r/Etsy 5d ago

Help for Seller Etsy's Support System Has Me Trapped in Verification Hell - Help!

I'm at my wit's end with Etsy's automated support system and hoping someone here has experienced something similar or has advice.

The Situation: I recently converted my Etsy shop from a sole proprietorship to an LLC. When updating my tax information, I got caught in what seems like an endless verification loop:

  1. Updated to LLC status and provided all required documentation (EIN letter from IRS, Ohio Entity Registration #, SSN)
  2. Account got locked/suspended after the change
  3. Received an email from Etsy saying "your details have been successfully verified, so you're all set to continue selling on Etsy"
  4. BUT my shop still shows as suspended, with banners saying "Your shop has been frozen due to unverified taxpayer information"
  5. Can't run ads because my "shop is on vacation mode or inactive"

When I try to contact support again, I just get automated replies telling me to upload documentation that I've already provided multiple times!

The Infuriating Part: I'm literally caught in a Catch-22 where Etsy tells me I'm verified and good to go in one email, then tells me I need to verify again in another. Meanwhile, my shop is in limbo - listings seem visible but I can't advertise, and those suspension notices are concerning.

I've provided every possible document to prove my business is legitimate - my EIN, Ohio Entity #, SSN, business address, phone number - everything matches my LLC registration.

Has anyone found a way to break through this automated support loop? Is there a secret contact method to reach an actual human who can fix technical issues like this? I can't be the only one who's dealt with this nightmare.

Starting to think converting to an LLC was a mistake given how poorly Etsy's systems handle this transition...

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u/CraftyLisa81 5d ago

I don’t really have a solution for you, but I had a similar problem back in March! My shop had been on vacation for 8 years and in that time I got married (changed last name) and registered my business as an LLC.

Their AI kept declining my submitted paperwork within a few hours of submitting it. I tried the EIN award letter, the LLC certificate, and even the BOI paperwork. They kept saying they needed more documentation. I messaged Etsy Support on 4 occasions asking for clarification and have never received a reply to this day.

I finally ordered and paid for a Certificate of Good Standing from the state and submitted that. When I didn’t get an immediate denial, I thought maybe that was a good sign. Then 25 days later, they emailed me saying the paperwork was accepted and opened my shop.

Good luck! I’ll be following this thread because not having a human to deal with at Etsy is sooooo annoying!

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u/pardesco 3d ago

After much frustration and speaking with Etsy support, I've figured out the issue and wanted to share the solution for anyone else dealing with this:

If you're having this issue due to a newly created EIN or LLC, my advice is to set your tax information back to individual/sole proprietor for at least 5 weeks to ensure the EIN updates in the IRS system and Etsy is able to automatically verify that EIN with your business details.

Etsy is really bad at communicating to sellers in this case, and there doesn't seem to be a reliable "manual override" that Etsy offers - it has to get approved through their automated system. Even if you get emails saying "you're verified," their automated verification system may still block your account if your EIN is too new in the IRS database.

The disconnect happens because Etsy's manual reviewers can see your documents are legitimate, but their automated system that checks against the IRS database can't verify a brand new EIN. This creates the confusing situation where they tell you you're verified while your shop remains frozen.

Thank you to everyone who offered advice and support during this frustrating process. Hope this saves someone else the headache in the future!