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We all know that having a retail clothing business is not that easy. One thing you need to learn is to obtain a business license for you to sell trademark clothing. Doing so is a smart way to plan your business. Clothing lines or also known as trademarked clothing have styles and designs that are protected by trademark law. Before you start selling clothes, in this case, you will want to consider the following details.
Do I need to Register my Business?
Wherever your location is, it is best to begin by registering your brand or business with your local government. Your business should have a name and structure. If you plan on expanding it across different countries or states, you need to register it in that store location and submit the requirements.
Permits and Licenses
When selling clothing, you typically need a retail business license since there is no specific business license in selling goods that are trademarked. You should get permission from the owner of the trademark that you want to sell their goods. You might also need to get a resale license, which lets you buy the clothing from the distributor with no sales tax.
Your business will have the sales tax as soon as you start reselling them. Check the local finance or revenue department of your location or country to get more specific details. If you want to hold a huge quantity of clothing, you need to also check lease and ordinances requirements in your local area to secure the permits.
Tax ID Number
Do you need employees to run your business? If you do, you must get an Employer Identification Number. You can ask the local government office to guide you through the steps that you need to do.
One important thing you need to do is you should communicate with the trademark holders and ask for permission to sell a clothing line using their trademarked design. You may be dealing with a TV studio, Product Company, or an individual trademark holder. Take time to research and find out who you need to talk to.
An application form is needed if you want to get a hold of big companies like Adidas or Nike. You’ll be indicating your store’s address, store images, and a short store concept description.
What is a Sublicensing Agreement?
There are times that the original trademark holder might already have given exclusive rights to another clothing manufacturer. In such cases, you must go to the other company and then get a sublicensing agreement. There may be some restrictions since it would depend on the original deal made with the clothing company and trademark holder, like the types of trademarked clothes you are allowed to sell that will be indicated in your sublicensing agreement.
Are there Fees and Royalties?
Some trademark holders ask for fees or royalties for you to sell their trademarked clothing or design. It can be a flat fee, a limited time, or a royalty fee for every sold item.
Don’t use trademarked designs and then adding your design on it that will show obvious imitation.