# Aquiring an LLC/DBA to lock Company Name prior to starting???



## nikko (Nov 14, 2011)

I have a question in regards to start up. Currently I have a couple of designs ready to go. Still need to decide on whether I will start off with the Screen Print Process or Heat Press. Although the Screen Preen Process seems to be the favored way of creating shirts. Now before I get things rolling my concern was locking in my LLC/DBA. If I am still in the process of getting my designs to look good and finalizing a method is it a good idea to do my LLC/DBA now even though I am not ready to sell my product? Are there pro's and cons' to getting all the paperwork done now even if lets say things wont go into production till another month maybe 2?

I will be working out of my home and understand that in VA I need to acquire a Home Occupancy Permit. Registering my business name through the county, Attain LLC/DBA which will also give me my Tax numbers needed. If I am doing the paperwork now just to solidify will it be bad if I dont make a sale till after a while? or should I just do my product first, decide which method of print suits my designs, and then do the paperwork. 

Also does the LLC require you furnish a product of what you are selling or is that only for TradeMarking?


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## BigTonyOfDC (Nov 9, 2011)

Whats up Nikko,

I'm just getting started too, luckily we have this forum, and my sister is a CPA and I JUST talked to her about this. You definitely want to establish the LLC now, that process takes time, so by the time you paperwork gets finished you just might be at that 2 month mark. But I dont see any negatives to establishing first and having to wait on a design.

You wont need a design to establish your business though. Good luck! What part of Va are you in? I live in Largo, Maryland.


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## nikko (Nov 14, 2011)

Hey Tony, Im actually in Fairfax VA. Thanks for the advice your sister provided. I am definitely excited to get things squared away and although I am in no rush I do want to take my time with the corrected paperwork. My concern was whether or not I had to start making sales right away but i figured as long as I have my company name legitimized than I can slowly work my way into production and then sell.


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## BigTonyOfDC (Nov 9, 2011)

No problem Nikko,

Another advantage of doing it sooner rather than later is if you get things done by 12/31, you can write off your expenses come tax time. So all the money you spend on equipment, supplies, driving to pick up supplies, a portion of your associated bills (electricity, internet, etc)... I havent gotten to that step yet though.


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## nikko (Nov 14, 2011)

Yea I heard about being able to tax write off pretty much everything business related. IE Cell Phone, Transportation, even partial mortgage (If working out of your home and based on your sq footage that you actually use for the business)

I actually have another question if you dont mind answering them. Once all the paperwork is in the works, you received your tax ID number, you go an open a Business Account is it possible for me to transfer money from my personal account into the business account so that when I do need to purchase equipment or make payments it is recorded as being from the business account rather than my personal account?

My second question is which method of Print do you prefer? I am debating between 2 which is the screen print and Heat Press with Plastisol heat transfer. My thing with Screen Print is that it will be a bit of a process going through the transparency, the emulsion, the lightbox, then the paint and cure process. But supposedly the quality is that the ink will blend nicely with the shirt thus creating a smooth finish. With the Plastisol Transfer I just send out my designs to a place that will take my designs and place them into Plastisol transfer paper, ship it back to me, and then all I have to do is heat press. However my concern with this is that the quality may feel a bit thicker on the shirt itself. Once the shirt is pressed the design is already cured onto the shirt iirc. so the process is much quicker. However should I be worried that these Design companies who are doing the transfers for me, would they use my designs and sell it on their own? I mean I know I cant really protect my designs because people will eventually take them and use them. I just dont want them using my company name as this is what will be LLC'd/DBA'd. Or am i just worrying for nothing. What are your thoughts?


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## BigTonyOfDC (Nov 9, 2011)

I'm not 100% sure about the funds transfer question. I haven't started the process yet, but I know you can establish credit in the business name using the Tax ID or EIN you get as part of the process.

I just got set up this weekend with a heat press and vinyl cutter. I havent tried screen printing but I know that process is much more involved. I think it all depends on the details (# of colors, # of shirts, etc). You may want to look into a printer yourself and print your own transfers, that way no one gets your designs without buying a shirt 

Good luck, looks like we'll be going through the motions at the same time


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## designerscounty (Oct 25, 2011)

Hello Nikko
It all seems very confusing and boring as compared to the exciting and fun part of designing and selling your t-shirts, but is a necessary evil 

We incorporated in AZ and i wrote a blog article about our experience: designerscounty | How to start your t-shirt company - Setting up the company

Jon Kruse has a good article about legalities of starting clothing company, you can check it out here :Legalities of Starting a Clothing Company |

Hope this helps


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## tomagucci (Feb 24, 2009)

I did all of the LLC before selling and I wish I hadnt. I dont sell enough just to cover the LLC TAX (800 a year) and would strongly suggest not doing so unless you are already established and making a very decent income (400$ a month atleast). Or else all of the tax and filings are a very big headache, especially when you are not really selling that much.


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## nikko (Nov 14, 2011)

Thanks Tony for the advice 

DesignersCounty - THanks for the links, I will be reading those shortly


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## nikko (Nov 14, 2011)

tomagucci said:


> I did all of the LLC before selling and I wish I hadnt. I dont sell enough just to cover the LLC TAX (800 a year) and would strongly suggest not doing so unless you are already established and making a very decent income (400$ a month atleast). Or else all of the tax and filings are a very big headache, especially when you are not really selling that much.


If this were the case how would you go about selling without an LLC? This does make sense as you mentioned the 800 a year tax deal. However how would you go about doing this? The reason why I felt it was necessary to get the LLC was because if I am selling my brand I would like people and the public to know that I am legit.


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## tomagucci (Feb 24, 2009)

Depending on how far you go, but t-shirts are a pretty low priced commodity. 15-20$ for a shirt and if people really like the designs they wont care where its from. People like what they like and will buy it, even if you are selling out of your trunk or at a swapmeet. 

Look at tapout, the kid started by selling shirts he printed himself out of the trunk of his car. He got big because he found a market for his items and people liked his stuff. If your website looks relatively legitimate and have strong designs, people will not really care if you are an established LLC or not. but if its on the border and people are considering, the fact that you have an LLC might just push it over a little.

But honestly in my own opinion, if you are just selling with like a bigcartel or something like that, it is enough for people to buy the product. If I was you I would definitely hold off until I had a good stream of income and there was a need to do so.


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## gnizitigid (Jan 23, 2007)

designerscounty said:


> Hello Nikko
> It all seems very confusing and boring as compared to the exciting and fun part of designing and selling your t-shirts, but is a necessary evil
> 
> We incorporated in AZ and i wrote a blog article about our experience: designerscounty | How to start your t-shirt company - Setting up the company
> ...


Thats good read


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