Choosing the right business structure for your fashion brand?

Launching a fashion brand goes far beyond creativity — it requires a solid legal foundation. The choice of the right business structure will directly impact taxation, governance, partner responsibilities, and the growth potential of your brand.

Under Brazilian law (Civil Code – Law nº. 10.406/2002), entrepreneurs can choose different types of business structures. The most common include:

• Sole Proprietor (Empresário Individual) – Recommended for those starting alone. However, there is no separation between personal and business assets, which increases financial risk.

• Single-Member Limited Liability Company (SLU – Sociedade Limitada Unipessoal) – Created by the Economic Freedom Law, it allows one individual to operate with limited liability, ensuring asset protection. A modern option for independent designers or entrepreneurs launching their own brands.

• Limited Liability Company (LTDA) – Widely used in the fashion sector. It allows two or more partners to clearly define responsibilities and rules in the articles of association. A strategic option for small and medium brands with expansion plans.

• Corporation (S.A.) – Recommended for large fashion brands, especially those aiming to attract investors or eventually go public. It ensures strong governance and scalability.

Why does this matter in fashion law?

Because the chosen structure will influence not only the brand’s internal organization but also its ability to attract partnerships, investments, and legally protect intangible assets such as trademarks and collections.

With specialized Fashion Law advisory, your brand can align legal structures with business strategy, building a strong foundation for sustainable growth.