I'm located in CA and have never formed a business before, my question is, what do I need to do to be able to sell shirts online and possibly to local shops. I checked out legalzoom and it looks like an LLC would be good, would I need anything else to do this legally? Form a LLC and trademark my brand.
I would suggest you start as a sole proprietorship and move to a corporation when your business gets bigger. The cost is very low and this is very important when you start. Get liability insurance and you are good to go.
Good luck to you. All the best
N
You will want to have the appropriate licenses in place. In addition to a state business license you may
need local licenses, city or county as example. And don't overlook a sales tax permit too.
I agree, if you are the only business owner, sole proprietorship is the quick and easy way to get started.
Of course, I should point out, I am not an attorney. Never played one on TV either, so anything I write here is just my opinion nd not legal advice. I suggest real attorney and tax consultant for all the legal/tax stuff.
I posted this once before but it may give you a bigger picture of what's involved.
The first thing I did was apply to the IRS for a federal tax ID # (FEIN) which is free. then I incorporated with my state ($275.00) and with the FEIN# and state ID# I applied for a state resale tax certificate. Next I was off to my local gov. for a business permit ($75.00). Along the way, I applied for an RN# (free) because my shirts are privately labeled.
Filed a copyright of my designs as a collection ($35.00).
I've registed my domain names (prices vary) and opened a business checking account that came with a debit/credit card.
Start with the FEIN # because as far as the IRS is concerned, you're a business. You can incorporate (if that's your goal) at any time and in any state. The business of fashion starts in your head, but others can't see that. When you are proactive in launching your business, others will believe you're serious. Have many times have you heard someone say, "well I could do that." How many time have you met someone who did it?
I'm located in CA and have never formed a business before, my question is, what do I need to do to be able to sell shirts online and possibly to local shops. I checked out legalzoom and it looks like an LLC would be good, would I need anything else to do this legally? Form a LLC and trademark my brand.
Thanks
You are way ahead of yourself. Start with what type of business you are going to be in.. Don't go over board. Mostly you want a sellers permit, local license, DOB (factious name)you can do business under sole proprietorship. You do not need a federal ID unless you have employees. If you are small and working out of your house you have a simple basic business. You can use your SS number. I have been in business for years and have never had to get a fed ID.. My educational website can give you some info..
You are way ahead of yourself. Start with what type of business you are going to be in.. Don't go over board. Mostly you want a sellers permit, local license, DOB (factious name)you can do business under sole proprietorship. You do not need a federal ID unless you have employees. If you are small and working out of your house you have a simple basic business. You can use your SS number. I have been in business for years and have never had to get a fed ID.. My educational website can give you some info..
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Re: Requirements for starting a t-shirt business?
With your LLC you will get an SOS number. You will also need an EIN number from the IRS. It is free and you can do it online. You will also need a sellers permit from the State BOE. Download the form and mail it in.
There are some very nicely detailed ways to go about this listed above; 'cia and badalou both seem to have been there, and honestly, I can see benefits from both methods.
I'd like to reinforce the need for insuring your business liability no matter what way you choose to go.
You are way ahead of yourself. Start with what type of business you are going to be in.. Don't go over board. Mostly you want a sellers permit, local license, DOB (factious name)you can do business under sole proprietorship. You do not need a federal ID unless you have employees. If you are small and working out of your house you have a simple basic business. You can use your SS number. I have been in business for years and have never had to get a fed ID.. My educational website can give you some info..
Huh..?
My mother is a CPA and she suggested that I get a federal ID ...(EIN)
She told me it is better to have this than to put your Social Security # out there all over the place!
Plus one of the men at STAHLS told me that I needed to have a EIN to register with them.
So , I got one.
....and I do like this better than giving out my SSN !
__________________ For Thou hast delivered my soul from death, mine eyes from tears, and my feet from falling. Psalm 116:8
You can get one but it is not required unless you have employees. I think that is funny that they, Stahs, said they needed one before registering with them. I have been asked if I have one and told them no and to use my SS number and they accepted it. same with every company I have done business with.. and that is a lot. Lou
As Lou mentioned there is no need for an EIN unless you have employee's. If your not an employer then there is no reason to have a Employer Identification Number. It's that simple.
I'd still go with the actual CPA on this one And certainly conventional wisdom has always been to keep your SSN as private as possible. Identity theft isn't exactly a waning problem either. Legally required minimum isn't necessarily the desirable minimum.
I'd still go with the actual CPA on this one And certainly conventional wisdom has always been to keep your SSN as private as possible. Identity theft isn't exactly a waning problem either. Legally required minimum isn't necessarily the desirable minimum.
yep! One thing I can say about my mother is...the woman is very wise. She's a brain actually!
She is amazing.....businesses have gone in to her owing a lot and the woman will have them walking out with a refund due back to them!!!
She is one of those people who can read a book and remember everything ,and I mean everything, in it!!!LOL....not me , I am a true artist personality like my father......... "receipt?...what receipt? ..."it's somewhere in that PILE of papers over there!"...
LOL (....OK...I do have "a little bit" of my mom in me!!...but just a little! )
K....nough about my mom! SORRY! too much coffee!!!
I know that you don't need one...an EIN that is.....but once you have had Identity theft you will never want to give your S.S# out!!!
My mom just stated.... "first of all an EIN is free.....and you can do it online.(no driving involved! ...if you have a secure internet connection that is) And if your business grows to where you will have employees one day , if you get it now ,it will be one less thing you will have to do later.
But most important... no more giving out your SS#!!!!!!! " (my mom says to keep your SS# highly protected now a days!!!
__________________ For Thou hast delivered my soul from death, mine eyes from tears, and my feet from falling. Psalm 116:8
This is a discussion about Requirements for starting a t-shirt business? that was posted in the General T-Shirt Selling Discussion section of the forums.
Requirements for starting a t-shirt business? 
(....OK...I do have "a little bit" of my mom in me!!...but just a little!
)
