When selling apparel online...?

Question

What kinds of permits and forms will I need to fill out beforehand? I'd appreciate answers from people who are already involved in this.

Answer 1

First of all...I'd forget about the business license for now (that can wait). I'll explain at the bottom of this response.

If you are buying the apparel wholesale, the first thing you need is a "reseller's license" or "reseller's permit" from your state. (very easy to obtain from your state government's website). If you are designing and creating the apparel on your own, you still need this to prevent you from having to pay sales tax on materials.

Second thing to think about before you do this: If you are buying the apparel made from established brands, add this to your additional details, or email me. There are a lot of other legal issues you need to think of before you do this.

2nd thing: It sounds like this is a new startup business for you, so you can remain as a sole-propiertorship for now. Later on, you can consider setting up a Limited Liability Company (LLC), to protect yourself from any legal issues. Keep in mind, that the more licenses, etc, that you setup now will create a backlog of mail and forms you'll have to bother with in the beginning.

One thing as well... You will need a "merchant account"...to accept Visa, Matercard, Amex, etc. Companies that only accept PayPal always seem very unestablished to me.

One advantage to setting up an LLC, is that your placement in Google will most likely improve sooner, because they check public records and make decisions on how "important" a site is based on those records.

If you don't have a domain name yet, get one immediately. Older domains names take precidence with Google, than new ones. Webmasters call it the "sandbox effect".

Email me if you have any specific questions...I'd be happy to answer when I have time. Good luck.

Answer 2

If you are using a fictitious name (not a user ID like eBay, but actually doing business under a different name like Clothing Etc.), you will have to register that name with the state. Many state's web sites let you search to find out if a name is already in use.

After you register your fictitious name, you will probably have to apply for a sales tax permit. Rules vary by state, but you will probably at least have to collect sales tax from customers that live in the same state you are doing business in.

Most cities require a business license. That is usually done at your city clerk's office.

If you are in an apartment, condo, or other homeowners association, make sure you are not violating any rules forbidding running a business from your home. You are usually okay as long as you don't have customers coming to your place or having a lot of big deliveries or pick-ups, but it is better to know ahead of time than to get evicted because you didn't check.

Answer 3

depends on where you selling...I do & have no permits....