Running a lingerie or intimates business without proper licensing and compliance isn't just risky—it can end in fines, shutdowns, or legal liability that wipes out your margins. Whether you're selling bras, shapewear, sleepwear, or luxury intimate apparel, understanding what permits and regulations apply to your operation is foundational to scaling confidently.
Business Structure & Core Licensing
Start by establishing a legal business entity. Most intimates retailers operate as an LLC, S-corp, or sole proprietorship, each with different tax and liability implications. You'll need an EIN (Employer Identification Number) from the IRS—free and takes 15 minutes online—even if you're a solo operator. Next, secure a general business license from your city or county. Costs typically range from $50 to $500 depending on your location and projected revenue. This is your baseline; without it, you can't legally operate a retail, wholesale, or online storefront.
Sales Tax & Resale Permits
Every state treats apparel differently when it comes to sales tax, so verify your state's rules. Most states tax lingerie and intimates as regular apparel (6–10% sales tax), but some exempt certain categories like medical-grade compression garments. You'll need a resale permit (also called a seller's permit) to buy wholesale inventory without paying tax upfront. This permit, issued by your state's Department of Revenue, is free or costs $5–50 and takes 1–3 weeks to process. Keep meticulous records of your wholesale purchases and retail sales; audits in apparel are common.
Import & Tariff Considerations
If you source lingerie from overseas—China, Vietnam, and India dominate intimates manufacturing—familiarize yourself with tariff codes and compliance. Intimate apparel falls under HS Code 6108 (women's articles) or 6107 (men's articles). Current tariffs on most lingerie from China sit around 16–17%, but trade agreements can shift this. Work with a customs broker (cost: $200–500 per shipment) to ensure proper classification and avoid hold-ups at port. Mislabeled shipments get flagged, delaying inventory and eating into cashflow.
Labeling & Content Requirements
The Federal Trade Commission (FTC) and Care Labeling Rule mandate that every lingerie item display:
- Fiber content (percentage breakdown of materials)
- Country of origin
- Care instructions
- Manufacturer name and address
- RN number or business name for imports
Non-compliance fines start at $500 per violation and compound quickly if you're selling across state lines. Use label vendors like CJI Labels or PLC Label; costs range from $0.15–$0.50 per label depending on complexity and order volume. Print labels in-house if you're doing small batches, but invest in proper label stock—thermal transfer or woven labels look more professional and hold up in washing.
Intellectual Property & Brand Protection
Lingerie brands are built on aesthetics and trust, making IP protection crucial. Register your business name and logo as a trademark with the USPTO ($275–$400 per class). If you're designing original patterns or designs, consider design patents ($400–$800 each). Counterfeiting is rampant in intimates; protecting your brand legally makes enforcement easier if knockoffs emerge.
Workplace & Employment Compliance
If you hire even one employee—for customer service, fulfillment, or design—you need workers' compensation insurance (roughly 2–5% of payroll), unemployment insurance registration, and compliance with wage-and-hour laws. Solo operators can skip this, but the moment you hire, non-compliance becomes expensive. Document everything in writing: job descriptions, pay rates, and hours worked.
Online Sales & Data Privacy
Selling intimate apparel online means handling sensitive customer data: sizing measurements, payment info, and often health-related details (some buyers note endometriosis or recovery needs). Comply with GDPR if you ship to Europe, CCPA if you have California customers, and always use SSL encryption on your website. A basic SSL certificate is free (Let's Encrypt), but if you're processing payments, invest in PCI DSS compliance ($500–$2,000 annually for third-party validation).
Getting found by customers matters; listing your products and services on platforms like Mercoly helps you reach buyers actively searching for lingerie and intimates while building credibility through organized compliance documentation.
Frequently Asked Questions
Q: Do I need a specific license to sell bras online versus in a physical retail location? No—both require the same general business license and sales tax permit, though physical retail may have additional zoning requirements. Check with your city planning department if you're running a brick-and-mortar storefront.
Q: How often should I audit my supplier labels for FTC compliance? Audit at least quarterly or whenever you switch fabric suppliers, since fiber content can vary batch-to-batch. Many intimates retailers miss this and face fines retroactively.
Q: What's the biggest compliance mistake lingerie sellers make? Underestimating tariffs and misclassifying imports, which delays shipments and tanks cash flow during peak seasons.
Ready to scale your lingerie business with proper licensing in place? Start by mapping out your state's specific requirements and get your resale permit locked down this week.