Creating Your Footwear Company

Creating Your Footwear Company

When should you legally create your company?

You need to be legally creating your shoe company at the time when you hire people to provide services and start spending money. Up until this point your shoe brand is just an idea on paper. While it may exist in your mind, or on a note pad, once you need to start spending money, it’s real!

Your shoe company needs a name

Your shoe company name does not need to be the same as the brand name you put on your shoes. It can be, but it’s not required. If you think you may have more brands in the future, then pick something different. People often confuse the “company” name with the “brand” name. They are not the same. Think of a huge company like Proctor & Gamble TM. This company owns hundreds of different brand names, like Tide™, Pampers™, Cascade™, Braun™, Dawn™ and dozens of others. You can call your company almost anything you want, except a name that has already been taken. Often, a company with several brands will change its name to be the name of its most popular product.

What type of company?

Your new shoe company will need to be a legal business and be registered with the government. In the USA there are several options. The sole proprietorship and the limited liability company (LLC) are the most common for start-ups.

Sole Proprietorship for footwear

The sole proprietorship is the easiest company to set up. YOU are a sole proprietorship. You don’t need to file any tax paperwork. Although you still need to get local permits and licenses to legally do business. The sole proprietorship is simple as it is just YOU. Your personal finances are the company’s finances. Should something bad happen to your footwear company, it’s actually happening to YOU.

Learn more about starting a footwear Sole Proprietorship and the following topics in the book, How to Start Your Own Shoe Company.

Limited Liability Company (LLC) advantages for your shoe business

Product liability insurance for Footwear Manufacturers

Local government permits for shoe companies

Doing Business As (DBA) – Fictitious Names for your footwear brand

Seller’s permits for shoe businesses

Creating and protecting footwear trademarks

Web domains for your shoe brand