My job is to advise not to criticize. Therefore, I find it very important that my advice reaches fashion entrepreneurs before theymake unnecessary mistakes.
One shall incorporate at the onset of starting their business. The reason being is that if you don’t incorporate and do business as an individual, you will be personally liable for any issues and lawsuits that may arise. Businesses are tricky, so I recommend protecting yourself as much as possible. Also, incorporating can help you save money on taxes (an accountant can guide you more on this topic).
Many of my clients come to me with a name or logo that they want to trademark; meanwhile, they have already invested a lot of money into this name or logo for marketing and production services. If this name or logo is similar to that of another registered trademark or other issues arise, one cannot or will have problems, registering their mark(s) with the United States Patent and Trademark Office and obtaining protection. Thus, all of the money spent on branding and production is wasted because the business owner will need to come up with a new business name and logo in order to avoid being sued and build a strong brand name.
Every company needs multiple contracts. At the initial stage every company shall have an operating agreement or some form of a partnership agreement (based on type of business entity) if there are partners in the business. It doesn’t matter if your partner is your father, sister or someone you really reallyyy trust. Unfortunately, money ruins many relationships and people sue each other all the time regardless of their relationship.
Furthermore, many designers hire photographers, stylists and etc. If anyone is borrowing your goods, you must have them sign a contract so that you get your items back. Also, if a Designer hires an individual, they must have the individual sign an Employment Contract that is specifically drafted for their business.
Lack of contracts has caused many of my client’s problems and headaches that could have been avoided. Please take the proper legal steps and contact us at email@example.com to have your company properly protected.