To sell clothes in the United States, you don’t need a single “clothing license,” but you do need a combination of a state sales tax permit and a local business license at a minimum. If you sell children’s apparel, import from overseas, or operate under a brand name, more requirements stack on top. So the honest answer to whether you need a license to sell clothes is yes, usually more than one, and the specific mix depends on where you sell, what you sell, and how you source it.
Federal labeling law also applies to every garment regardless of your business size, and that’s the piece first-time sellers most often miss.
The Core Licenses Almost Every Clothing Seller Needs
Three registrations form the baseline for a lawful clothing business in the U.S. A fourth, the EIN, is technically optional for solo sellers but hard to avoid in practice.
State Sales Tax Permit
If you sell in any of the 45 states (plus D.C.) that collect sales tax, you need a seller’s permit, sometimes called a sales tax permit or sales tax license. It authorizes you to collect sales tax from customers and remit it to your state’s department of revenue. Five states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. The permit itself is usually free or costs a small fee.
The same permit doubles as a resale certificate, which lets you buy inventory from wholesalers without paying sales tax on those purchases. You give the wholesaler your certificate number and they exempt the sale. This only works for goods you actually intend to resell. Using a resale certificate for personal purchases can trigger back taxes, interest, penalties, an audit, or in bad cases criminal charges and revocation of your permit.
Local Business License
Nearly every city or county requires a general business operating license before you can legally sell within its borders, and this applies whether you have a storefront or sell entirely online. You apply through city hall or the county clerk’s office. Annual fees range from under $50 in smaller municipalities to several hundred dollars in larger cities.
Selling from home usually adds a home-based business permit. These permits enforce residential zoning rules, which commonly restrict customer foot traffic, exterior signage, and how much inventory you can store on-site. Some zoning ordinances allow only samples at a residence, so if you’re planning to warehouse bulk stock in a spare bedroom, check the rules first.
DBA if You’re Using a Brand Name
If you operate under any name other than your own legal name, you need to file a fictitious name registration, commonly called a “Doing Business As” (DBA). A sole proprietor selling under a brand rather than a personal name has to file this before conducting business under that name. Filing is usually at the county or state level, and fees generally run between $25 and $50.
A DBA doesn’t create a separate legal entity; it just gives you the right to use the name and is typically required to open a business bank account in that name. Registrations expire in most jurisdictions, with renewal periods averaging around five years, though some places require annual renewal and others none at all. Missing a renewal can mean losing the name, so note the expiration date when you file.
EIN From the IRS
Corporations and partnerships are required to have an Employer Identification Number. A sole proprietor with no employees can use a personal Social Security Number, but an EIN is usually needed to open a business bank account or set up wholesale accounts. It’s free directly through the IRS website and takes minutes. The IRS warns against third-party sites that charge a fee for something you should never have to pay for.1Internal Revenue Service. About Get an Employer Identification Number
Federal Labeling Rules Apply to You Even Without a “License”
Every garment sold in the U.S. must carry a label with three categories of information: fiber content, care instructions, and the identity of the company responsible for the product. This applies whether you manufacture the clothes, hire a contractor, or import finished goods. Bad labeling is treated as a deceptive trade practice under the Federal Trade Commission Act, and willful violations can bring fines up to $5,000, imprisonment up to one year, or both.2Federal Trade Commission. The Textile Products Identification Act
Fiber Content
The Textile Fiber Products Identification Act requires labels to list every fiber that makes up 5% or more of the garment’s weight, in order from most to least predominant, with percentages. A shirt that is 60% cotton and 40% polyester must say exactly that. Fibers under 5% are listed as “other fiber” unless they serve a clear functional purpose, such as a small amount of spandex for stretch.3Office of the Law Revision Counsel. 15 USC 70b – Misbranded and Falsely Advertised Textile Fiber Products The label must show the name of the manufacturer or the company marketing the product, or a Registered Identification Number (RN) issued free by the FTC that substitutes for the company name.4Federal Trade Commission. Registered Identification Number – Frequently Asked Questions
Care Instructions
The FTC’s Care Labeling Rule requires a permanent care label on textile clothing before it’s sold. It has to include either a washing instruction or a dry-cleaning instruction (or both), along with drying, ironing, and bleaching guidance where relevant. If a garment can’t be cleaned by any method without damage, the label must say so. The label needs to stay attached and accessible throughout the life of the product.5eCFR. 16 CFR Part 423 – Care Labeling of Textile Wearing Apparel
Country of Origin
Labels must show the country where the product was manufactured or processed.6Federal Trade Commission. Apparel and Labeling “Made in USA” is a strict standard: the product must be “all or virtually all” made domestically, with final assembly, all significant processing, and virtually all components originating in the U.S.7Federal Trade Commission. Complying with the Made in USA Standard
All clothing also has to meet federal flammability standards under the Flammable Fabrics Act, which classifies textiles by burn behavior and prohibits the most flammable class from being used in clothing at all.8U.S. Consumer Product Safety Commission. Flammable Fabrics Act Fabric mills and importers typically handle certification at their end, but as the seller you’re responsible for what you put on the market.
Children’s Clothing Has Much Heavier Requirements
Selling apparel for children 12 and under triggers a separate regulatory layer. The Consumer Product Safety Improvement Act (CPSIA) treats any product designed primarily for that age group as a “children’s product” subject to mandatory safety rules, third-party testing, and certification.9U.S. Consumer Product Safety Commission. The Consumer Product Safety Improvement Act Domestic manufacturers and importers must issue a written Children’s Product Certificate (CPC) for every product, documenting compliance.10U.S. Consumer Product Safety Commission. Children’s Product Certificate
Accessible components can’t contain more than 100 parts per million of lead.11U.S. Consumer Product Safety Commission. Total Lead Content The CPSC has determined that plain, unadorned textiles don’t need third-party lead testing, which cuts the burden for basic garments like solid-color cotton shirts.12U.S. Consumer Product Safety Commission. Clothing – Business Guidance FAQ Garments with screen printing, metallic snaps, rhinestones, or other non-textile components may still require testing.
Children’s outerwear has additional drawstring rules. Hood and neck drawstrings are banned entirely on upper outerwear in sizes 2T through 12. Waist and bottom drawstrings on sizes 2T through 16 can’t extend more than 3 inches outside the drawstring channel when fully expanded, and can’t have toggles or knots at the free ends.13U.S. Consumer Product Safety Commission. Drawstrings in Children’s Upper Outerwear
Selling Online Means Sales Tax in Other States
If you sell online, you may owe sales tax in states where you have no physical presence. The Supreme Court’s 2018 decision in South Dakota v. Wayfair, Inc. held that states can require remote sellers to collect sales tax based on economic activity alone, meaning sales volume into that state, even without a warehouse, office, or employee there.14Supreme Court of the United States. South Dakota v. Wayfair, Inc.
The most common threshold is $100,000 in sales revenue into a single state within a year, though some states set higher bars. A handful still use a transaction-count trigger (often 200 transactions), but more than a dozen states have dropped that measure since 2020 and rely on revenue alone. Some require both revenue and transaction thresholds to be met simultaneously. Platforms like Amazon and Etsy collect and remit sales tax on your behalf in certain states, but you’re still responsible for knowing where you have nexus and whether the platform covers your obligations there. Because these rules change frequently, check each state’s revenue department before assuming you’re clear.
Importing Clothing Adds Customs Requirements
If you source inventory from overseas, U.S. Customs and Border Protection (CBP) imposes another layer. Imported clothing, new or used, is subject to duties, country-of-origin marking, and formal entry procedures. You or a licensed customs broker must file an entry within five days of the goods arriving at a U.S. port, and a customs bond must be posted along with the formal entry documents.15U.S. Customs and Border Protection. What Are the Requirements to Import Used or Worn Clothing into the United States Shipments through an express courier service usually require a customs broker to clear on your behalf.
Used clothing is taxed based on fair market value; a receipt from a secondhand market can establish declared value. Some used garments classified as “worn clothing” under Harmonized Tariff Schedule heading 6309.00.00 may qualify for duty-free treatment, but only if they show noticeable signs of wear and enter in bulk packaging like bales or sacks.15U.S. Customs and Border Protection. What Are the Requirements to Import Used or Worn Clothing into the United States Imported clothing still has to meet the same FTC labeling and CPSC safety rules as domestic goods.
Trademark Registration Is Optional but Worth Considering
Registering a trademark isn’t required to start selling, but it’s how you protect a brand name and logo from being copied. Clothing, footwear, and headgear fall under Trademark Class 25 at the U.S. Patent and Trademark Office. The current filing fee is $350 per class of goods.16United States Patent and Trademark Office. Summary of 2025 Trademark Fee Changes If your brand spans related products like jewelry (Class 14) or handbags (Class 18), each additional class carries its own fee.
Federal registration gives you nationwide priority over the brand name and the ability to sue infringers in federal court. Copyright is a separate question. The garment itself can’t be copyrighted because clothing is considered a “useful article,” but original artwork printed or woven into the fabric can be. Simple geometric patterns may not clear the originality threshold; distinctive graphics and illustrations generally do.