Starting a product line

[DaveRiser]

I want to know what I should do legally to sell my products of bath and body? Its not a big business, I just want to be able to sell at farmers markets and places like that. Do I have to register my business name? Do I need to list the ingredients on the product it's self or can I attach a flier with that information? and am I held responsible if someone buys my lotion and has a allergic reaction due to skin sensitivity? What about taxes? I know that each state has different laws but I cant find mine for California. please help.

[fthom]

I'm not entirely sure how to make it legal but firstly register as self employed as a sole trader and set up a bank account for the business. You may not have to do all that if all your doing is selling at a farmers market (considering this is just like having a car boot sale whereby you don't have to pay tax!). You will need to say what the ingredients are and something like to do with any reactions that could occur, and you can either label the products with this or a flyer would probably do. I really depends were you plan on selling it whether or not you have to pay tax!

[CybFun.com]

Maybe you can start small at farmers market, flee market or someplace and think about those matters later.

[mthomas]

If you are concerned about lawsuits due to allergic reactions and such, then you should register to be an S-Corp or an LLC. This will protect you from any personal liability. Speak to a lawyer or an accountant on how to do this.

If you aren't that concerned with lawsuits, you really just need to register for a business license, and depending on the state, a license for sales tax purposes. Again, an accountant or lawyer would be great to consult with. You can also check out your state website for more information.

[TylerBakerllc]

If I was you I would take mthomas' advice and form an S corp or LLC... In your case, an LLC would probably be the easiest way to go (less paperwork, less work for your accountant, etc.). If you are trying to make a living with your product, you should file also file your business name with your local officials, get a tax id number, and be as legitimate as possible at this stage.... It will save you headaches on down the road. Also, be sure to hire an accountant to navigate the tax and $$ issues. It is well worth the cost to have a professional make sure that your $ affairs are in order.

Yes, I would list the ingredients in your product on the bottle itself. It will help protect you and also give any customers that have allergies an easy reference to look at.

If you want to find out Tax info for California, either look at IRS.gov or hire an accountant (I prefer the later)... You will be happy that you did come tax season.

If you need help with setting up a retail presence on the net, a brick and mortar storefront, or wholesale distribution channels, let me know. I own a brand management company based in Cincinnati, Oh. We are experts in everything from sales force management to supply chain development... So needless to say, we navigate these waters everyday.

PM me if you need any help. Take care.
-Tyler

[DaveRiser]

WOW thanks for all the advice, so then really I don't need to do anything if I'm just selling at like a farmers market, besides putting labels of ingredients on the bottles... right? I mean I don't have to register to pay taxes on the bath and body products that I sell there right?

[mthomas]

You should contact an accountant on that, as I'm not sure if you should be collecting sales tax or not. If you are, you will need to file for some sort of vendor licensing (it depends on the state).