Long gone are the days when Texas was recognized solely for its cowboy couture. The cowboy boots and hats, classic jeans, and shiny belt buckles were the essentials and most recognizable style elements of the Lone Star State’s, but today Texas has grown into a true fashion metropolis.
If you’re a fashion enthusiast looking to open a new clothing store, there are certain things you must take into consideration before venturing out into this business.
In this article, we provide you with some helpful insight into the basic legal issues that you should keep in mind when starting your own clothing line business in the State of Texas.
Obtain Insurance
As the owner of a newly opened clothing store, you must always consider the safety of customers and your business property as the top two areas of risk. Accidents happen every day and you must be aware that an injury to a customer or damage to their property, while they’re on the premises, might happen. In addition, damages to the business property as a result of fire, theft, and other causes are also common.
With all this in mind, do your research and look for the best Texas business insurance to have your business and your retail store inventory and assets properly covered and protected. A good general liability policy will be a great safety net to protect you if a customer slips and falls and suffers a personal injury at your place of business.
For any questions, in regards to what type of insurance policy you should choose, contact an experienced insurance agent to recommend a solid policy designed for clothing line businesses.
Choose the Business Entity
Whether you run your own clothing store as a sole proprietorship or partnership, use a legal form like a corporation or a limited liability company that will protect you from personal liability.
Operating a clothing store is not considered a perilous business but with some luck, you will welcome a high number of customers walking through your doors every day but also employees who’ll engage in a certain level of physical activity.
As a result, there is a chance of a person getting injured, someone’s property being damaged on the premises, in which case you would want the business and not you personally, to assume responsibility for any kind of liability.
Name Your Business
In the process of naming your business, remember to not violate any trademark laws. If you choose the name identical or very similar to the name of another clothing store, or similar business, it might create confusion.
In the past, it was easy for people to start small local businesses and explore the uniqueness of the names they wished to use since they assumed that there were certain geographic limitations on business names. Nowadays, clothing store owners must be aware of trademarks and trade names that might be used by anyone and any place across the entire country to avoid looking at a trademark infringement suit.
To avoid facing these issues, the best approach is to conduct a thorough search of existing business names before choosing one for your business. Use the internet and basic search engines like Google to investigate, search the federal trademark register of the United States Patent and Trademark Office (USPTO) and look at filings for limited liability companies, corporations, and entities registered with state and local government offices.
For this, you can simply use databases like the one maintained by the Texas Comptroller of Public Accounts to provide you with greater certainty about a particular name that you’re interested in.
Check Licenses and Permits
Even if you plan on operating as a sole proprietor, you should consider obtaining a federal tax ID number, also known as an Employer Identification Number (EIN) through a simple online process on the IRS website.
Although the State of Texas has no general business license or permit requirement, it still is recommended that you ask the local government at the city and county levels to see if there are specific license or permit requirements for your type of business.
However, one thing you’ll need to obtain is a state sales tax permit online through the Texas Comptroller of Public Accounts website but always consult Texas authorities to be sure you are on the safe side.
Conclusion
If you’re someone who lives in Texas, lives and breathes fashion, and keeps up with the latest fashion trends, starting your own clothing line business might be the right fit for you.
However, being informed about all legal issues like insurance, naming your business, and obtaining the right licenses is a must if you want to start off on the right foot and have a prosperous business.
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