Business: April 2008 Archives
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By Rudy Land on April 23, 2008
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With the debut day for Rudyland on the horizon, I've decided to take a look back at my journey so far and write a blog entry that I wish was already written when I was doing my research into starting a business (and preferably by someone with way more business experience, but I digress).
The idea of starting a business is pretty daunting. It seems like such an impossible task, and it's taken me about four years to get my act together and go for it. I'm certainly no expert, but I hope my experiences can be helpful to others who may be in the same position.
First Steps: What type of business am I going to be, anyway? The four main types are Corporations, Limited Liability Corporations (LLCs), Partnerships, and Sole Proprietors. Since I am going to run my business individually, with no employees, I'm a Sole Proprietor. I'll have room to grow later on, and won't have to fill out as much paperwork in the beginning. The only real disadvantage is that if my business is unsuccessful and I owe too many debts, collectors can go after my personal assets. If I become an LLC later on, I'll have much more protection, but for now I'll be smart with my money and investments, and hopefully won't have to worry.
How much paperwork do I have to deal with? I've made a list of everything required to run a business in California. This shouldn't be too different for other states, but check to make sure!
Get a PO Box. When your FBN information is published, it's public record. If you're running your business from your home, unless you want your home address published, use the PO Box as your Business Address. This also makes it very easy to separate business correspondence and banking from personal correspondence and banking.
Set up Business Banking. Once you have the FBN paperwork filed you can open a Business Bank Account. This is the only document the bank needs in order to open your account aside from obligatory personal info. It helps to have the EIN as well when you set up your account, but for a Sole Proprietor this isn't required.
Find a CPA. I went to Art School so I'd rather not deal with tax deductions and complex legal filings related to money. A CPA will take care of all your business finance requirements and make sure you can write off that $1500 Nikkor Lens as "business capital" (it is!).
Specific to the Fashion Industry
The idea of starting a business is pretty daunting. It seems like such an impossible task, and it's taken me about four years to get my act together and go for it. I'm certainly no expert, but I hope my experiences can be helpful to others who may be in the same position.
First Steps: What type of business am I going to be, anyway? The four main types are Corporations, Limited Liability Corporations (LLCs), Partnerships, and Sole Proprietors. Since I am going to run my business individually, with no employees, I'm a Sole Proprietor. I'll have room to grow later on, and won't have to fill out as much paperwork in the beginning. The only real disadvantage is that if my business is unsuccessful and I owe too many debts, collectors can go after my personal assets. If I become an LLC later on, I'll have much more protection, but for now I'll be smart with my money and investments, and hopefully won't have to worry.
How much paperwork do I have to deal with? I've made a list of everything required to run a business in California. This shouldn't be too different for other states, but check to make sure!
- Fictitious Business Name/DBA (County) - This is the legal name of your business, and this document is filed with the county in which you are doing business. Upon receiving the forms back from the county, you're required by law to take out a classified ad for 4 weeks announcing your new business. For a Sole Proprietor this should cost <$100.
- Seller's Permit (State) - In order to sell a product in California you need a Seller's Permit. It is obtained from the State Board of Equalization. You must file this in person in order to meet with a representative who will verify your information and let you know how often you need to file taxes. In CA the Seller's Permit is free.
- Business License (City) - This is required by the city in which you do business, even if your business is run out of your home. It is obtained from the Chamber of Commerce. In my city I can file online, and for me this is the most expensive filing, >$150. The tax needs to be paid yearly or your license is revoked.
- EIN (Federal) - An EIN is your Federal Tax Identification Number. Sole Proprietorships do not require an EIN (you can use your Social Security Number) but since it's free, it's a good idea to get one anyway. It would also make it easier for your company to grow, since all other types of businesses need an EIN. EINs are assigned by the IRS.
Get a PO Box. When your FBN information is published, it's public record. If you're running your business from your home, unless you want your home address published, use the PO Box as your Business Address. This also makes it very easy to separate business correspondence and banking from personal correspondence and banking.
Set up Business Banking. Once you have the FBN paperwork filed you can open a Business Bank Account. This is the only document the bank needs in order to open your account aside from obligatory personal info. It helps to have the EIN as well when you set up your account, but for a Sole Proprietor this isn't required.
Find a CPA. I went to Art School so I'd rather not deal with tax deductions and complex legal filings related to money. A CPA will take care of all your business finance requirements and make sure you can write off that $1500 Nikkor Lens as "business capital" (it is!).
Specific to the Fashion Industry
- RN If you are going to be selling Tshirts or any other apparel, you need an RN (Registered Identification Number). The application is free and can be filed online with the FTC.
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By Rudy Land on April 3, 2008
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The Rudyland Premier Collection for FW 08 is in production right now.
By the numbers:
Days until LA Market: around 50
- 9 original designs
- 2 unique patterns exclusive to Rudyland
- 50 shirts total - 25 Men's & 25 Women's
- 4 colors - black, white, and two pantones
- 3 special thread colors used, since having black thread on a black shirt is boring!
