How To start an online boutique?
Are you interested in learning more about how to start an online boutique? One of the first steps you need to take is making sure you are legally operating your online boutique. Some things you may need for an online shop include a sellers permit, business license, terms of service and federal tax i.d. (EIN).
Here is a checklist of things you may need to do when you launch your online boutique:
1. Choose A Business Name
Search your state directory to find a unique business name for your boutique. You will need to register your business name.
2. Choose Your Business Structure
Decide whether your boutique with operate as a Sole Proprietor with a DBA (doing business as), LLC (limited liability company), or Corporation. Read more about business structures here.
3. Obtain A Federal Tax ID (EIN)
The IRS requires you to have an EIN (Employer Identification Number) if your business retains employees or if you operate your business as a corporation or a partnership.
4. Get a Seller Permit & Sales tax ID
A seller permit could also be called a resale permit, reseller license or something else depending on your state. This type of permit is required by any business selling merchandise in many states. If you are located in a state with sales tax, you may also need a sales tax ID for paying quarterly sales tax. Contact your state business department to learn more about the exact requirements where you live.
5. Determine your brand & ideal customer
Determine what type of clothing your online boutique will sell and who your target audience is. Design your brand to reflect your style and attract your target market.
6. Find Inventory
Finding wholesale clothing is something you will need to do before launching an online boutique. Reliable, high-quality inventory is something you will have to search for. Make sure the clothing you select aligns with your brand and target audience.
7. Purchase a Domain Name
Search for a domain name that matches the name of your online shop. GoDaddy often runs specials for a $0.99 domain name the first year. Search google to check for special offers.
8. Choose an E-commerce Platform
Choose an ecommerce platform for your online boutique. Compare selling platforms to find one that is customizable with the most capabilities. Personally, my favorite e-commerce platform is Shopify - it is user friendly and has many capabilities ideal for operating a successful online shop.