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.
I am currently registering my business in NJ, and while filling out the form it asks if I am manufacturing apparel, wholesaling apparel, or retail apparel business.
Now I buy the shirts from a factory or wholesaler, and screen print myself and sew tags in myself (or will outsource as necessary). I also sell to consumers (retail) and also plan on selling wholesale to shops and hopefully a few bigger stores, so what should I register as. Or maybe one has other tax benefits? Any recomendations?
Re: Clothing brand-is this manu.,retail,or wholesale
Well it's been up the better part of the day with no replies, so I'll pitch in.
Keep in mind I have no knowledge of NJ laws, so I'll suggest finding someone (SCORE sounds good) that does.
You may qualify as a manufacturer, but there may be problems that go with it. Such as inspections and workplace regulations, etc. Again, I don't know, but I'd be cautious about that one.
You will definitely be eitehr wholesaling or retailing. I'd say wholesaling would be safer, but again there are different considerations.
You really should check with someone who can give you a better answer. Again, try SCORE, or talk to a small business bookkeeper or accountant who may have an idea.
Whatever you do, don't go by what you read on a forum. There is as much mis- or dis- information spread around as their is accurate information. And telling the taxman or a judge you saw it on a forum just isn't going to do much good.
.
Re: Clothing brand-is this manu.,retail,or wholesale
I also do not know NJ law, but in California we deal with Sales Tax issues. I sell both retail and wholesale. If we sell wholesale, I'm required to have in file a Tax ID or Reseller ID of the company I'm selling to. They are responsible for collecting and reporting taxes collected when they sell your product. While doing taxes, we separate the two categories (done by our accountant). I'm sure if you check with your local tax agency, they'd be able to give you some guidance.
Hope this helps,
animmike
Clothing brand-is this manu.,retail,or wholesale 
