How to Start an Online Boutique Legally
Are you thinking about starting an online boutique? Not sure what the legal requirements are for starting an online boutique legally? Then you have come to the right place. In this article, we explore different ways to start an online boutique legally in-order to ensure your boutique is legally compliant.
DISCLAIMER: This information is based on research and personal experience and must be used in conjunction with advice from a legal professional.
1.Your Business Name
The first way you can start an online boutique legally is to come up with a business name that isn’t registered or trademarked by someone else. This means that you could end up in legal trademark battles with the existing business. The best way to check this is do a Google search, check social media platforms, trademark websites, check with governmental websites that deal with company registrations to ensure that the name isn’t already taken by someone else.
2. Register your Business
Another way you can start an online boutique legally is to ensure that your business is legally registered for tax purposes.When it comes to selecting a business structure, there are a variety of options you can choose from, all dependent on how you plan to operate such as;
Sole Proprietorship/Sole Trader – This is the easiest way to register your business and is ideal if you plan to run your business alone. There is less paperwork involved in getting registered, all the profits earned are yours. However you are also liable for any debts incurred by the business.
Partnership – This is ideal for a business being run by two people. In a partnership, you and your partner (or partners) personally share responsibility for your business and are both liable for any debts.
Private Limited Company or LLC- This is ideal for those who plan on not just running the business themselves but having other shareholders and stakeholders involved. As a limited company you are separate from your business, meaning any debts incurred by the business do not directly affect your own personal assets.
3. Get A Sellers Permit/VAT Number
Similarly you can start an online boutique legally by ensuring that you register for a sellers permit of VAT number. As a business selling products online or offline, you need to ensure that you register and obtain a sellers permit or VAT number (UK) if you plan to buy and sell any type of products.So if you plan on physically handling any inventory, buying and reselling products then you must apply for a sellers permit as you will need this to charge sales tax. Again check with your state to see how it all works.
4. Get An EIN or PAYE Number
Again one way to ensure you start an online boutique legally is to get an EIN (USA) or PAYE (UK) number if you plan on hiring employees. If you are a sole trader or sole proprietor, then you can use your social security number or national insurance number as there is no need to get an EIN if working alone.
5. Business Bank Account
Getting a business bank account isn’t necessarily a legal requirement when starting an online boutique. However if you run a Ltd or LLC, then you are usually legally required to register for a business bank account. However if you are self employed or a sole trader, then this is optional. However it is still a good idea to have a separate account that differentiates your business transactions from your personal transactions.
So these are 5 ways to start an online boutique legally. If you are looking for an all in one boutique business startup kit, then be sure to checkout the Run Boutique Business kit by CLICKING HERE.