Welcome to YT as far as the harness vs collar...I use collars for identification and I have one(cat break away) with a little bell so I hear her coming. As far as harnesses that's the only thing I would use for walking...I wouldn't want any stress to her trachea. Depending on how old Lily is and if she's gone growing I would invest in a quality harness. I have a buddy belt, there's a member here that sells them and they also have them on amazon most people with yorkies get a size 1 or 2. I'm not sure about the grooming part. I plan on keeping my baby in a show coat, but I'm sure others will have more knowledge on this than I do.