How To Register A Clothing Brand In California

Congratulations! You lot're starting your ain clothing business. Maybe you'll design wearing apparel and sell them online. Maybe you'll open a retail shop. Whatever you do, you lot'll need to get the advisable licenses and permits for your new concern. For example, a few states require anyone engaged in the business of garment manufacturing to annals with the land. That includes brand owners who hire vendors to make the clothes. Or for case, some cities crave registration with them in social club to conduct business in that location. The listing of requirements to starting an wearing apparel business can be confusing, and then we've outlined how to comply with the basic requirements and provided helpful website links.

1. Choose Your Business Entity

First, you lot'll need to cull what blazon of business organisation entity to exist. Options range from a sole proprietor, a partnership (general or limited), a limited liability company, to a corporation. All take pros and cons, and different fees and tax consequences. Information technology's best to speak with an experienced professional person to help y'all decide.

2. File the Appropriate Papers for Your Business Entity

The type of entity you cull will determine where y'all file the appropriate papers – at the county or country level.

A. Sole Proprietors Need Not Annals

Generally, most states, similar California and New York, do not require sole proprietors to annals with the canton or state. However, as noted below, sole proprietors must register with the county if they do business nether a dissimilar name.

B. DBAs and General Partnerships Register with the County

Most states crave businesses that "practise business" nether a dissimilar trade name to register with the canton (or land). For instance, if John Smith is a sole proprietor and does business under the name Smith Electronics, then he must register as a "fictitious" or "assumed" name. Below are requirements for California and New York.

California:

In California, whatever business concern (e.g., sole proprietor, general partnership, or formed entity), who does business under a different trade proper noun must submit a Ficticious Business Proper noun Statement in the canton in which it does business organisation. In one case that Statement is filed, information technology must exist published in a local paper for four successive weeks. Run across the various requirements for these California counties: San Francisco County , Santa Clara County , LA County.

General partnership agreements may (simply are not required) be recorded at the county recorder's office in the county where the general partnership is located. See this website for more detailed information: California Secretary of Land .

New York:

In New York, sole proprietors and general partnerships doing business concern under a different merchandise name must file a Certificate of Assumed Name in the county they acquit business organisation. For information about filing the Certificates of Assumed Proper noun in New York City, see New York City Business organisation .

On the other mitt, corporations, limited partnerships, and limited liability companies who exercise business organization under a name dissimilar from the name they were formed under, must file an Assumed Name Certificate with the New York Section of Land (who and so forwards information technology to the County). See this web page for more data: NY Dept of Country – Cert Assumed Proper name .

C. Formed Entities Annals with the State

Almost states require formed entities to register with the land, including corporations, limited liability companies, and certain forms of partnerships.

California :

In California, corporations, express liability companies, express partnerships, and limited liability partnerships must file the appropriate papers with the California Secretarial assistant of Land. For example, corporations must file Articles of Incorporation, and limited liability companies must file Articles of Organization.

General partnerships are not required to file anything with the Secretary of Country, only they may file a statement of partnership authority with the Secretary of Country (Form GP-1) to specify the say-so of each individual partner. Equally noted higher up, they may too record their full general partnership agreement with the county.

For more information about what to file, run into California Secretarial assistant of State .

New York:

In New York, corporations, not-for-profit corporations, limited liability companies, limited partnerships, and express liability partnerships must file the appropriate papers with the New York Department of State. For more than information run across New York Dept of State .

As noted above, general partnerships file a Certificate of Assumed Name with the canton (not the state) in which they are operating. Come across New York City Business organization .

If a corporation, not-for-profit corporation, limited liability company, limited partnership, or express liability partnership operates under any proper name other than the 1 they were formed under (trade name), they must also file a Certificate of Assumed Proper noun with the Dept. of State (who then forrad it to the County Clerk). See this website for more information NY Dept of Land -Cert Causeless Name .

Related Reading:The Legal Side of Starting Your Business | Types of Insurance Entrepreneurs Need | How to Finance Upfront Product Costs

3. Register with Your Urban center (if required)

Whatever your business entity (eastward.g., sole proprietor, corporation), many cities require that y'all annals to practise business organisation in their city just to operate at that place.

At that place are numerous cities in California that require registration, including the cities of San Francisco, San Jose, Los Angeles, and Santa Monica. See these websites for filing requirements: City of San Francisco , City of San Jose , City of Los Angeles , and City of Santa Monica .

Some cities in New York also crave registering your business organization to do business there, like the City of Albany . Manhattan has no such requirement.

four. Obtain Federal and State Employer Identification Numbers

More often than not, y'all'll need a Federal Employee ID Number (FEIN) if you operate as a corporation or partnership, and/or take employees (among other reasons). You'll likewise need a FEIN to obtain various permits, including a Garment/Apparel Certificate. Visit the IRS Website for more information.

In California, if y'all have employees, you'll need to apply for a state employer ID number with the Employment Development Department. Come across California EDD Website .

In New York, once a corporation if formed, the New York Country Tax Section automatically assigns it a taxation ID number, and sends it to the corporation. Meet New York Taxation Dept .

5. Obtain A Permit to Sell Goods and Collect Revenue enhancement

If y'all sell taxable appurtenances – similar apparel – y'all'll likely need a "seller's permit," "document of authorization," or something similar. These permits permit you to buy raw materials to make goods (e.thousand., fabric) without paying sales tax, and to collect sales tax on appurtenances sold to customers (which are then paid to the state and/or local governments).

California:

In California, sellers of apparel must obtain a seller's permit from the California Board of Equalization. Find out more here: CA BOE Seller'south Permit FAQ and CA Board of Equalization .

New York:

In New York, sellers of apparel must obtain a Certificate of Authority from the NYS Department of Tax and Finance. Find out more here: NY Dept Tax & Finance Sales Tax Message and

NY Dept Tax & Finance .

6. Obtain A Garment/Apparel Registration Certificate

Some states, similar California, New York, and New Bailiwick of jersey, require that if you are engaged in any part of the manufacturing process of making a garment, then you are required to register with the state. That includes anyone engaged in cutting, sewing, finishing, assembling, pressing, or otherwise preparing garments, and anyone who contracts for those services. If you are a brand owner and hire contractors to make your garments, so y'all are required to register. Importantly, you need to obtain a document before actually engaging in business.

Additionally, if you are from out of state (east.g., Minnesota) and contract with a manufacturer or contractor (due east.g., blueprint maker) from a state that requires registration (e.g., New Jersey), you may need to annals with that state.

The applications for these states vary widely, with New Bailiwick of jersey being the simplest, and California existence the most all-encompassing. All require general information about the applicant, such equally proper noun and contact data of the legal entity, employee tax ID numbers, with whom you've done concern, and proof of worker'southward compensation if you have employees, among other things. California and New York crave documentation, including proof of legal entity (eastward.k., Articles of Incorporation for a corporation). California additionally requires information about family members in the garment manufacture, proof that no outstanding employment taxes are due, and requires the applicant to take and pass an exam, among other things.

For more information, see the post-obit links:

California Garment Registration Document: CA Dept of Industrial Relations.

New York Apparel Industry Certificate of Registration: NY Dept of Labor .

New Bailiwick of jersey Clothes Industry Document of Registration: NJ Dept of Labor & Workforce Dev .

7. Other Requirements

There may be other city and local permits, licenses, and requirements you'll demand depending on how and where you operate, and whether you have employees. For instance, if you piece of work from home, you may need an occupational let. If you have a burglar alarm on your storefront, you may demand an alert let. If you remodel your retail space, you lot may need a building permit. If yous have employees, you'll likely need worker's bounty insurance, amidst other things. Some cities also require you to report taxable business concern assets.

California has an informative interactive website to help go through the maze of additional requirements that may be needed: Cal Gold Permit Assistance . New York Metropolis has a similar interactive site: New York City Business Magician . Another good resource is the SBA which sets forth requirements per state: SBA Website .

This commodity is for informational purposes only and not meant as legal communication. Always contact a lawyer when seeking legal advice.