Chapter 5: Business & Banking Structure - Building The Framework

Chapter 5 - FREE Page 1 Preview:

In this chapter we’ll be going over BUSINESS FORMATION & BANKING STRUCTURE, I know it’s not the sexiest topic to dive into, but I guarantee what you learn here will help save you tens of thousands or even hundreds of thousands of dollars. Some things we’ll be covering are:

Business & Banking Structure:

1. LLC vs. S Corp vs. DBA vs. Sole Prop – which one is best for you and how to set them up.
2. Setting up business banking, and why it should be separate from your personal banking, and what you’ll need to do it. 
3. Leveraging credit cards for free money. 
4. Business License and Resellers Permit so you can buy product without taxes added.

So first thing we’ll discuss is the Business formation - what are the actual steps you need to get stated. 

1. Choose A Name. 

We went over this in the previous chapter, hopefully you were able to settle on one. It’s relatively simple, but also very important and there are a few powerful considerations to keep in mind. As we discussed in that chapter, keep it clear and simple, but also unique enough that you won’t run into trademark conflict, or issues securing the online real estate and social domains. 

2. Business Formation. 

There are several different types, for the sake of keeping this on topic, we’ll just cover the 3 most common ones for apparel lines, and when they’re best used: 

The 3 most common ones are Sole Proprietorship, LLC, or an S-Corp. There is also something underneath a business called a DBA, which is short for Doing Business As, which can be created underneath any of the other business structures, but a DBA is not actually a separate company. 

This could be useful if you want to change the name of your brand later, you can keep you company name of 'Brand A' and file a DBA of 'Brand B' underneath it and that way you can do business as Brand B but you don’t have to change the name of your whole company. 

We’ll get a little deeper into DBA’s later on.

Total guide is 9 pages long and includes a Checklist Worksheet on Page 9.