copyright ownership. This means you decide who can legally use, reproduce, or display your work.

With digital piracy causing $29.2 billion in losses in the US annually, having this protection is more important than ever. 

While your logo gets automatic copyright protection, registering it through the United States Copyright Office gives you stronger rights to take legal action. As the registered copyright owner, you have more control to stop others from copying or using your work without permission.

What is a trademark?

A trademark protects the unique logos, symbols, names, phrases, or designs that are identifiable to your brand. It safeguards your brand’s identity and recognition.

As a trademark owner, you get exclusive rights to use your logo and other brand elements in commerce, preventing others from using similar logos that might confuse your customers​.

Registering your trademark through the United States Patent and Trademark Office (USPTO) provides nationwide protection. You can also safeguard your brand internationally through the Madrid Protocol.

Trademark vs copyright: What’s the difference?

Both copyright and trademark laws are essential for protecting your intellectual property rights, but they cover different aspects of your brand.

Copyright automatically protects your logo as original artistic work, giving you exclusive rights to reproduce and distribute it. However, copyright doesn’t cover the brand identity linked to your logo.

That’s where trademark law comes in. The trademark status protects identifiable elements of your brand, like your unique logo, designs, or slogans, and prevents others from using anything similar that might confuse customers.

Using copyright and trademark as intellectual property protection for your logo helps safeguard your brand creatively and commercially.

What can you safeguard with copyright protection?

• Artistic works: Logos, paintings, drawings, and photographs that exhibit creativity.
• Literary works: Books, articles, and other written content.
• Musical compositions: Original music and lyrics.
• Audiovisual works: Films, videos, and animations.
• Software code: Original programming and applications.

What can you safeguard with trademark protection?

• Business logo: Unique designs that visually represent your brand.
• Brand name: The name that identifies your products or services.
• Slogans: Catchphrases or taglines associated with your brand.
• Product packaging: Specific designs or shapes that distinguish your products.
• Sounds, scents, and colors: Unique auditory or sensory elements that are strongly linked to your brand identity.

Trademark and copyright symbols

Works protected by copyright or trademark are marked with the following symbols.

	The copyright symbol © signifies that a work is protected by copyright law. It indicates that the creator has exclusive rights to reproduce, distribute, and display their original work. It’s often followed by the year of first publication and the name of the copyright owner, reinforcing their legal claim to the work.
	The registered trademark symbol ® signifies that a trademark has been officially registered with the relevant government authority.
	The trademark symbol indicates that you claim ownership of a word, phrase, logo, or design as a trademark or service mark, even if it hasn’t been officially registered.

Why is it important to copyright and trademark your eCommerce store logo?

Registering both copyright and trademark for your logo comes with great benefits that protect your business and give you peace of mind.

Prevents copycats

Registering for copyright and trademark protection strengthens your ability to stop others from copying or using your logo without permission.

Copyright registration acts as a warning – people are much less likely to imitate legally protected branding elements​.

You’ll have the legal power to sue anyone infringing on your rights and potentially get compensated for any losses​. Without registering, it’s much harder to win these kinds of cases.

Exclusive ownership and protection

With copyright, you own the creative design itself and control its use. A trademark protects the logo as part of your brand identity in the marketplace. This means no one else can legally use something too similar without your approval​.

Solidifies your brand image

A registered copyright and trademark make your business look more professional and trustworthy. It shows that you’re serious about protecting your brand, which attracts more customers and partners​.

How to get a logo copyrighted or trademarked

Copyright only protects original designs, so make sure your logo is distinctive and unique.

Confirm that your logo isn’t already registered by heading to the following sites:

• For copyright: Check the public Copyright Records.
• For trademark: Search the USPTO trademark database.

If all is clear, proceed with the trademark and copyright registration process.

Copyright registration 

1. Register online: Access the US Copyright Office website and log in to the Electronic Copyright Office (eCO) Registration System.
2. Choose application type: Select the Single Application ($45) or the Standard Application ($65), depending on your needs.
3. Complete the form: Provide all the required details about your logo design and select Work of the Visual Arts in the Type of Work section.
4. Submit payment: Pay the filing fees based on your application type. Additional fees may apply for specific cases.
5. Processing time: Expect to wait between 1 to 3.5 months for standard applications and around 6 months or more if additional information is needed​.

Trademark registration

1. File your trademark application: Submit your application online through the trademark electronic application system on the USPTO website.
2. Pay the filing fee: The cost ranges from $250 to $350 per class of goods or services.
3. Processing time: The federal registration process typically takes 12 to 18 months and includes a potential opposition period. 

Note that you must submit a separate application for international protection through the Madrid Protocol.

Enforcing your copyright and trademark rights

Once your registration is complete, it’s up to you to monitor any violations and take action. 

Here are some tips on how to proceed in case of copyright or trademark infringement: 

• Gather evidence: Save screenshots, links, or physical copies of anything showing unauthorized usage of your trademarked logo or design. Note when and where this occurred, and make sure your copyright notice is clearly visible on your work to strengthen your case.
• Contact the infringer: Reach out to whoever is using your work and explain the situation. Politely ask them to stop, as this alone can sometimes resolve the issue.
• Seek professional assistance: If the person doesn’t respond or refuses to resolve the issue, contact an intellectual property or trademark attorney. They can help you decide the next steps, whether it’s sending a formal cease and desist letter or taking legal action in federal court.

What can’t you copyright?

While copyright law covers a variety of original works, not all logos and concepts can be copyrighted. Here’s what falls outside of copyright protection.

Common knowledge

Information that’s widely known can’t be copyrighted. No one can claim ownership of facts such as:

• The Earth orbits the Sun.
• The dates of the Civil War.
• Water boils at 212°F (100°C).

Unfixed work

For something to be copyrighted, it needs to be “fixed” – meaning it has to exist in a tangible medium that people can see, touch, or interact with. Simply having an idea isn’t enough.

For example, if you’ve sketched out several ideas for a logo design, you can’t copyright them until you actually put them on paper or save them digitally. Once your idea is drawn or saved on a computer, it becomes something that can be protected.

Ideas, methods, and systems

Trademark and copyright laws don’t protect ideas, methods, or business processes. These are typically covered by patent law. Examples include:

• Business procedures and models, like print-on-demand.
• Mathematical principles, formulas, or algorithms, such as the Pythagorean theorem.
• Concepts and processes, such as the industrial assembly line.
• Scientific discoveries, like the law of gravity.
• Recipes, such as your family’s casserole.

Names, titles, and slogans

When you create a catchy brand slogan for your business, head straight to the trademark office – copyright protection doesn’t cover slogans, names, and titles.

FAQs

Wrapping up

Knowing how to copyright a logo is crucial for legally protecting your brand’s creative identifier. Create a fantastic logo using original artwork and submit it to the United States Copyright Office through their online portal or by paper application.

Once registered, your original logo will have enhanced copyright protection, confirming your ownership of its creative design.

Remember, while copyright protects the design elements, you should also trademark your logo at the intellectual property office to safeguard your brand’s identity and usage in the marketplace.

Copyright laws are essential for protecting creators’ rights and ensuring that artists can monetize their work without fear of infringement. Understanding these laws is crucial for avoiding legal issues when creating custom t-shirts, as the line between finding inspiration and unintentionally copying someone else’s work can be blurry.

In this guide, we’ll explore the basics of copyright, fair use, and the legal permissions you need to t-shirt design safely.

What is copyright?

Copyright can be defined as a type of intellectual property that includes copyright, patents, and trademarks – the tangible results of creativity. The right to copy simply means that only the owner of a work has the right to monetize and distribute it.

Note that copyright does not include ideas, concepts, rules, or methods of action. It also doesn’t include things that lack a creative spark – names, short phrases, titles, slogans, national symbols, lettering, coloring, and lists of contents or ingredients.

To automatically receive copyright protection, a work must be fixed. Works are fixed when they are captured in a permanent medium and can be reproduced. 

Fixed works include writing a script, taking a photo, composing music, and designing graphics.

Copyright protection usually lasts throughout the author’s lifetime, plus a number of years (usually decades) based on the type of work and method of creation. During this time, copyright protection provides the following exclusive rights to the owner and their authorized parties:

• Reproduction of the work as copies or phonorecords
• Creative derivative works based on the original
• Distribute copies of the work through sale
• Perform or display the work in other media

What is copyright infringement?

Copyright infringement occurs if a third party uses or reproduces copyrighted materials, in other words – someone else’s work – without the copyright holder’s express permission. 

A severe copyright infraction may necessitate a takedown notice or other unpleasant legal issues.

Copyright breach violations occur throughout media, for example, bootlegging movies in theaters, claiming stolen art as your own on social media, and illegally downloading music from a third-party website. 

The severity of the case can involve both civil and criminal penalties:

Civil penalties	Monetary damages ranging from $750 to $30,000 Prosecuted willful infringement costs up to $150,000 per work Costs of lawsuits and attorney fees
Criminal penalties	Criminal fines up to $250,000 per offense Up to five years imprisonment

Consequences of a breach in copyright can include multiple instances of legal problems, takedown notices, fines, and loss of overall business reputation. The extent of the copyright infringement depends on its severity and proof of willful intent.

That being said, not all copyright-protected materials are the same. Some owners might allow or offer exemptions if the third party advertises or comments on their work in a representative light.

Copyright exemptions may include, for example, streaming a video game playthrough, creating derivative fan works, comments, criticisms, parody works, and other methods of respectful engagement. 

In these cases, checking material policies and receiving permission through licensing arrangements is still recommended.

Other intellectual property rights

Let’s briefly mention the other two main instances of intellectual property – how they’re defined and how they differ from other creative material.

• Patents

Patents cover the property rights of original tangible works, from creation processes to machine inventions. Patents provide protections for distinct visual traits, new varieties of works (new technologies and species of cultivated plants), and products of utility – pharmaceuticals, safeguards, systems of operation, and software.

• Trademarks

Trademark law protects words, names, symbols, or devices used in the market trade of goods or services. Trademark protections are mainly made for customers to indicate who made the goods and distinguish them from other manufacturers so as not to mislead the buyer.

How to avoid copyright infringement with t-shirts: Dos and don’ts

Here is an overview. Use this as a quick reference whenever you’re creating t-shirt designs:

Do	Don’t
Research the copyright and trademark laws for your business location.	Use anything copyrighted without a license permitting you to do so.
Create your own graphics through graphic design software or hire a freelancer.	Use any other brand iconography for your own business.
Use public domain and fair use works.	Use quotes that are not in the public domain.
Use design elements that don’t have copyright protections.	Use cartoon characters or any other animated TV figures.
Use royalty-free images through stock libraries if they’re eligible for commercial use.	Use memes containing copyright-protected elements.
Always research images and obtain licensing agreements and permissions from copyright holders.	Use pictures of celebrities taken by anyone but yourself.

Tips for avoiding copyright infringement for a t-shirt design store

Let’s move on to tips for avoiding copyright infringement within the t-shirt design industry. We’ll look at becoming a professional designer without crossing anyone’s intellectual property, and offer advice for limiting legal issues when operating a t-shirt design store.

Research the copyright laws for your business location

Copyright laws aim to protect the owner, but some copyright restrictions can differ country-to-country, depending on the copyright office. 

This is why you should specifically research the laws in your own business location and note the severity of the offense and how likely it is that an infringement may occur.

For a t-shirt printing business in the US, go to the official dedicated copyright government website, under title 17, for any specific legal rules.

For copyright laws in other countries, check the associated material:

• UK copyright government page
• Canadian government copyright laws

Focus on creating original designs from scratch

The best tip that we can give to limit any designers or business owners from mistaken copyright infringement lawsuits is to create your own t-shirt, plain and simple. Avoid derivative work and make original designs that are unique.

This, of course, is easier said than done, but there are platforms and tools, both free and paid, that can reduce your workload, especially for a cash-strapped small business.

Let’s go over some options:

1. Create your own designs using dedicated graphic software that exports high-quality images ready to be printed. Start with the top 11 t-shirt design software.
   Or, check out our list of free Photoshop alternatives to design your own t-shirt graphics without additional expenses.
2. Hire a freelance designer using a third-party platform or the Printify Experts Program. Use websites like Upwork or Fiverr to browse professionals that freelance anything from graphic art to logos and slogans.

Note that even original works are subject to internal website policies that may limit some instances, and would still not classify as infringing on a copyright. 

To run a t-shirt brand with Printify, please familiarize yourself with our policies:

Can any image be printed?

Printify’s Intellectual Property Policy

Look for public domain images and texts

If you’re not the owner of a work, you may still be able to use it. Creative work available to the public for free is considered to be in the public domain. Public domain comes into effect when a copyright license has expired or been revoked.

In other cases, a de facto public domain may exist if copyright law does not apply under the above-mentioned rules. Here are some works in the public domain, free for everyone to use:

• Text of classical literary works like Bram Stoker’s Dracula
• Images produced by NASA or other scientific bodies
• Portraits and historical figures like George Washington
• National symbols and historic iconography like the French fleur-de-lis

Note that while historical or culturally relevant works may be public domain and freely quoted, that doesn’t mean that new derivative works are public domain as well. 

For instance, the animated TV show Castlevania, featuring Dracula, is considered a separate entity and is copyrighted material.

Be careful with non-human generated art

Many law schools are at odds with whether created works by non-human individuals, like a monkey taking a selfie or AI-generated art, can be considered public domain. 

The trend of commercializing non-human art is still being debated, so it’s best to use caution if it’s a niche you’re interested in.

Use design elements not protected by copyright

In the definition of copyright law, some works have historic significance and are not protected or owned. You may freely use these without incurring legal issues. Copyright law does not protect:

• Ideas, facts, and concepts
• Discoveries and principles
• Short titles and slogans
• National symbols like flags or coats-of-arms
• Non-tangible creations like a sketch or exclamation
• Common property works like calendars or the alphabet
• Utilitarian symbols like traffic signs or emergency graphics
• Simple shapes, letters, colors, and their variations

Check if royalty-free images can be used commercially

Royalty-free means that anyone who intends to commercialize an image can do so by paying a small one-time fee without having to pay for each derivation thereafter. 

Some royalty-free images can be completely free, but this isn’t always the case. Either way, the author should still be credited, and you should double-check the policy.

Here are a few free stock image websites that graphic designers can explore to browse and download royalty-free images for commercial use:

• Unsplash
• Freepik (attribution must be added)
• Pexels
• Pixabay

If you have the budget, you can try paid resources like Adobe Stock with a more robust catalog of royalty-free images. Note that images in Adobe Stock marked “editorial use only” cannot be used commercially. You might also need an Extended License to create merchandise for resale purposes.

Shutterstock is another great option for paid, royalty-free images. Printify has partnered with Shutterstock to create a simple-to-use integration through our Product Creator (formerly known as Mockup Generator) software, with images that can be used commercially.

Receive permission from the copyright owner

You can still sell t-shirts with copyrighted images, provided you gain permission from the author. Always maintain decorum and ask for permission before using anything you see on the internet.

You may be able to pay for a potential t-shirt design if you are familiar with the owner of a work, ready to credit them as the artist, and willing to contact them with transparent information about the image’s use. 

If the person agrees, consider creating a licensing agreement.

A copyright licensing agreement provides the licensee with a legally enforceable right to use a work for a designated purpose, time period, and cost. 

You can download a template for a licensing agreement online. Make sure the form has space for the following:

• Payment schedule
• Renewal dates
• License definition
• Exclusivity information
• Explicit use for the creative work
• The names and information of both parties

Start with some research to find out whether you can commercialize a potential t-shirt design. The easiest way is to use an online reverse image search for a photo, checking the earliest upload of the work and finding out who posted it first. From there, contact the individual through any channels available, and consult them on the matter.

T-shirt copyright infringement: What not to do

To start, assume everything is copyrighted. Do not take a random image off Google, expecting to avoid copyright infringement. Be safe, and take stock of some things you should absolutely avoid.

Don’t use branded logos

Using exclusive branded staples like the Nike logo is a no-go. Creating bootleg or inspired brand iconography is a surefire way to alienate your customers and get hit with a hefty lawsuit.

Don’t reverse, distort, layer, color code, or otherwise manipulate a brand, thinking it’s enough to count as an original. Cutting corners will decrease the value of your own brand and put you in second place by default.

Don’t use quotes

If speech has been recorded, placed in writing, used as a slogan, or repeated in online public discourse, do not use it as a text quote for your t-shirt. Except for public domain quotes, when a work is fixed in a tangible form, you cannot use it commercially.

Don’t use branded fonts

You might see a lot of reviewers or fan-made merchandise use the font from the originally created work. It’s familiar and easily recognizable, but that’s also what makes it a copyright infringement liability. For instance, don’t use the Stranger Things title case or the Star Wars intro roll to design t-shirt graphics.

Don’t use cartoons

Make a clear difference between any syndicated animation stars, comic strips, or mascots. Don’t use cartoons with implicit nods to existing media in your custom t-shirt designs unless they’ve entered the public domain, like the original Winnie the Pooh.

Don’t use memes

While it might seem that a picture plastered and circulated throughout the internet would be completely fair use, memes aren’t as big of a trend and money-making scheme as they may seem.

When it comes to commercializing, many memes are already taken from other media and fall under protected copyright law, whether it’s another still from SpongeBob or a character from one of Vince Gilligan’s syndicated tv-shows.

Don’t use pictures of celebrities

You’d think that pictures of celebrities are a bad idea due to celebrities and their high-ticket defamation cases. Still, the actual worry in your t-shirt design comes from the person who took the photo. They are generally the rights holders.

Conclusions

Let’s end with some free legal advice. Copyright law is easy if you follow your own vision and create a t-shirt business that’s original and unique. Copyright is hard if you stray the lines, cut corners, and try to make exceptions.

Search engines and creative commons are your friends. Find inspiration online by crediting and working with an artist or owner, playing with facts and ideas, and not using graphic elements of a different t-shirt designer.

Lastly, find free graphic design ideas through Printify. Try your hand at creating custom t-shirts through our easy-to-use design tools and free-to-use graphics library – collected and sourced to make your t-shirt design business run smoothly.

Intellectual property: Copyright, trademark, and patent

Intellectual property refers to creations of your mind. It ranges from inventions and artistic works to logos, names, and images.

Much like the house you live in, this type of property carries legal protection.

Copyright, trademark, and patent are types of intellectual property you’re most likely to encounter as an Etsy seller.

• Copyright is the legal protection given to a creator’s original work – from art, designs, and photographs to music, film, and written content.

Copyright gives the intellectual property owner exclusive rights to reproduce, distribute, and display their work to others.

• Trademark protects the use of a company’s name, along with all of its associated products. It protects brand identity, logos, and slogans.

This means publishing Disney art without permission from the intellectual property owner will likely get your entire shop suspended and may even result in legal action.

• A Patent gives the right to exclude others from using, making, or selling an invention for a set period of time.

Make sure that none of the goods you sell have patent protection to avoid an infringement report being filed against you.

Intellectual property rights are an important factor to consider, no matter whether you use your own original work, fan art, AI art, or images from the public domain in your store listings.

It’s especially important if you plan to list someone else’s work on your online store.

What is intellectual property infringement?

It’s the violation of intellectual property rights.

As an Etsy seller, you’ll encounter intellectual property infringement if you use someone else’s intellectual property without first obtaining permission from the owner or if you report someone else’s violations.

Once you open a store on Etsy, you agree to their Intellectual Property Policy. These guidelines explain the handling of infringement allegations, how to report violations, and ways to respond to an intellectual infringement notice your shop has received.

You’re responsible for making sure the content you post doesn’t infringe on someone else’s intellectual property rights – understanding and respecting Etsy’s policies is vital to guarantee a fair and creative marketplace for yourself and other Etsy sellers.

How does Etsy deal with copyright infringement?

As one of the leading online marketplaces worldwide, Etsy acts as a platform connecting 7.47 million active sellers to around 92 million buyers.

Etsy places significant emphasis on combating violations of copyright and other intellectual property rights to safeguard the rights of all Etsy sellers.

They provide tools for reporting copyright infringement in accordance with the copyright law, also known as the Digital Millennium Copyright Act, and take appropriate action against all infringing sellers.

Note that committing copyright infringement can lead to legal action and penalties on this platform, including removing your store listings and even account suspension.

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How to avoid copyright infringement on Etsy?

Understand intellectual property laws

Intellectual property laws give the creator exclusive rights to reproduce, distribute, and display the works they’ve created.

Familiarize yourself with the types of intellectual property you’ll encounter on Etsy to know what is protected and how to respect the rights of others.

It’s also important to stay updated on any relevant intellectual property law changes that may impact you as a business owner.

What happens if you receive an Etsy copyright infringement notice?

No matter the case – be sure to take it seriously and follow Etsy’s resolution guidelines with care.

Etsy will investigate all alleged infringement reports submitted through the Etsy Reporting Portal or otherwise, which could result in various measures being taken against your store.

At Etsy’s discretion, both your product listings and store account could be removed from the platform.

For these reasons, it’s essential to follow Etsy’s Intellectual Property Policy and fully cooperate with Etsy’s investigation process.

How many copyright infringement notices can I get on Etsy?

Etsy doesn’t list a specific number of copyright infringement notices that can lead to penalties, but if you receive repeated or multiple notices of intellectual property infringement, your selling privileges may be terminated.

If you receive a copyright infringement notice that leads to an account suspension, you will also have trouble opening up a new store on Etsy.

What’s more – this policy extends to any stores that are suspected to be connected to accounts that have or are committing copyright infringement.Keep in mind that Etsy reserves the right to close any accounts without advance notice and for any reason.

What to do if Etsy suspended your account or removed your listing?

Review the intellectual property infringement notice you received and understand the reason for this action.

Follow Etsy’s instructions to resolve the issue and provide any necessary documentation or evidence that supports your case.

If you’re in the US, you can file a counter-notice on any intellectual property infringement claims:

• Submit a counter-notice. Prepare a notice following Etsy’s DMCA Counter-Notice guidelines. Etsy will share a copy of it with the original complainer.
• Wait. Etsy will process your counter notice and might restore the removed content or access within ten business days.
  Note that this estimate might change if the copyright owner takes legal action to stop you from relisting your products.

How to report copyright infringement on Etsy?

Etsy lists clear requirements for submitting Digital Millennium Copyright Act reports or counter notices for infringement reports based in the US.

Alternatively, use the Etsy Reporting Portal to:

• Register your brand to see all of your intellectual property rights and associated reports.
• Use keyword search to go through millions of listings and compile your findings on copyrighted or trademarked material.
• Report violations of intellectual property for Etsy’s dedicated support team to investigate the alleged infringement, providing details on:
  • Your information. List your full name, address, and contact information.
  • Intellectual property. Select the violation type – copyright, trademark, patent infringement, counterfeit goods, or other – and provide details on ownership.
  • Infringing materials. Select the material type – shop name, listing, username, or video from a shop or an Explore post – and provide an example.
  • Authorization. Agree to Etsy’s terms and sign the report with your name.

Make sure to provide accurate and detailed information to assist Etsy in their investigation of any alleged infringement.

How to safely and legally run an Etsy shop with Print on Demand?

Selling customized products on Etsy might seem like a sure way to open a Pandora’s box, but with careful planning, a firm grasp of legal requirements, and a commitment to originality – your path to success will be smooth and rewarding.

Join the ranks of many Etsy sellers who sell with Print on Demand

Aside from choosing the right keywords, the answer to standing out on Etsy is to offer unique and original products.

Set aside some time to generate creative ideas and designs that reflect your brand values and resonate with your target audience.

Etsy copyright infringement: A summary

One thing is clear – breaking copyright laws really isn’t worth the hassle and legal issues it can create for your business.

Instead of committing intellectual property infringement, create original designs or use licensed content and obtain proper permissions from intellectual property owners before you post third-party designs on your store.

Elevate your Etsy journey through the power of knowledge and report infringement on the Etsy Reporting Portal.Embrace the freedom to create with the help of Printify and watch your shop flourish in a community that celebrates uniqueness.

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All successful businesses expand. But with that desirable growth comes the reality of international legal compliance. As your orders cross various borders, they will be subject to the value-added taxation of that country. 

The purpose of this article is to help merchants understand the recent legislative changes to value-added tax (VAT) in the EU and the tools we’ve presented for the situation. 

In short, starting October 1, 2021, Printify is charging VAT on orders in the European Union, Norway, and the United Kingdom. At the same time, we’re streamlining legal responsibilities, speeding up order transit, and providing necessary information for merchants to reclaim VAT expenses.

Please note that this article is not meant to serve as tax, legal, or accounting advice, instead it has been prepared for informational purposes. We recommend consulting your own tax, legal, and accounting advisors before acting. 

Meanwhile, we have partnered with VAT experts to help clarify questions on print-on-demand eCommerce in Europe, and help set up VAT registration and reporting.

1. What is VAT?

These are regulatory measures applied on transactions, tilted toward balancing the global economy. These tariffs also generate income streams for publicly beneficial purposes. 

A value-added tax is a transactional tax charged on the sale of goods and services – often between 5-27% of an order’s total cost. This system has been adopted by over 115 countries, providing a common framework for invoicing, registration, and other aspects of international business. 

As this tax is applicable at each stage of an order’s production, it is applied relative to the net value of the value of goods sold within producing countries – taking into account local tax rates. Generally speaking, all goods and services moving across borders or sold locally are subject to VAT.

All products within the Printify catalog are subject to VAT. This includes sample orders and items purchased without the intention of resale.

2. How is VAT different from USA sales tax?

VAT and sales tax are really just different sides of the same regulative coin in different parts of the world. 

In America, sales tax is primarily applied to the sale of goods. However, these measures are distributed unequally by state and local governing bodies with significant degrees of immunity for various parties. Read more about Printify and US sales tax on our blog here.

In contrast, originally invented in Europe, VAT is almost universally applied to all goods and services.

3. Are VAT rates equal in all European Union jurisdictions?

No. VAT rates are different between each country. However, the VAT rules are harmonized under the European Directive. For more information, please see EU VAT regulations. 

4. How is VAT calculated and charged?

The answer to this question depends on what country the order is created in, where it is shipped to, and the VAT ID used in that transaction. Concrete examples are provided at the end of this article, but let’s break down the factors first:

5. What are the one-stop-shop (OSS) And import-one-stop-shop (IOSS) Systems?

Print-on-demand merchants constantly move orders across borders. Before OSS and IOSS, it was necessary to manage several legal processes within each country an order traveled between. But with the introduction of OSS and IOSS systems in July 2021, everything is streamlined by a single (one-stop) registration, avoiding a lot of paperwork. 

6. Do I have to charge VAT to my customers?

Generally speaking, goods and services moving are subject to some form of taxation – particularly when crossing borders. So, when one of your orders travels, it will likely incur some form of VAT (in the EU), sales tax (in America), or other tariffs. Things can become much easier to manage under the OSS or IOSS systems. 

Keep in mind that all goods on Printify catalog are taxable in Europe. If you have questions about your registration obligations, we suggest you consult a tax advisor.

7. How to prepare for VAT collection on Printify?

The whole process can be broken into four stages:

1. Submit your VAT ID(s) on your Printify account – here’s our Help Center article on how to do it,
2. The VAT on your orders will be charged based on your provided VAT ID,
3. On a regular basis, receive and review your VAT invoices from Printify orders,
4. Submit the necessary documentation to tax authorities and include your VAT invoices to reclaim your tax returns.

8. How to set up VAT collection on my sales platform?

• Shopify
  Learn more (EU)
  Learn more (UK)
• Etsy
  Learn more
• WooCommerce
  Learn more
• eBay
  Learn more
• BigCommerce
  Learn more 
• Wix
  Learn more
• PrestaShop
  Learn more
• Printify API

9. Examples of VAT calculation

We know that taxation in general is a complex subject. To help you better understand it, we have prepared a table containing the main principles of tax calculation in Europe along with some illustrative examples. 

Keep in mind that there are three main variables dictating which VAT rate will be applied to a specific order: ship-from country (print provider’s location), ship-to country (your customer’s location), and your VAT ID (country where you have registered for VAT collection purposes).

Ship-from → Ship-to	Are you registered for VAT in Europe?	VAT rate	Example
EU → EU	Yes You have the ship-from country VAT ID	Ship-from country rate	T-shirt, USD 10, DE → IE. DE 19% VAT is charged. Merchant pays USD 11.90 and can claim back VAT USD 1.90 in DE. Final cost is USD 10.
EU → EU	Yes You have any other EU country VAT ID	0% VAT rate	T-shirt, USD 10, DE → IE. 0% VAT is charged. Merchant pays USD 10. Final cost is USD 10.
EU → EU	No	Ship-to country rate	T-shirt, USD 10, DE → IE. IE 23% VAT is charged. Merchant pays USD 12.30. Final cost is USD 12.30.
EU → EU (within the same country)	Irrelevant	Ship-to country rate	T-shirt, USD 10, DE → DE. DE 19% VAT is charged. Merchant pays USD 11.90. If registered in DE, can claim back VAT USD 1.90 in DE and final cost is USD 10. If not registered in DE, final cost is USD 11.90.
Rest of the world → EU	Irrelevant	Ship-to country rate	T-shirt, USD 10, US → IE. IE VAT 23% is charged. Merchant pays USD 12.30.
Any country → the UK	Irrelevant	Ship-to country rate	T-shirt, USD 10, PL → UK. UK VAT 20% is charged. Merchant pays USD 12.00.
Any country → Norway	Irrelevant	Ship-to country rate	T-shirt, USD 10, PL → NO. Norwegian VAT 25% is charged. Merchant pays USD 12.50.

10. Where can I get tax advice?

Keep in mind that Printify does not provide legal, tax, or compliance advice. Instead, we strongly encourage you to reach out to licensed tax consultants. Printify merchants will also receive a reduced registration fee, read more here.

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While we are not tax consultants or CPAs, in this article, we try to help you understand sales tax for your business and your peace of mind.

They say the two things guaranteed in life are death and taxes. That is why every year, like clockwork, tax filing finds us and sends us all into a minor panic. But we have good news for you: since October 2020, Printify has been applying sales tax to the states where we are registered to collect. It doesn’t mean you are no longer required to collect taxes in the states you have sales tax nexus, but you don’t have to worry about sales tax compliance in other US-based destinations.

We have also outlined essential information about sales tax in this article. We partnered with the experts at TaxJar for more resources. You will no longer need to waste hours scouring the internet, trying to figure out sales tax. While we recommend a tax expert for specialized sales tax advice, we hope this article gets you one step closer to understand sales tax and closer to some well-deserved peace of mind.

What is sales tax?

A tax is a percentage of the sales price of an item put in place by the government to be remitted whenever the item is sold. The tax collected is then used for public facilities and services such as schools, hospitals, public infrastructure, etc. Sales tax is a percentage collected on retail purchases by the seller and remitted to the state government. Unlike federal taxes, the sales tax is governed by each state, making their laws to collect it, which may differ from one state to another.

Sales tax is also known as the “pass-through tax” because even though a business charges sales tax, they don’t keep it. The business is required to collect it and remit it, “pass it through” to the relevant state government. Sales tax is a consumption tax, which means it is only charged when the end consumer buys goods or services.

It is important to remember that sales tax is not profitable, it is the law, and getting your business sales tax right is necessary. Sales tax is based on economic and physical nexus in certain states. Nexus rules apply both to Printify selling to merchants, as well as merchants making sales to the final consumers*.

The POD platform business model operates through two distinct transactions. The first transaction occurs between Printify and the merchant, where we sell the ordered products to the merchant. The second transaction takes place when the merchant sells products to their customers, and it becomes their responsibility to handle taxes based on their nexus and other applicable requirements. In the United States, the place of taxation is determined by the location of the purchase, specifically the states where the merchant’s customers are located and where the products are delivered.

How do you qualify for sales tax?

Nexus 

What is a sales tax nexus? This is when you have a physical presence or a substantial connection to a state that requires you to comply with their tax laws. You need to collect sales tax from sales in a state where you have sales tax nexus.

How do you get nexus with a state?

You may acquire sales tax nexus if you qualify for any of these four factors:

• Physical presence: Your location may create a sales tax nexus. This includes formal and informal retail premises such as a brick-and-mortar store, an office, a home office, a garage, or even your kitchen table if you conduct business from there.

• Your business employees: You may create nexus if you have hired professionals, such as salespeople, or social media consultants for your business. This includes employees working remotely, who may be in different states, and create nexus there. In some states, affiliates (indirect services) may also give you sales tax nexus.

• Your business warehouse/storage: Where you store your inventory may also give you nexus. This means if most of your inventory is stored by your Print Provider in a particular state, such as California, you may have nexus in the state. Note that Print on Demand from a Print Provider’s fulfillment center does not give you nexus.

• Economic nexus: If you make enough sales in dollars or transactions that meet the requirements of a particular state, you may have economic nexus in that state. The tricky part about economic nexus is that it is determined by individual states and may differ from one state to another. Economic nexus is the primary reason Printify is required to collect sales tax.

Where is Printify registered to collect and remit sales tax?

Printify is required by law to collect sales tax in states where we have nexus, on sales (including costs associated with shipping) to our merchants. Below is a map showing all the states where Printify is registered for sales tax purposes and therefore collects and remits sales tax. Find additional information on state and local sales taxes.

How will Printify charge sales tax, and how will it be calculated?

1. Based on your customer’s destination (ZIP code) – Printify uses your customer’s shipping address to calculate sales taxes.
Please note that Printify collects sales taxes for the specific states that we are registered for in the USA, including orders for international sellers where the destination is within the USA.

2. Based on orders coming in from specific sales channels or API – Printify calculates and collects sales taxes based on resale certificates provided by the merchant.

3. For all sample orders – the sales tax is displayed at checkout and collected by Printify. The tax is also based on the resale certificates you, as the seller, have provided.

How to register and collect sales tax?

Register for collecting sales tax (sales permits): You cannot collect sales tax without a sales tax permit. Once you’ve determined that you have nexus with a state, the next step should be to register for a sales tax permit with the state to start collecting sales tax. 

How to get a resale certificate after you have registered for collecting sales tax?

Apply for a resale certificate

As a Printify seller, we recommend requesting a resale certificate from state authorities. Alternatively, if you’re already registered for the tax/sales permit in your state/multiple states, preparing MTC or SSTGB certificates on your own following the comprehensive guide we have put together here.

A resale certificate (also known as a sales tax exemption certificate) is different from a sales tax permit as it allows you to buy products without paying sales tax on our end if you plan to resell them and collect the sales tax through your business. This means that Printify will not collect sales tax from you.

How do I set up sales tax through my sales channel?

Some states in the US have made laws that require online marketplaces to collect and remit sales taxes on behalf of their third-party seller transactions. This means any sales you make via these marketplaces will be taxed for you automatically. Unless you have nexus in these states, you will not be required to do any additional remitting.

However, if you have nexus in these states, you will be required to file a “Zero tax return” or register for a non-reporting sales tax status. Additionally, it is advisable to keep a sales tax permit in states where you have nexus as the marketplaces only remit the taxes for sales made through the marketplace. We advise that you reach out to sales channel representatives or tax consultants for the appropriate information and setup.

How to file a return for sales tax

If you are registered for sales tax purposes and collect sales tax, you are required to file a return that indicates how much sales tax you have collected and remitted. Follow the guidelines on the TaxJar map to file a return for each state. TaxJar connects all marketplaces you sell and then creates return-ready tax reports in the manner in which a state wants to receive it. If you are tax registered, you are required to file a sales tax return whenever you have a filing due, even if you did not collect any sales tax to avoid penalties.

So, what should you do about the sales taxes?

Now, when you hopefully understand the theoretical part about sales tax a bit better, what does it all mean in practice, and what should be your next steps?

1. Check if/where you have a sales tax nexus.
2. If you have nexus, we recommend consulting a sales tax advisor but the steps will most likely include:
   • Choosing and setting up a tool for tax calculation and collection;
   • Applying for a sales tax permit for each state you have nexus in;
   • Submitting a resale certificate for each state you charge sales tax in – to purchase products without paying sales tax if you plan to resell them. This means that Printify won’t charge sales tax in those states;
   • If you collect taxes, you will also need to report and remit them, thus, use your chosen tool for tax reporting and follow their guidelines.
3. If you don’t have nexus and haven’t uploaded a valid resale certificate, Printify will charge sales tax on your item and shipping cost for orders shipped to states where Printify is registered. No other actions needed.

Examples for tax calculation

To make sales tax easier to digest, we have prepared a few examples of tax calculations depending on the product category, sales channel, merchant documentation, and order destination. 

Examples are calculated in accordance with sales tax rates and regulations on August 18, 2020.

For easy comparison, we picked examples of orders with a single item going for the same cost at $20 and shipping cost at $10.

All sales tax calculations are performed by licensed tax automation software that considers all relevant information and state-specific rates and exemptions. Please, note that for orders going to California, the sales tax is calculated based on the final retail price, not item cost.

Where can I get sales tax advice?

We at Printify are not tax experts or specialists and cannot give you any tax or legal advice. We strongly recommend you consult a tax specialist or CPA to get information on sales tax and regulations. That is why we have partnered with the specialists at TaxJar:

TaxJar is a leading technology for eCommerce businesses to manage sales tax. TaxJar features tools that make eCommerce easier for everyone by helping merchants spend time on their business and not sales tax.

• All of your sales tax data in one place: TaxJar instantly prepares your state return-ready reports from all of the places you sell, with one-click integrations with the top platforms, services, and marketplaces. See it all in one place.
• Seamless and automatic filing: With AutoFile, your tax forms will be automatically submitted when they are due. Never miss a deadline again.
• Real-time sales tax rates and calculations: Upgrade to TaxJar Professional, and the TaxJar API will instantly provide accurate sales tax rates at checkout.

If you would like to learn more in-depth information on sales tax, here’s an Online Seller’s Guide to eCommerce Sales Tax.

A nonprofit explained

A nonprofit organization, or NPO – as the name suggests, is an organization that reinvests its surplus funds back into its mission instead of distributing it to shareholders.

The ultimate goal of an NPO is not to generate income but to impact societal change.

To fulfill these noble missions – nonprofits need funding. Money is often a critical resource for nonprofits, covering operating expenses and driving the ability to take action directly related to goals the NPO sets.

Finding stable ways to generate income to cover these expenses while also trying to raise money for fundraising activities is difficult. Even so, you’re up for the challenge and motivated that your efforts will pay off in the long run. 

That said, balancing your income-generating activities is vital for maintaining tax-exempt status. If you haven’t done this yet, don’t worry, we’ll cover that in a bit.

As we dive deeper into this topic, we’ll also explore how selling products can serve as an effective unrelated business income strategy for NPOs to generate funds while staying true to their mission.

Unrelated business income tax and other regulations

In the United States, the Internal Revenue Service determines your NPO’s validity and tax status.

For an NPO to qualify as a government-recognized and tax-exempt organization, you must meet the conditions set out by Section 501(c)(3) of the Internal Revenue Code.

The NPO qualifications are as follows:

• Created for charitable, scientific, religious, literary, or educational purposes.
• Not created for the benefit of any individual or private interests.
• Has a democratically-elected governing body.
• Has bylaws in place that state its purpose and an overview of how it will be run.

If you register as an NPO in the US and meet all IRS requirements, you’ll receive tax-exempt status, freeing you from the federal and state corporate tax rate.

Despite your organization’s exemption, when your nonprofit sells goods or services that aren’t directly related to your mission, you may have to deal with unrelated business income tax.

For example, suppose a nonprofit organization dedicated to finding homes for street cats starts selling t-shirts. In that case, the income from these sales might be considered unrelated to the organization’s primary mission, subjecting it to the unrelated business income tax.

Even though NPOs have a tax exemption, you’ll need to file form 990-T if you generate $1,000 gross income from unrelated business activities. You’ll also need to pay the estimated tax if you anticipate your tax for the year to reach or go over $500.

Unrelated business income regulations and tax exemption requirements may vary in other countries. It’s essential to understand the rules in your country of operation to be sure that the nonprofit meets all the legal requirements in your income-generating activities.

These regulations may focus on your NPO’s creation, governance, and purpose, similar to those set out by the IRS in the US.

Selling products with a tax-exempt status

Selling nonprofit merchandise could be a profitable side hustle for your NPO.

An online merchandise store for nonprofits can turn into a valuable revenue stream that supports your mission, aids the nonprofit’s sustainability, and further amplifies the positive impact your organization has on society.

While the unrelated business income tax is something to watch out for, it doesn’t mean that nonprofit organizations should shy away from selling products. Instead, it highlights the need for preparation – from careful planning to scheduling a consultation with a tax professional.

Benefits of selling custom merchandise for an NPO

Selling custom merchandise as an NPO with a tax-exempt status offers substantial benefits that could transform your whole operation.

Let’s go over some key advantages for nonprofit organizations to consider before gaining unrelated business income on eCommerce platforms.

Generate income

Many nonprofits struggle with generating income on a tax-free basis and maintaining steady financial backing to carry out all of the activities to reach their goals.

Income-generating activities like a one-week fundraising effort can bring in significant sums of money. Still, these are generally short-term campaigns that often require a lot of resources to organize and don’t guarantee long-term NPO sustainability.

Alternatively, selling custom merchandise can help you makemore money, reach new audiences, and support your initiatives. It also reduces your reliance on generating income from large one-time donations or grants.

Increase brand awareness

Custom merch is not only great to sell, but it’s also a powerful branding tool that will help spread awareness of your organization and its mission.

• Advertise your retail store on social media platforms. Consider using high-quality product photos, compelling descriptions, and clear calls to action in your posts. 
• Boost your reach by encouraging your followers to share posts and photos wearing or using your merch. 

Having your supporters wear t-shirts or hoodies with your logo has a high potential to attract new backers and loyal supporters to your NPO.

Provide an outlet for supporters

Not everyone has funds or time to donate, even if they support your cause. By offering everyday necessities like t-shirts, coffee mugs, or totes, you provide a tangible way for people to support your organization’s mission.

Each purchase offers financial gain for your organization while helping your supporters feel closer to the cause.

By providing a simple way to support your nonprofit, you’ll likely engage more people, broadening your audience and creating lasting relationships with those who believe in your mission.

Selling merch is an inclusive strategy that enables others to make a difference with their purchases while increasing your revenue.

Create additional revenue streams for your nonprofit with Printify

Thanks to print-on-demand services like Printify, selling products has never been an easier income-generating activity for nonprofit organizations.

Create custom items and generate product sales with ease by setting up your eCommerce store with Printify.

Sign up

It only takes a few minutes to create a Printify account, but it opens up a whole world of opportunities to generate income for your NPO. Register an email address and password, or use your Gmail account to sign in.

Once you’ve signed up, you’ll be taken to your Printify dashboard. From there, navigate to the user icon in the top right to My account. Add your business information and billing address, then go to Payments to add a payment method.

Find products

Browse our Product Catalog to find the best products for your target audience.

It’s not just t-shirts. Our selection ranges from apparel and accessories to home decor and electronics with over 850 customizable products, ready to be branded with your NPO logo.

Once you’ve found a product you’d like to add to your store, open the product page and click Start Designing.

Start designing

Upload your own designs or create new ones with our beginner-friendly Product Creator (formerly known as Mockup Generator). We offer free design tools and graphics, which you can use and adjust to your liking. 

If you don’t feel like designing, take a look at our integration with Shutterstock to find high-quality premade designs to use on your NPO merch.

You can even hire an expert in graphic design to prepare visuals for your products, website, or fundraising campaigns.

Connect your store

Choose a sales channel that best aligns with your NPO. Printify integrates seamlessly with some of the most popular eCommerce platforms and marketplaces, including Shopify, WooCommerce, Etsy, and eBay – see our complete list of automated integrations.

Once your online store is up and running – manage your products, and monitor sales while Printify takes care of the printing and shipping.

What to know when selling products

Selling products as a nonprofit will require a bit of groundwork, but it comes with substantial perks.

Customized merch enables you to provide a steady stream of income and increase brand visibility for your NPO. Most importantly, it offers supporters a tangible way to contribute to your cause.

Follow these steps for a smooth journey into the world of customized merch:

1. Find products that align with your NPO’s mission.
   Don’t sell plastic balloons if your goal is to save the planet.
2. Find your target audience.
   Learn who your supporters are and what they would be interested in buying.
3. Order product samples.
   Although our products are of high quality, it’s best to make sure you’re happy with them first before selling them.  
4. Sell your merchandise.
   Come up with a marketing plan to successfully sell your merch on social media or other eCommerce platforms.
5. Track and adjust.
   Monitor your sales, track what items are popular, and use this data to refine your product selection.

In conclusion

Can nonprofits sell merchandise? Absolutely. But you’ll need to prepare – go over the necessary tax regulations to make sure you raise funds in accordance with the law.

With careful planning and Printify at your disposal, you can turn an idea into a reliable source of funds, fueling your organization’s mission.

Increase your NPO’s visibility today!

Start selling

Even with high competition, Etsy maintains a massive share of the online marketplace, attracting 94.1 million users and hosting 7.3 million sellers in Q3 2022. 

Every detail matters when it comes to making your store stand out from competitors, from marketing strategies to tweaking your Etsy shop policies.

Let’s take a look at what’s changed in Etsy’s policies and how to adjust them.

Why write Etsy shop policies?

Etsy shop policies are optional, at least officially. 

If you’re an EU-based seller or sell to EU buyers, it’s important to comply with the general data protection regulation (GDPR) and have a privacy policy. While Etsy doesn’t demand it, they do recommend that all sellers create a privacy policy, as many other countries have similar data protection laws.

Users with a registered business benefit by having written policies. By establishing shop policies, you can address potential issues like returns and cancellations in advance. These policies ensure that you and your customers are protected and on the same page.  

From a marketing perspective, shops with clear policies have an advantage over sellers without them, improving trust and underscoring the business’s credibility and professionalism. If important information is missing in a product listing or there’s unclear information about privacy or customs, it can affect buyers purchasing decisions.

Business requirements vary according to country and state. After your Etsy shop returns a consistent profit, your regulatory authorities may require a license. Also, depending on your business plan, policies on privacy may be necessary. 

The IRS gives nine questions to help you identify an activity as a hobby or a business. 

Do you need a business license to sell on Etsy? Learn more about that in our blog article.

Why write Etsy shop policies?

First, it’s necessary to differentiate between Etsy policies for sellers and stores.

The Etsy Seller Policy is a set of rules that every seller, whether an individual or a business, must agree to and abide by when opening a shop.

The updated seller policy from December 2022 states what can and can’t be sold, service level standards, forbidden content (such as hateful or derogatory language), privacy, communication standards, and Etsy’s Purchase Protection program for sellers.

Sellers’ policies evidently can’t be changed – customers and sellers comply with them or can be banned from the platform.

Etsy store policies are rules sellers create to run their businesses and handle potential issues with buyers (more on buyers’ rights in the FAQ section). 

That includes, for instance, informing beforehand if the shop accepts returns for certain goods, cancellations, and other elements like privacy protection, estimated delivery dates, and customs taxes. 

Sellers can customize these policies and should write them in detail before setting up their shop. However, Etsy automates many of these policies, offering pre-set options to sellers. 

This helps prevent, for instance, buyers from questioning the existence of a policy or its specific terms, as the platform provides a set of predetermined options. 

How to edit shop policies on Etsy

To edit Etsy shop policies, use a web browser on a laptop or mobile. Adding or editing them using the Etsy Seller app is not possible. 

To edit them, go to Etsy and open the Shop Manager at the top right-hand menu. 

Select Settings at the bottom of the left-hand menu.

Click Policy Settings and choose the tabs with the policies you want to edit – Returns & Exchanges, Cancellations, Privacy, or Fixed.

FAQ

Wrapping up

Clear Etsy shop policies increase credibility and make communication with customers easier. With the last updates, Etsy has made creating policies simple and straightforward. 

Make sure your Etsy shop keeps the highest standards with up-to-date policies. And count on Printify to take your shop to the next level!

Make it happen today!

Start selling

Types of sales taxes in Canada

There are two types of sales taxes in Canada. One is levied by the provinces, and the other is charged by the federal government.

These can be broken down into four separate sales taxes, and that’s how they appear in our Canadian invoices. There’s the Goods and Services Tax (GST), the Harmonized Sales Tax (HST), the Provincial Sales Tax (PST), and the Quebec Sales Tax (QST).

Some provinces charge only the federal tax (GST/HST), while others have specific tax rates established on the provincial level.

How do Canadian sales taxes compare to the US sales tax and VAT in Europe?

Canada uses a mix of European-style value-added taxes and US-style sales taxes.

The GST and HST levied at the federal level and the QST charged by Quebec are all VAT-type taxes. They apply to most sales of goods and services regardless of whether the recipient is registered as a taxable business or not. Tax-registered businesses can reclaim these three types of taxes if the purchased goods are used for resale or other business purposes.

In contrast, the PST levied by British Columbia, Manitoba, and Saskatchewan is similar to the US sales tax and is paid by end consumers. Local businesses purchasing goods are exempt from PST provided they submit proof of their PST registration to Printify.

Make it happen today!

Start selling

How are Canadian sales taxes calculated and charged?

Starting April 2022, Printify will automatically include tax on all Canadian orders, based on Canada’s tax policies. In Canada, sales taxes are charged on both federal and provincial levels. The sales tax will differ depending on the province your product is shipped to.

Canada invoice summary

You can view your invoices by going to the Payments section of your profile and selecting Invoices. You’ll see the Canadian flag on your Canadian invoices. There are separate invoices for sales made within Canada and for imports into Canada. We currently offer monthly invoice summaries.

Like all other summaries, the Canada invoice summary consists of a summary page and a details page. You can find more information about the invoice summary in our help center article.

How can merchants get an exemption?

Printify can allow an exemption from the Provincial Sales Tax for merchants in British Columbia, Manitoba, and Saskatchewan. If you’re a registered taxpayer in one of these provinces, you can give us your tax registration details and receive an exemption. Learn more in the article on how to become exempt from Provincial Sales Tax.

When it comes to HST, GST, and QST, these are VAT-type taxes, and merchants cannot be exempt. You can reclaim these taxes via tax returns if you’re a registered taxpayer.

Where can I get tax advice?

Keep in mind that Printify does not provide legal, tax, or compliance advice. If you’re not sure whether you need to register for any taxes in Canada, please consult a professional tax advisor for the best solution for you and your business.

Disclaimer: We strongly recommend you consult a tax specialist or CPA to get advice on sales tax and regulations.

Make it happen today!

Start selling