People 17 January 2019
Established around the mission to set a new standard for clothing, using technical fabrics, a conscious supply chain (direct-to-consumer) and innovative production process, ADAY and its founders quickly gained recognition for disrupting the fashion industry with their minimalist, meaningful designs.
ADAY's latest label, Plant Bae, is an ode to their commitment to unique production and a responsible standard, combining beech trees and seaweed to create their first plant-based fabric.
“We're continually challenging ourselves to innovate further towards a sustainable supply chain and are always exploring new resources to potentially use," says ADAY's founders, Meg He and Nina Faulhaber. Both He and Faulhaber believe in the ability to do more with less, which is also why they developed ADAY to simplify the common woman wardrobe hurdles.
The fabric is MicroModal, from the wood pulp of beech trees, blended with Icelandic seaweed fibers. Garnering inspiration from the environment spotlights both the opportunity to utilize renewable resources, as well as the positive effect of harvesting seaweed as a carbon-negative activity.
Available in three tops, the tank, t-shirt, and turtleneck satisfy the seasonal wardrobe staples and maintain ADAY's mission of simplicity. We caught up with He and Faulhaber to learn more about the motivation behind the collection, sourcing the correct materials to create Plant Bae's fabrics (which are insanely soft) and how this eco-conscious decision goes way beyond fashion.
Sustainability has always been at the forefront of ADAY's mission, but when did you decide to take it a step further and create clothing from plant-based fabrics?
ADAY: We were looking to create our first plant-based fabric but did not want to use cotton as cotton is not very sustainable. So we embarked on a journey to find a more sustainable alternative. ADAY's first plant-based fabric is a sustainable MicroModal derived from wood pulp from beech trees blended with Icelandic seaweed fibers. It's a blend that's 90% plant based with its main ingredients being sustainably sourced and manmade made (cellulosics).
Tell me about the process and the challenges to take it from paper to production?
ADAY: Our process starts with intentional design fusing simplicity and versatility. Marrying classic silhouettes with clean lines, we include only the details that are truly necessary. With each new design, we ask: How will we make our favorite staples better? How will we make them last?
Instead of following seasonal trends, we spend our time perfecting the pieces our customers love through wear-testing, customer feedback + experimentation. This allows us to keep improving each of our pieces so they can be loved even more.
What made you decide to source beech trees and seaweed for this first collection? Were there other resources considered?
ADAY: We wanted a fabric that was comfortable, soft and versatile yet felt luxurious, and matched our sustainability requirements.
MicroModal from beachwood trees is derived in a closed-loop system and has proven to be a more sustainable and better alternative to cotton. On top of that seaweed is a fun and versatile plant we are excited by. Most of the world's oxygen (about 70%) comes from seaweed, and it also makes up roughly nine tenths of all the plant-like life on Earth. Many seaweeds also contain anti-inflammatory and anti-microbial agents.
Even though the seaweed content itself is small (it acts more of a “booster" ingredient) we love that the collection shines a light on this important renewable resource.
Photo Courtesy of ADAY
Why was Plant Bae an important next step for the company?
ADAY: The collection shines a light on an important renewable resource: seaweed ecosystems are carbon-negative, and can take up to 20 times more carbon dioxide emissions out of the air than land-based forests.
And why is sustainability so important to you outside the company?
Nina: After buying a lot in my teens, and getting rid of a ton of stuff in my twenties, I adopted a much more minimalist mindset, caring more about experiences than the things I owned. With that, I also started to think a lot more about great product design and ADAY—and our beautifully minimal, yet versatile capsule—became the ultimate minimalist's dream. A few months after launching ADAY, a trip into nature, a lot of self reflection and reading two books (“Let My People Go Surfing" by Yves Chouinard and “The Upcycle" by Michael Braungart and William McDonough) truly opened my eyes about the impact business can have. Now, I couldn't imagine creating a product or company that wasn't focus on creating a better future.
Meg: In everything we do at ADAY, we consciously choose it. I think that's so important in how we live—that we choose how each part of our life fits into who we are. My partner and I made a choice this year to buy an old yellow school bus and reuse it—to convert it into a mobile, 198-square-foot solar powered home. This choice, of reuse and sustainability and custom design and self-build, made so much more sense to us than renting an apartment.
Business entities can be defined as the corporate, tax and legal structures which an organization chooses to officially follow at the time of its official registration with the state authorities. In total, there are fifteen different types of business entities, which would be the following.
- Sole Proprietorship
- General Partnership
- Limited Partnership or LP
- Limited Liability Partnership or LLP
- Limited Liability Limited Partnership or LLLP
- Limited Liability Company or LLC
- Professional LLC
- Professional Corporation
- Nonprofit Organization
- Cooperative Organization
As estates, municipalities and nonprofits do not concern the main topic here, the following discussions will exclude the three.
Importance of the State: The Same Corporate Structure Will Vary from State to State
All organizations must register themselves as entities at the state level in United States, so the rules and regulations governing them differ quite a bit, based on the state in question.
What this means is that a Texas LLC for example will not operate under the same rules and regulations as an LLC registered in New York. Also, an LLC in Texas can have the same name as another company that is registered in a different state, but it's not advisable given how difficult it could become in the future while filing for patents.
To know more about such quirks and step-by-step instructions on how to start an LLC in Texas, visit howtostartanllc.com, and you could get started with the online process immediately. The information and services on the website are not just limited to Texas LLC organizations either, but they have a dedicated page for guiding fresh entrepreneurs through the corporate tax structures in every state.
Sole Proprietorship: Default for Freelancers and Consultants
There is only one owner or head in a sole proprietorship, and that's what makes it ideal for one-man businesses that deal with freelance work and consulting services. Single man sole proprietorships are automatic in nature, therefore, registration with the state is unnecessary.
Sole proprietorships are also suited to a degree for singular teams such as a small construction crew, a group of handymen, or even miniature establishments in retail. Also, this puts the owner's personal financial status at jeopardy.
Due to the fact that a sole proprietorship entity puts all responsibilities for paying taxes and returning loans, it directly jeopardizes the sole proprietor's personal belongings in case of a lawsuit, or even after a failed loan repayment.
This is the main reason why even the most miniature establishments find LLCs to be a better option, but this is not the only reason either. Sole proprietors also find it hard to start their business credit or even get significant business loans.
General Partnership: Equal Responsibilities
The only significant difference between a General Partnership and a Sole Proprietorship is the fact that two or more owners share responsibilities and liabilities equally in a General Partnership, as opposed to there being only one responsible and liable party in the latter. Other than that, they more or less share the same pros and cons.
Registration with the state is not necessary in most cases, and although it still puts the finances of the business owners at risk here, the partnership divides the liability, making it a slightly better option than sole proprietorship for small teams of skilled workers or even small restaurants and such.
Limited Partnership: Active and Investing Partners
A Limited Partnership (LP) has to be registered with a state and whether it has just two or more partners, there are two different types of partners in all LP establishments.
The active partner or the general partner is the one who is responsible and liable for operating the business in its entirety. The silent or investing partner, on the other hand, is the one who invests funds or other resources into the organization. The latter has very limited liability or control over the company's operations.
It's a perfect way for investors to put their money into a sector that they are personally not experienced with, but have access to people who do. From the perspective of the general partners, they have similar responsibilities and liabilities to those in a general partnership.
It's the default strategy for startups to find funding and as long as the idea is sound, it has made way for multiple successful entrepreneurial ventures in the recent past. However, personal liability still looms as a dangerous prospect for the active partners to consider.
Limited Liability Company and Professional LLC
Small businesses have no better entity structure to follow than the LLC, given that it takes multiple good ideas from various corporate structures, virtually eliminating most cons that are inherent to them. Any and all small businesses that are in a position to or are in requirement of signing up with their respective state, usually choose an LLC entity because of the following reasons:
- It removes the dangerous aspect of personal liability if the business falls in debt or is sued for reparations
- The state offers the choice of choosing between corporation and partnership tax slabs
- The limited legalities and paperwork make it suited for small businesses
While more expensive than a general partnership or a sole proprietorship, a professional LLC is going to be a much safer choice for freelancers and consultants, especially if it involves risk of any kind. This makes it ideal for even single man businesses such a physician's practice or the consultancy services of an accountant.
B, C and S-Corporation
By definition, all corporation entities share most of the same attributes and as the term suggests, they're more suited for larger or at least medium sized businesses in any sector. The differences between the three are vast once you delve into the tax structures which govern each entity.
However, the basic differences can be observed by simply taking a look at each of their definitive descriptions, as stated below.
C-Corporation – This is the default corporate entity for large or medium-large businesses, complete with a board of directors, a CEO/CEOs, other executive officers and shareholders.
The shareholders or owners are not liable for debts or legal dispute settlements in a C-Corporation, and they may qualify for lower tax slabs than is possible in any other corporate structure. On becoming big enough, they also have the option to become a publicly traded company, which is ideal for generating growth investments.
B- Corporation – the same rules apply as a C-Corporation, but due to their registered and certified commitment to social and environmental standards maintenance, B-Corporations will have a more lenient tax structure to deal with.
S-Corporation – Almost identical to a C-Corporation, the difference is in scale, as S-Corporations are only meant for small businesses, general partnerships and even sole proprietors. The main difference here is that due to the creation of a pass-through entity, aka a S-Corporation, the owner/owners do not have liability for business debt and legal disputes. They also are not taxed on the corporate slab.
Cooperative: Limited Application
A cooperation structure in most cases is a voluntary partnership of limited responsibilities that binds people in mutual interest - it is an inefficient structure due to the voluntary nature of its legal bindings, which often makes it unsuitable for traditional business operations. Nevertheless, the limited liability clause exempts all members of a cooperative from having personal liability for paying debts and settling claims.
This should clear up most of the confusion surrounding the core concepts and their suitability. In case you are wondering why the Professional Corporation structure wasn't mentioned, then that's because it has very limited applications. Meant for self-employed, skilled professionals or small organizations founded by them, they have less appeal now in comparison to an LLC or an S-Corporation.