- Joined
- Nov 24, 2015
- Messages
- 49
Rep Bank
$345
$345
User Power: 176%
So I've been rethinking my business structure. I thought I run it by some of you guys who may have some experience in this area. I will also be consulting a corporate attorney on this but I wanted to reach out to other ecommerce folks as well. This is long so feel free to jump to the questions at the end.
Like a lot of you I run a physical products business that imports from various parts of the world and also domestically (from the USA). We brand these products and sell to some small stores and on various websites including our own website, Amazon, eBay, etc
I'm wondering if I should setup two separate business entities... one for import / export and one for the ecommerce / retail side of the house.
The reason being is for separation of the two entities for liability and to keep the import records off the ecommerce side.
My current structure:
Amazing Widgets HQ (Hypothetical name)
Currently I only have the one business and the business name is the same name as the brand. As an example we will say it's Amazing Widgets HQ. So I import under Amazing Widgets HQ, main website is Amazing Widgets HQ, all of my product names have this as their brand name etc.
Turns out there is a bigger brand that has a trademark on the name Awesome Widgets and per two different trademark attorneys I have a less than 20% chance of getting a trademark for Amazing Widgets HQ because a similar mark is already in use. The additional risk here is that if Awesome Widgets decides I'm infringing on their mark they could serve me a cease and desist and I could be caught in a bad spot. Potentially disastrous if they force me to liquidate my inventory in X amount of days. I don't want to be caught in that situation.
They both have recommended a rebrand. Bummer, especially since sales have started to pick up nicely with Amazing Widgets HQ. I also need to figure out how to move my existing products over to this new brand that I need to make (new brand registry etc). For Amazon at least I think I just need to apply for a new brand for brand registry and switch over the business details.
So here's my current plan which I plan to run by the attorney and my accountant.
Setup a new LLC called something along the lines of:
Widgets Trading LLC (New Import / Export Business)
Use an address at the local UPS and put myself and a partner on the business. My current business has my house as the address and I’m the sole person on the business. Another rookie mistake apparently. This business would only be used for import / export / buying / trading and developing new products.
Widgets Brands LLC (New Ecommerce Business. Holding company?)
Again a separate address. This business would be known to the retail side of the house. Walmart, Amazon, maybe even a customer facing website. I would put trademarked brands underneath this main ecommerce business. Something like www.widgets123.com would be trademarked but would belong to Widget Brands LLC.
Create a new more distinct brand name and apply for the trademark which I will roll underneath Widget Brands LLC. Rebrand website, Facebook, Instagram, apply for brand registry and start migrating my existing products over to this new brand.
Transfer funds out of my old Amazing Widgets HQ LLC into new Widgets Brands LLC (holding company) and shutdown the old business.
TL;DR
1) What's the best, most scaleable, safest way to structure an import / ecommerce businesses? The goal in mind with eventual sale of brand(s) or the entire business itself.
2) What's the easiest structure if you are planning on selling one of your brands but not your entire import business?
3) Would you name your ecommerce business the same name as your brand or would you go more generic for the business itself?
Since I'm going through a rebrand anyway I'd rather do this right the first time. I didn't have a clue what I was doing when I started so I'm trying to get this cleaned up now.
Like a lot of you I run a physical products business that imports from various parts of the world and also domestically (from the USA). We brand these products and sell to some small stores and on various websites including our own website, Amazon, eBay, etc
I'm wondering if I should setup two separate business entities... one for import / export and one for the ecommerce / retail side of the house.
The reason being is for separation of the two entities for liability and to keep the import records off the ecommerce side.
My current structure:
Amazing Widgets HQ (Hypothetical name)
Currently I only have the one business and the business name is the same name as the brand. As an example we will say it's Amazing Widgets HQ. So I import under Amazing Widgets HQ, main website is Amazing Widgets HQ, all of my product names have this as their brand name etc.
Turns out there is a bigger brand that has a trademark on the name Awesome Widgets and per two different trademark attorneys I have a less than 20% chance of getting a trademark for Amazing Widgets HQ because a similar mark is already in use. The additional risk here is that if Awesome Widgets decides I'm infringing on their mark they could serve me a cease and desist and I could be caught in a bad spot. Potentially disastrous if they force me to liquidate my inventory in X amount of days. I don't want to be caught in that situation.
They both have recommended a rebrand. Bummer, especially since sales have started to pick up nicely with Amazing Widgets HQ. I also need to figure out how to move my existing products over to this new brand that I need to make (new brand registry etc). For Amazon at least I think I just need to apply for a new brand for brand registry and switch over the business details.
So here's my current plan which I plan to run by the attorney and my accountant.
Setup a new LLC called something along the lines of:
Widgets Trading LLC (New Import / Export Business)
Use an address at the local UPS and put myself and a partner on the business. My current business has my house as the address and I’m the sole person on the business. Another rookie mistake apparently. This business would only be used for import / export / buying / trading and developing new products.
Widgets Brands LLC (New Ecommerce Business. Holding company?)
Again a separate address. This business would be known to the retail side of the house. Walmart, Amazon, maybe even a customer facing website. I would put trademarked brands underneath this main ecommerce business. Something like www.widgets123.com would be trademarked but would belong to Widget Brands LLC.
Create a new more distinct brand name and apply for the trademark which I will roll underneath Widget Brands LLC. Rebrand website, Facebook, Instagram, apply for brand registry and start migrating my existing products over to this new brand.
Transfer funds out of my old Amazing Widgets HQ LLC into new Widgets Brands LLC (holding company) and shutdown the old business.
TL;DR
1) What's the best, most scaleable, safest way to structure an import / ecommerce businesses? The goal in mind with eventual sale of brand(s) or the entire business itself.
2) What's the easiest structure if you are planning on selling one of your brands but not your entire import business?
3) Would you name your ecommerce business the same name as your brand or would you go more generic for the business itself?
Since I'm going through a rebrand anyway I'd rather do this right the first time. I didn't have a clue what I was doing when I started so I'm trying to get this cleaned up now.
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Last edited:
Membership Required: Upgrade to Expose Nearly 1,000,000 Posts
Ready to Unleash the Millionaire Entrepreneur in You?
Become a member of the Fastlane Forum, the private community founded by best-selling author and multi-millionaire entrepreneur MJ DeMarco. Since 2007, MJ DeMarco has poured his heart and soul into the Fastlane Forum, helping entrepreneurs reclaim their time, win their financial freedom, and live their best life.
With more than 39,000 posts packed with insights, strategies, and advice, you’re not just a member—you’re stepping into MJ’s inner-circle, a place where you’ll never be left alone.
Become a member and gain immediate access to...
- Active Community: Ever join a community only to find it DEAD? Not at Fastlane! As you can see from our home page, life-changing content is posted dozens of times daily.
- Exclusive Insights: Direct access to MJ DeMarco’s daily contributions and wisdom.
- Powerful Networking Opportunities: Connect with a diverse group of successful entrepreneurs who can offer mentorship, collaboration, and opportunities.
- Proven Strategies: Learn from the best in the business, with actionable advice and strategies that can accelerate your success.
"You are the average of the five people you surround yourself with the most..."
Who are you surrounding yourself with? Surround yourself with millionaire success. Join Fastlane today!
Join Today
