Fashion Business Inc - What type of Licenses do I need in order to start my own apparel company?

What type of Licenses do I need in order to start my own apparel company?

Each city and state has its own rules and it is best to call your local city hall and Chambers of Commerce to inquire, about the exact licenses needed in your area. There are, however, certain licenses that will be necessary no matter in which state or city you intend to set-up business. Resale License: From the State Board of Equalization. There will be an office in your local town and you can call and apply over the phone. Taxes: The IRS and the state taxing agencies produce many free publications to help you fill out your tax returns, and to answer your tax questions. All publications and forms can be ordered from: Internal Revenue Service 800 829 3676 www.ustreas.irs.gov FBT -Franchise Tax Board 800 338 0505 800 852 5711 www.ftb.ca.gov Business License: Business License from your local city hall. If you are working from the home, your fee will be minimal. The larger the company becomes, and the more personnel, the more regulations and licenses there are to apply for. When you describe the type of business you are operating from the home, remember to specify that it is to be used as an office or design studio, and that the manufacturing will be done elsewhere. It is illegal to sew from your home for commercial sales. You must have a Manufacturers license in the State of California and New York. Employer Identification Number: All businesses must have an Employer Identification Number, (abbreviated as an EIN). If you are the sole proprietor, and are the only employee, it is possible to use your own Social Security Number as your EIN. However it is strongly recommended to obtain a separate EIN, because your future activities may require one. For example; if you hire other employees, you must have an EIN. The EIN is free. To request an EIN application contact the IRS by telephone, mail or fax and ask for a SS-4 Form. Registration Number The R.N. number is used to identify the garment’s manufacturer. www.FTC.GOV Garment Manufacturing License Obtained from the Department of Labor. This license is required of all apparel manufacturing businesses in California and New York State. They require an annual fee of $750 to $2,500 dependent on the size of the company. Proof of workers’ compensation insurance is also required. The owner of the company must sign this application, and must take a brief test on labor laws. It is law that a manufacturer must obtain this license before they begin to manufacture. If you have not obtained this license and you are a manufacturer you will be subject to fines and confiscation of your goods. Public Health License Obtained from the County Department of Public Health Services. All garment manufacturers require this license for employees. This license is renewed June 30 of each year with payment of an annual fee. Insurance Issues When doing business from the home, it is a good idea to talk to your insurance agent to inquire about special issues pertaining to a home office.