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Starting an Online Boutique – Licenses, Permits & Insurance

Do you want to know the legal requirements you need to start an online clothing store? If YES, here is a checklist of boutique licenses, permits & insurance.

Having provided you with a:

  1. Boutique Industry Overview
  2. Market Research and Feasibility
  3. Online Boutique Business Plan
  4. Online Boutique Marketing Plan
  5. Online Boutique Name ideas
  6. Clothing Store Licenses and Permits
  7. Cost of Starting an Online Boutique
  8. Clothing Store Marketing ideas

We will consider what it takes to get operating license and permit for your online clothing boutique including insurance coverage and intellectual property protection.

Starting an Online Clothing Boutique – Licenses, Permits & Insurance

  • Best Legal Entity to Use for an Online Boutique

When it comes to starting an online retail clothing store / boutique you are required to legally register the business if you want to run the store without any hitch. No doubt choosing a legal entity for a business can be a bit challenging.

When it comes to choosing a legal entity for a business such as online retail clothing store you have the option of choosing from general partnership, a limited partnership, an LLC, a “C” corporation, or a “S” corporation. It is important to clearly state that these different forms of legal structure for business has its own advantages and disadvantages; which is why you must weigh your options properly before making your choice.

These are some of the factors you should consider before choosing a legal entity for your online retail clothing store; limitation of personal liability, ease of transferability, admission of new owners and investors’ expectation and of course tax issues. If you take your time to critically study the various legal entity to use for your online retail clothing store, you will agree that limited liability company; an LLC is most suitable.

You can start your online retail clothing store as limited liability company (LLC) and in future convert it to a ‘C’ corporation or a ‘S’ corporations especially when you have the plans of going public and international.

Upgrading to a ‘C’ corporation or ‘S’ corporation will give you the opportunity to grow your online retail clothing store so as to compete with major players in the industry; you will be able to generate capital from venture capital firms, you will enjoy separate tax structure, and you can easily transfer ownership of the company; you will enjoy flexibility in ownership and in your management structures.

Is Professional Certification Needed to Open an Online Clothing Boutique?

With a high school diploma and a good business skills, you can successfully run your own online retail clothing store. Of course you do not need any professional certification before you can be allowed to run an online retail clothing store; the business is open to all and sundry as long as you play by the rules and regulations governing online business (ecommerce) in your country.

  • List of Legal Documents Needed to Run an Online Boutique

Aside from the necessary insurance policies that you need to protect your business, you would need acquire some key legal documents if you know you want to be well protected while operating your online retail clothing store business.

These are some of the basic legal document that you are expected to have in place if you want to run your own online retail clothing store business in the United States of America;

  • Certificate of Incorporation
  • Business License
  • Business Plan
  • Non – disclosure Agreement
  • Employment Agreement (offer letters)
  • Operating Agreement for LLCs
  • Insurance Policy
  • Contract documents (for vendors / shipping partners)
  • Online Terms of Use
  • Online Privacy Policy Document

Insurance and Online Retail Clothing Store Business

When it comes to starting a business, you don’t have any options other than to protect the business and one of the ways of protecting the business is to purchase suitable insurance policy for the business. As a matter of fact, if you want to run a business in the United States of America and in most parts of the world; you will be required to buy at least some basic insurance policies.

At least any business owner is expected to have general insurance policy cover, and liability insurance policy cover. Other insurance policies that are necessary are business overhead expense disability insurance, business owner’s policy group insurance, health insurance and also workers compensation et al. In case you need to know the some other key insurance cover that you would need in your state, you can consult an insurance broker; they are in a better position to give you profession advice as regards that.

  • Getting Intellectual Property Protection for your Clothing Store

If you are looking towards running an online retail clothing store, one of the legal documents that you should not bother about securing is an intellectual property protection. Generally, the nature of the business does not warrant that you secure an intellectual property protection.

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