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'm looking for advice from your guys who have been where I'm attempting to go.
Just like most other people here I'm trying to make myself a brand name that will stand out among the thousands already out there.
my question is, In your eyes, from your experience, when do you transition from a small home set up, selling t shirts out of your garage, into a legitimate corporation, paying taxes, with an EIN#, with a copy righted name?
Right now my vision of having a branded t shirt line is just a dream, but I need to know, Should I do all that legal stuff up front, or should I make and sell my t shirts to freinds and family for a while before I spend a few hundred bucks making my dream a bona fide corporation?
also how much does making a corporation and registering my brand name cost roughly?
What are all the legitimates that are needed? For example im just starting out in the business i'm getting a name trademark/logo, what else do I need RN#, Resale#, Tax ID#? What else is neeeded besides these things? And will an accountant handle all of these (besides trademark)?
cost is not much if you are considering the penalties for not doing it right from the start the resale # cost $0.00. the EID # cost $0.00, the what will cost you is you LLC but it depends who does it if you do it it might cost you $150.00 if an accountant does it, it will be more. maybe up to $500.00
I need to know, Should I do all that legal stuff up front
Yes, you should obey the law. Do you really need us to tell you that?
Quote:
Originally Posted by andyjorgen
also how much does making a corporation and registering my brand name cost roughly?
As others have said, it depends on your county/state/country, but it's usually pretty nominal (less than $200).
Also, names aren't copyrighted, they're trademarked. Trademarking a business name is usually regarded as an unnecessary expense until you've established your brand and can afford it.
go to your states website and get info on setting up a "sole" or "general" proprietorship, the cost is minimal. At this point, there is no need to set up as an LLC or a corperation, that will come as your business grows and you need to hire employees, bring on partners, differentiate your business from your person, etc...
also, I recommend setting up your EIN#, this is free and good to get out of the way, you can do this if I remember correctly on www.irs.gov many companies you deal with will use this number to set you up as a vendor, and it just it more professional to have this number when asked.
your SS# works too...but like I said, more professional and makes your business seem more "legit"
Also, take care in picking a name, make sure you do your research and make sure the web domains are available, then buy every variation you can think of...lol
Yes, you should obey the law. Do you really need us to tell you that?
As others have said, it depends on your county/state/country, but it's usually pretty nominal (less than $200).
Also, names aren't copyrighted, they're trademarked. Trademarking a business name is usually regarded as an unnecessary expense until you've established your brand and can afford it.
can't someone steal your brand if you don't have it trademarked first?
can't someone steal your brand if you don't have it trademarked first?
Not exactly. If they can establish themselves under the same name, and you can't prove that you were around first, then yes. But if you can prove that you were established and running that brand before they came along, then no.
Trademarks are valuable because they provide automatic legal proof. If you have a brand you want to protect, and you can afford one, then they are recommended.
But the fact is most brands start without one, and there are some legal protections in place if you run into any problems.
can't someone steal your brand if you don't have it trademarked first?
Yes they can and they can steal it even if you do have it trademarked!
For example,
A million named Steve Krune (random person, not real!) wants to start a clothing line cause hes bored and he picks the name Linty Fresh. Most of us know Eric Terry owns it but this millionaire comes and loves the idea and clearly rips the name off and everything. Once Eric finds out the big issue is that even though Eric would win easily because his brand has been around 2-3 years before. But can Eric afford to take legal action? Often these things take at least $4,000 on a smaller level. Yes Eric can send millions of emails, hatemail and ceist and desist orders but if he can't back it up with $ sadly he could lose it. So if you can afford a Trademark of course get it if you are serious about the company. But if you don't have the money for the trademark how can you afford to spend on suing someone?
My advice,
get tons of domain names, a myspace, any other networking sites that way it'll give a small amount of protection.
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make a shirt, if it sells, come back then ask. i think a million new t-shirt companies are opened every day. if you can actually sell them, then you can think about doing all the business stuff. this way at least you dont loose the $200 or so dollars that you will spend on your bis. lic. you might find out its not for you
making a business bona fide. 
