This section of the forum is for discussing the business and finance issues of the t-shirt industry. Which business structure to use (sole proprietor, LLC, S Corp, etc), how to handle billing, where to register your business and get the proper licensing, etc.
Im super new to this and have a couple questions if anyone can help.....I just got a heat press and im ordering some plastisol transfers. Im going to start doing my own shirts as well as supplying my MMA school with shirts. Should I just see if I can get things going or shoud I really take all the legal steps whatever they may be to set up my own company.Appologize if i didnt post correctly, first time.
Thanx
When I set my business up, it was strongly suggested that I set up a LLC. before I sold anything and if you already have the equiptment to have it legally transfered to the business and not to you personally. I was told that if something happened and I got sued as a LLC. they could only get what the company had as assets. If I did them as myself or as a DBA (Doing Business as) and I got sued, they could go after my personal assets (house ect...) If I didn't transfer the equiptment, they could still sue me instead of the business.
I'm sure things vary by state but this is what my lawyer and accountant both suggested. The safest thing to do would probably be to talk to a lawyer in your area before going farther.
Im super new to this and have a couple questions if anyone can help.....I just got a heat press and im ordering some plastisol transfers. Im going to start doing my own shirts as well as supplying my MMA school with shirts. Should I just see if I can get things going or shoud I really take all the legal steps whatever they may be to set up my own company.Appologize if i didnt post correctly, first time.
Thanx
That really depends on if you are doing this as a hobby, or if you think you are serious about starting up a new business.
If it's a hobby, go ahead and have fun. If it's a business you will need to look into record keeping for taxes and accounting, bookkeeping, resale lic, business license, etc.
Welcome to the forum & good luck to you! I did an LLC. But, if you're not going to actually start a company...don't register @ all. Although, I did read here on the forum that it was harder to get blanks & other merchandise w/a license. Check the search button located @ top left of page for previous links regarding this. If I come across 'em...I'll send 'em over to you.
Great question and here are a few notes from my book of experience.
First of all you have to sit down and decide how deep in the water you want to go "At this time".
If you are just getting started and feeling the market then you have the option that many in this country have used and that is to start off as a "pirate" and doing business like that guy who has a landscape business. He flies under the radar and gets paid in cash or checks in his name.
It all works for him and he is running what I like to call an entrepreneurial operation. There are cake makers and furniture guys that do this their entire life and never incorporate or get an occupational license.
You need to decide if you are going to go all out or feel the waters for a while. With the economy creeping along I would think long and hard about this decision.
Most states regulate and license all corporations and the local county or city give out some form of occupational license as well. Depending on the area you live in you may be responsible for taxes to the county and or city in the first month you are in business. They can also tax your business property and send you a nice bill at the end of the year. That is something to think long and hard about before you start filing out the paperwork.
Some small counties only require a flat fee each year while others want a quarterly report on sales tax plus the revenue.
Another problem you may run into is the name of your company. Sure you have this great name and want to put it out there for the world to see but if you aren't a LLC or corporation someone can take that name & create a legitimate corporation and have the rights to the use of that name because you were never considered a legal entity.
By creating an LLC or Corporation in most areas of the country you are given the exlusive right to use that name in your state. A trade name is to be taken seriously in business and reflects directly on your products. If you sit on the fence and wait then you risk the chance of someone grabbing that from under you. Common law regulates most trademarks and service marks so the first to use it normally has fair use but if you aren't a legite corporation or LLC in the eyes of the state you have very weak legs to stand on. It all depends on how much you want to protect your business identity. If you took the time to think of a catchy company name that will remembered think about how McDonalds or Motorola protects their trade names.
An LLC can be started in some states with less than $100 dollars and an attorney isn't needed to fill out the simple paperwork. a three page document stamped by a notary is all it takes to become an LLC and if you are the sole owner then the papework is extremely easy to file. When you start adding partners and become a corporation with stock etc. then you should consult an attorney, otherwise, an LLC is about the easiest type of entity to form if you are the only person involved. (this makes the stress level so much easier down the road)
When ordering wholesale products like T-shirts and goods you will be asked for your federal tax ID number about 90 percent of the time. This number gives you the right to purchase at wholesale price ..BUT also comes with a responsibility to declare taxes from that point on to the feds. This is ongoing until you dissolve your corporation.
Just a few things to think over before you make the jump into the water.
Hope that helps
Last edited by Austin300; November 16th, 2009 at 09:16 PM.
Welcome to the forum & good luck to you! I did an LLC. But, if you're not going to actually start a company...don't register @ all. Although, I did read here on the forum that it was harder to get blanks & other merchandise w/a license. Check the search button located @ top left of page for previous links regarding this. If I come across 'em...I'll send 'em over to you.
Again, good luck whatever you decide to do.
whoa... a simple post and so many responses and links. My apologies for not doing the search first, that was stupid of me. Thanks for all the pointers, though!
Dont let all this stop you from moving forward. You have made the first step by purchasing the equiptment. Stay focused, the Tax ID is what you need for purchasing garmets at wholesale price, you can do that online in your PJ's.
Dont let all this stop you from moving forward. You have made the first step by purchasing the equiptment. Stay focused, the Tax ID is what you need for purchasing garmets at wholesale price, you can do that online in your PJ's.
Just starting and confused 
