By Eric H. Milliken, Founder of Sutter Law, a San Francisco Business Law Firm.
Table of Contents
- Set up Your Fashion Business
- Starting a Business
- Registering a Doing Business As (d.b.a.) or Fictitious Business Name.
Set up Your Fashion Business
There is a wealth of information out there about tech startups in the Bay Area and deservingly so, San Francisco is the home of some of the most influential tech companies of our time. But San Francisco is also a hub of business in general, known just as well for its diversity of culture and ideas. A huge part of San Francisco is its great shopping and fashion. Walking around the city you will encounter every type of fashion including high-end couture, effortless casual attire, amazing consignment, thrift shop finds, and wearable tech.
This blog focuses on the intersection of these two huge business industries, fashion, and startups, because the lean startup model isn’t just for tech.
Starting a Business
The first step in starting your fashion business is setting up an LLC or a corporation. These entities protect you from personal liability. LLCs are preferred for smaller, or family-run operations, they do not allow for the issuance of stock. Corporations are necessary if you want to seek investment from accredited investors. Corporations provide for the issuance of stock and can have different structures such as S corps, for smaller operations, C corps for the general corporate setup, and B corps for those companies that support a public benefit. One notable B corp is Patagonia, a giant in the clothing industry and champion of the environment.
Registering a Doing Business As (d.b.a.) or Fictitious Business Name.
If you would like to save money or want to bypass the corporation or LLC setup you can file a d.b.a. which stands for “doing business as.” In California, they are also known as fictitious business names. The filing process is inexpensive and takes about a month however you don’t have any asset protection, meaning that your personal property, money, and retirement are at stake.
Another application for a D.B.A. is to change a business name or rebrand. For example, your corporate name may be Worldwide Fashions but you may run a storefront with a different name such as San Francisco Fashions. In this case, San Francisco Fashions would need to register as a d.b.a. These names are filed with the county where the business is run.
This blog is specific to California. Furthermore, this blog is not an exhaustive analysis of the law; you should consult with a San Francisco business attorney for more information on the above topics. If you would like a free consultation with a San Francisco Business Law Attorney please reach out to us at Sutter Law.
