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Thread: Want to run online cloth business from maryland

  1. #1

    Default Want to run online cloth business from maryland

    HI All,

    Question background:
    I want to sell clothing products(T-shirt, saree(asian cloth, Handloom)) in online from my home(in maryland). I will collect products from asian country. I will operate my business from maryland & want to sell in whole USA.
    My total investment will be around $6000 & no plan to expand more till getting success. And i am expecting less than +-10 orders/month. Even 0 or even 50 max!!

    Can anyone please help me on below points considering my above description:
    1. Am i need to open LLC? How much cost it will take?
    2. My home(stock) in maryland. If i need to ship an order to other states then am i need other licences except LLC?
    3. Does any sort of licensing is required for my such little business? Please consider i need to ship orders in different state with my website name.
    4. Is it possible to ship orders to other states without any license? What will be the risk if am not licensed.

    Will appreciate your guideline.

  2. #2
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    Disclaimer: I'm not a lawyer, and I know there are others on this site who are so hopefully they'll correct me if I say something stupid, but here's my thoughts:

    From what you describe it's not necessary to open as an LLC unless you wish to protect your personal assets in the event of a lawsuit. I can't see that being the case if you're simply selling clothing online. A sole-proprietorship should work fine for what your doing. If you start to grow and expand beyond your little one-person enterprise you might consider an LLC, but hopefully by then you'll have cash flow at that point and can consult with a lawyer or accountant for professional advice for your particular situation.

    I would guess the only license you will need is a local business license. Each locality is a little different. My best advice is to go to your local tax revenue office, describe your business, and ask what you need to operate. Business licenses are usually easy to get, and for something as small as your operation they should not be expensive. Selling across interstate lines should not require any additional licenses. However, you might need to collect sales tax for orders that are sold within Maryland. Your tax office should be able to fill you in on all the local rules.

    Good luck.

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