New York State is the seventh-most densely populated and fourth-most populous state in the US. Spread over an area of 54,555 square miles, New York has an estimated population of over 8.5 million residents and is home to the country’s most populous city: New York City. The State of New York consists of major cities, which include Albany, Buffalo, Syracuse, Yonkers and Rochester.
New York State is a hub for international business and houses several multinational institutions, including partnerships, corporations and limited liability companies. New York City is the leading financial centre of the world and has a thriving digital media, information technology, software development, biotechnology, architecture, game design, tourism, as well as film and television industry. It’s also a renowned fashion capital, making it an ideal location for your clothing startup.
The location of your fashion shop can either make or break your business. Hence, it’s extremely important to choose a property that is located in a populous area, with access to similar businesses.
New York is home to several shopping and commercial districts, including Columbus Circle, Fifth Avenue, South Street Seaport, Armory Square, Wolf Road, Colonie Center, Franklin Avenue as well as Park Avenue. Some of the largest shopping malls are also located in the state, particularly in New York City, such as the Westfield Garden State Plaza and Roosevelt Field.
Since these areas are convenient to shoppers, setting up your startup in any one of them may work for your fashion shop. However, even so, you should conduct your research to find out where you can attract maximum customer traffic. Once you have found an interesting spot, don’t forget to inspect it thoroughly before signing any papers.
Obtaining a Legal Status
The legal business structures in New York State are as follows:
- Limited Liability Company
- Sole Proprietorship
- Limited Partnership
- General Partnership
People today still prefer sole proprietorship over other forms of organization. However, it’s important to note that there are limitations of resources and size, which could prevent your fashion shop from growing to its full potential. Although you won’t face these issues with a partnership, neither of them will protect you from personal liability.
If you’re fashion savvy individual yourself, running a fashion business shouldn’t be much of a problem, but let’s not rule out the probability of a customer getting hurt, or their belongings getting damaged on your premises. By choosing a legal status that can protect you from personal liability, you won’t have to pay compensation from your own pocket. Learn more about choosing a business structure here.
Income tax doesn’t apply to professional corporations in New York State. However, owners of partnerships, sole proprietorships and Limited Liability Companies are required to pay taxes on all profits made by their business at their individual income tax rates. Other taxes you will have to pay include:
- Disability Insurance
- Worker’s Compensation Insurance
- Unemployment Insurance Tax
- Employment Tax
- Sales Tax
State & Municipal Licenses and Obligations
Even if you are operating as a sole proprietor, it’s recommended that you obtain a federal tax ID number. For other forms of business, getting an Employee Identification Number is a requirement. This process can be easily completed online by visiting the IRS website. You will also have to register for sales tax. Note that other permits or licenses may also be necessary, depending upon the details of your business.
For the smooth and efficient operation of your business, you will have to hire sales persons and front-line staff. The average salary of sales representatives in New York is $66,000. Customer representative earn from $22,433 to $48,455. In addition, make sure you don’t go below the minimum wage threshold, which is $8.75 per hour.
The hiring procedure is just like any other, where you receive and review applications, interview potential candidates, and finally select the employee. However, several laws limit what you can ask during the hiring process. Learn more about it here.
Popular Clothing Styles
Now, you must decide the kind of clothes you want to offer your customers. Remember, New York is the fashion capital of the world. People love to stay up-to-date with their threads, and you should stock your store with the same in mind.
Inventory Ordering and Management
Having a proper inventory have a proper inventory ordering and management system in place is essential to ensure your fashion shop is always well stocked. You can streamline this process by hiring an inventory manager and investing in good software.