Choosing to start your own fashion line can be a hard enough task, but how do you legally sell your clothing online? What do you need to do to make sure that you’re in compliance with all local and federal laws?
To Legally Sell Your Clothes Online:
- Pick your business name and your legal structure.
- Make sure you have appropriate insurance.
- Acquire the appropriate licenses.
- Create your product line.
- Create your selling platform.
While it doesn’t have to be hard, there are steps you need to take before you can start selling your fashion line online. What do you need to include? What do you need to have to plan ahead? Read on to find out more.
Pick your business name and your legal structure

There are a few steps you need to take to make sure you’re legally above board when you start selling your clothing line online. Most of this information can come down to your business plan and what you put into it—and how you implement it.
Firstly, you will need to pick a business name. While this does not necessarily fall into the legality aspect of selling your clothes online, to make sure your business is trusted and easily found, you need to create a business name. You also need it to file certain documents to solidify your legal status.
Secondly, sort out your legal structure. In order to file for the appropriate permits, you’re going to need both your business name and your legal structure. What does this mean? You need to decide how your business will function. Most, especially those selling online, will choose to become a limited liability company. This means that your personal assets and your business assets will be separate, so if any legal action is pursued, your personal assets will not be in danger.
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Make sure you have appropriate insurance
Another item that doesn’t feel like it should play into legally selling your items online is your insurance status. The main point of this is to make sure you’re covered if something goes wrong—and just like any store, just because you’re selling online doesn’t absolve you of liability.
Make sure your business is ensured before you start selling online to protect both you and your business assets.
Acquire the appropriate licenses
This is your main portion of making sure you can sell your clothing line online legally. In many cases, you will need to consider the same licenses that physical businesses will need before they open up their storefront. While these business licenses are not always specific, you should consider getting a business license and a Federal employee identification number for taxes. Even if you’re just starting as a self-employed business owner, you will still need to make sure you’re paying the proper taxes.

In addition to your business license and your federal EIN, you should be considering whether you need a garment or apparel certificate. Again, this varies from city to city and jurisdiction to jurisdiction, but you should look into whether you need one where you are located.
You should also receive a seller’s permit or certificate of authority. These permits will make sure that you are within your legal rights to sell online or in person. Again, these licenses vary from location to location.
Another way to license your clothing brand to truly protect what you’re selling online is pursuing your own trademark. While the time commitment of doing so can be several years and is not necessary when you start selling your clothing line, it is something that can protect you from copyright infringement down the line.
First, you should always consider working through a patent and trademark lawyer. They will help guide you through the process and can even do much of it for you. Then, consider existing branding. You may have to change your name, logo, or any other branding items if it is infringing on any other existing branding. Next, create an account with the U.S. Patent and Trademark office website. You can start compiling your information and, once submitted, wait until you can file a statement of use form. After that is approved, you are fully licensed to use your trademark and seek litigation on anyone who may be using it without your permission.
Create your product line
Without your own product line, there’s nothing for you to sell online. Make sure that you include this information in your business plan and implement what you originally sought out to do. If it shifts, be sure to include that information in your business plan.
What’s the most important to decide? Here, it’s everything. Your product is what your customer is looking for, so you need to decide on exactly what you’re creating, how you’re going to create them, what supplies you’re going to use, what manufacturer you’re going to go with (unless you’re creating those items by yourself!) and decide on sizing and quantities.
One caveat to note is that if you’re working with a manufacturer and just starting out, consider a minimum quantity order manufacturer. You don’t want more inventory than you can handle when you’re just starting out, and you can always go ahead and purchase more. If you’re looking for a good manufacturer, consider search sites such as Maker’s Row, Common Objective, Sqetch, and Kompass.
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Create your selling platform

Arguably your most important section, you need to consider your selling platform. This could be something as simple as using Instagram to sell your clothing or as elaborate as your own setup on your own domain name online.
In many cases, if you’re trying to sell your clothing line to the largest group you can, you should be considering using one of the following websites.
- Amazon
- Big Cartel
- eBay
- Etsy
- Magento/Adobe Commerce
- Shopify
- WooCommerce.
Any of these are options when you’re trying to sell online, and some will even create a function where you can add your existing shop to a website, meaning you can drive traffic to your set domain name. From there, you can also set up your point-of-sale system, which can be much easier when you’re using one of these apps or websites.
How To Legally Sell Your Used Clothes Online
If you’re not looking to sell your clothing line, but rather your used clothes, you’re also in luck. While you don’t have to go through all the steps listed above, there are certain ways that you can make sure you get the most money for your clothing, all while staying above board.
There are a few apps you can use to sell your used clothing online, including:

- Instagram or Facebook. These social media giants usually have some sort of marketplace for you to sell your items.
- LePrix. Focusing on reselling luxury and name brand items, you can easily buy and sell off this website.
- Poshmark. With this website, all you have to do is take photos of your items, set a price, and wait for someone else to purchase them. They do have a commission fee.
- Tradesy. A similar setup to Poshmark, it focuses on reselling women’s luxury and designer clothing. If someone wants to make a return, though, you get your money, and they keep the item instead.
- ThredUp. A different sort of setup to the others, all you have to do is send them your clothing and once it’s sold, they’ll send you the check, minus their commission.
Whether you’re selling your clothing line or trying to make room for more, there are steps you can take to make sure you’re protected. Make sure you do your research beforehand, focus on reading the fine print, and you too can make a profit from your clothing brands, new or old.
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Related Question
Can I sell my clothing internationally?
Yes, you can, if you are willing to negotiate on shipping. Depending on your business, you can sell anywhere in the world. One item to note that if you do seek out a trademark acquisition, this only will cover you within the United States. If you find yourself doing business within another country and want your brand protected, consider searching on how to apply for trademark status in that country.
Do I need much inventory to start my clothing line?
No, not much inventory is needed—in fact, you are encouraged to keep your quantities low in order to protect your budget. Have several samples in each size and make sure you have enough to take photos of your items and show off online. You can also take preorders of your clothing to make sure you have enough on hand for the demand.
How can I successfully sell clothing online?
There are three tips you should consider when selling your clothing online. First, take well lit photos. Since your items are not in person, your potential buyers will need to get a good look at what they’re considering. Second, make sure your descriptions are detailed. Explain the sizing, brand, fit, etc. Thirdly, make sure you’re realistic about the prices you set. Don’t undersell, but also don’t create a markup so high no one will purchase your items.
To learn more about how to start your own fashion clothing line check out my startup documents here
Please note: This blog post is for educational purposes only and does not constitute legal advice. Please consult a legal expert to address your specific needs.

Meet Shawn Chun: Entrepreneur and Fashion Business Fan.
I’m a happy individual who happens to be an entrepreneur. I have owned several types of businesses in my life from a coffee shop to an import and export business to an online review business plus a few more and now I create online resources for those interested in starting new ventures. It’s demanding work but I love it. I do it for those passionate about their business and their goals. That’s why when I meet a designer or boutique owner at a craft fair, farmers market, retail location or anywhere else I see myself. I know how hard the struggle is to retain clients, find good employees and keep the business growing all while trying to stay competitive.
That’s why I created Fashion Business Boss: I want to help fashion business owners like you build a thriving business that brings you endless joy and supports your ideal lifestyle.