Do you want to know the legal requirements you need to start a clothing line? If YES, here is a checklist of clothing line licenses, permits & insurance.
Having provided you with a:
- Clothing line Industry Overview
- Market Research and Feasibility
- Clothing line Business Plan
- Clothing line Marketing Plan
- Clothing line Name ideas
- Clothing line Licenses and Permits
- Cost of Starting a Clothing Line
- Clothing line Marketing ideas
We will consider what it takes to get operating license and permit for your clothing line business including insurance coverage and intellectual property protection.
Starting a Clothing Line – Licenses, Permits & Insurance
- Legal Matters
Before officially launching a clothing line business, it is very important to legalize the business; you would need to register your business and obtain a business license and other permits before you can be allowed to legally run a clothing line business in the United States of America and in most countries of the world. It is also necessary to open a corporate bank account for your business and obtain a Tax Payer ID number.
It is very important to choose a business structure for your clothing line trade. You could decide to start out as a Limited Liability Company (LLC), a Corporation or in Partnership with other investors. If you want to set up your clothing line business in the United States of America, you would need to also obtain necessary permits from health and safety departments, fire departments, and general approval for your facility.
Do You Need Professional Certification as a Clothing Line Owner?
There are businesses that requires professional certifications before the business can be launched, and of course clothing line business is not one of them. Any entrepreneur who desires to start his or her own clothing line can start it with little or no stress. The only requirement that will count as a positive factor is having the right skill set. Tailoring skills, sales skills, business management skills and creativity might just be enough to launch a clothing line business.
However, obtaining a degree or diploma is a good idea when you have a plan of starting a clothing line. This is so that you can be well positioned and can begin to go global and favorably compete with the leaders in the industry. Some of the prominent fashion designing schools can be found in New, York, Paris, London, and Milan et al. If you live in New York, you can try New York School of Design, Fashion Institute of Technology, New York, and New York School of Design.
List of Required Legal Documents Needed to Start a Clothing
What are those documents needed in order to adequately have your business registered and good to go? Here are some of the legal document needed before launching a clothing line business are;
- Certificate of Incorporation
- Business License
- Business Plan
- Memorandum of Understanding
- Non – disclosure Agreement
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Company By – laws for Corporations
- Insurance Policy
Insurance Policy for your Clothing Line
Having the right insurance policies that is solid and secure is one very smart way to start a business. There is a couple of insurance policies that a clothing line company should own. Some of them come cheap, whilst others may not.
At least you are expected as a business owner to have the general insurance, and liability insurance. 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
- Intellectual Property Protection
Starting a clothing line, may not require that you secure your intellectual property especially when you are into mass production of clothes. However, if you are a designer with your own unique designs, you may consult an attorney to help you secure your intellectual property with trademarks, tradename and copyrights.
This can only be done if you are pretty sure that you are the inventor of the style or design. One thing about the clothing line industry is that designers are more concerned in protecting their logo and brands as against protecting their designs or styles.