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Starting and operating a retail clothing business can be a difficult venture. Therefore, learning how to obtain a business license to sell trademark clothing can be a smart business plan. Trademarked clothing refers to clothing lines with designs and styles protected by federal trademark law. Below are a few things to consider when selling trademarked clothing.
Register Your Business
You will need to start by registering your business with your state and local government. This includes giving your business name and structure. Consider registering as a LLC for the protection and benefits it gives you as a small business. If you will be doing business in multiple states, you will need to register with each state.
Licenses and Permits
Generally, you will only need a retail business license when selling clothing as there is not a specialized business license to sell trademarked goods. You must obtain permission from the trademark owner to sell their goods. Your business may also need to obtain a resale license, which allows you to purchase the clothing from the clothing distributor free from sales tax.
Your business must then collect the sales tax when you resell the clothing. Check with your local county’s finance or revenue department for more specific information. If you plan on holding a large stock of clothing, check local ordinances and lease requirements to make sure you have all the proper permits.
Get a Federal Tax ID Number
If you plan on having employees, you need to get your Employer Identification Number (EIN). You can use the IRS’ assistance tool to help guide you through the process.
Trademark Holder
You will need to contact the trademark holder to get permission to selling clothing with their trademarked design. The trademark holder can be a product company, TV studio or an individual. Make sure to properly research who you need to contact.
When contacting companies such as Nike or Adidas, you will need to fill out an application form. This includes information such as the address of your store, some pictures of your store and a short description of your store concept.
Sublicensing Agreement
Sometimes, the original trademark holder may have already given exclusive rights to a particular clothing manufacturer. In these cases, you will need to go to the other company and obtain a sublicensing agreement. Depending on what the original deal the trademark holder made with the other clothing company, there may be restrictions, such as what types of trademarked clothes you can sell in your sublicensing agreement.
Royalties and Fees
The trademark holder may ask for royalties or fees in order to sell their trademarked clothing. This could include a flat fee for a limited run or a royalty fee for each item you sell.
Word of Caution
You can’t work around a trademark by creating your own design that imitates someone else’s. For example, you can’t make your own Nike swoosh or Disney Mickey Mouse ears, as these are easily recognizable designs that distinguish the brands and their clothing.
Related Questions:
What is the RN Number?
It is an identification number issued by the Federal Trade Commission. For the business that engages in importing, distributing, or selling wool and fur products.
What is the Average Cost of Business Licenses and Permits?
For a clothing line business, you should expect to spend at least between avg. $800 to $1,500.
What are the cost insurances for business?
The cost of health insurance is approx. $4,400 per annum; disability insurance is approx. $3,000 per annum; business overhead expense disability insurance is approx. $24,000, and general liability insurance is approx—$ 6,000, making a total of nearly $37,500 per annum.
Does A Clothing Line Need A Business License?
The retail industry is not particularly regulated in clothing – you do not need a license or certificate to start selling clothing, and as long as you have the equipment and means to do so, you can get started.
Do You Need A License To Sell Clothes Online In California?
In California, online businesses are now required to have a seller’s permit. In the same manner as with physical businesses, online businesses that make three or more sales within a 12-month period must apply for a seller’s permit.
What Kind Of Business License Do I Need To Sell Clothes?
In general, you will only need a retail business license if you are selling clothing, since trademarked goods cannot be sold under a specialized license. Selling goods under a trademark requires the owner’s permission.
What License Does A Clothing Store Need?
There will be different requirements depending on where you live, but generally, you’ll need a seller’s license or a resale certificate as a minimum requirement. Depending on where you live, you may also need a health license, a building permit, or an alarm permit.
How Do I Get A Clothing Vendors License?
- You can choose your business entity here…
- Make sure your business entity has the proper papers.
- If you need to register with your city, do so…
- You will need to obtain a Federal and State Employer Identification Number…
- Make sure you have a permit to sell goods and collect taxes.
- Make sure you have a Garment/Apparel Registration Certificate.
- There are other requirements as well.
What Licenses Are Needed To Start A Clothing Brand?
In the case of a business that would require setting up an establishment or shop, the respective state government would need to issue the business license and establishment act license. It is the responsibility of the local Department of Labor officer in the state where the licence is granted to grant the above-mentioned license.
Can A Clothing Line Be A Business?
Starting a clothing line is a business, right?? The business is driven by your creativity and designs. Planning your first collection is an essential part of the process. Let’s start by talking about how to get started.
Do You Need A Business License In California To Sell Online?
No matter if the business is a physical storefront or an online one, all businesses are required to obtain a California business license. Obtaining a business license keeps track of active businesses in the area and ensures taxes are being paid and filed.
Do I Need A Licence To Sell Clothes Online?
No matter where a company sells goods or services, it must have a business license. A business without the proper licenses can be fined heavily. Furthermore, the city or state may require you to cease operations until the paperwork is complete.
How Do I Get A Permit To Sell Clothes In California?
- You will need your social security number (corporate officers are not included).
- The date of your birth.
- You may also need a driver’s license, a state ID number, or a military ID (e.g., a passport).
- You can find your bank account’s name and location here.
- The names and addresses of the suppliers.
What Type Of Business Is A Clothing Line?
In retail stores and online, clothing lines are collections of apparel designed for a specific target audience. Creating a clothing line involves establishing a company, designing the clothes, selecting materials, and sourcing the manufacturing process, among other steps.
What License Do You Need For Online Clothing Store?
No matter where a company sells goods or services, it must have a business license. In order to keep track of enterprises operating in the area and to collect tax revenue, businesses must apply for a business license.
What License Is Needed To Open A Boutique?
A fictitious name permit or assumed name certificate is required by most boutiques, regardless of whether they are sole proprietorships, corporations, or partnerships.
