5 ms·

Sincere question—how do you handle legal, especially with consumables?

by hbarka 6y ago

jolmg 6y ago
I wonder if the FDA (or equivalent in awillen's jurisdiction) would care about non-human consumables.
- awillen 6y ago
  The FDA does regulate, but much more lightly - from their site: "The FDA’s regulation of pet food is similar to that for other animal food. There is no requirement that pet food products have premarket approval by the FDA. However, the Federal Food, Drug, and Cosmetic Act (FFDCA) requires that pet foods, like human foods, be safe to eat, produced under sanitary conditions, contain no harmful substances, and be truthfully labeled."
- karatestomp 6y ago
  I'd hope they care at least some. Little kids love to eat dog/cat food and treats, and it's hard to keep them out of it. At least enough to make sure it's not, like, full of lead or something.
  - ta17711771 6y ago
    They can't even keep baby powder from being cancer causing - you're fooling yourself if you're solely relying on them for your safety.
deleted 6y ago
[deleted]
awillen 6y ago
On the safety side, I've had crude analysis done (which is the standard nutritional testing for pet food in the US and was $250 per flavor), and I've consulted with a couple of vets to make sure the product is safe. On the legal side, I've got business insurance, which thankfully isn't that expensive. I've been holding off on forming an LLC since that's gonna run me about a grand here in CA including the cost of setting it up and LLC tax, but if there's continued interest in the product, I'll do that soon. Edit: Also AAFCO is a group that has standards for this sort of thing that are pretty straightforward: https://petfood.aafco.org/Portals/1/pdf/eight_required_labeilng_items.pdf https://petfood.aafco.org/Portals/1/pdf/eight_required_labei...
- ta17711771 6y ago
  Why not incorporate somewhere that's not CA?
  - awillen 6y ago
    That's a good question... the last couple of LLCs that I've formed have been for businesses that are clearly operating in CA (one was for real estate here and the other for a local service company) and thus require the LLC there. Since I'm selling to the whole US here, maybe it is a better option... I will look into it.
    - unstatusthequo 6y ago
      Lawyer here. Not yours. But consider Delaware or really any state. You do not need to form it in CA just because that’s where you are. Just get a registered agent and pick a state that doesn’t have oppressive LLC fees...
      - moeamaya 6y ago
        We've gone over this with our lawyers many times, but if you do the majority of your business operations in CA and have an LLC in any state you'll be subject to $800/year minimum franchise tax in CA still. https://www.lobbplewe.com/blog/2019/09/rules-for-out-of-state-llcs-doing-business-in-california.shtml https://www.lobbplewe.com/blog/2019/09/rules-for-out-of-stat...
      - philsnow 6y ago
        CA levies a (not insignificant) fee even for Delaware LLCs that operate in California.
        bradgessler 6y ago
        Yes, $800. Same cost as forming the LLC.

Sincere question—how do you handle legal, especially with consumables?

by hbarka 6y ago

Sincere question—how do you handle legal, especially with consumables?

jolmg 6y ago

I wonder if the FDA (or equivalent in awillen's jurisdiction) would care about non-human consumables.

awillen 6y ago
The FDA does regulate, but much more lightly - from their site: "The FDA’s regulation of pet food is similar to that for other animal food. There is no requirement that pet food products have premarket approval by the FDA. However, the Federal Food, Drug, and Cosmetic Act (FFDCA) requires that pet foods, like human foods, be safe to eat, produced under sanitary conditions, contain no harmful substances, and be truthfully labeled."
karatestomp 6y ago
I'd hope they care at least some. Little kids love to eat dog/cat food and treats, and it's hard to keep them out of it. At least enough to make sure it's not, like, full of lead or something.
- ta17711771 6y ago
  They can't even keep baby powder from being cancer causing - you're fooling yourself if you're solely relying on them for your safety.

deleted 6y ago

[deleted]

awillen 6y ago

On the safety side, I've had crude analysis done (which is the standard nutritional testing for pet food in the US and was $250 per flavor), and I've consulted with a couple of vets to make sure the product is safe. On the legal side, I've got business insurance, which thankfully isn't that expensive. I've been holding off on forming an LLC since that's gonna run me about a grand here in CA including the cost of setting it up and LLC tax, but if there's continued interest in the product, I'll do that soon. Edit: Also AAFCO is a group that has standards for this sort of thing that are pretty straightforward: https://petfood.aafco.org/Portals/1/pdf/eight_required_labeilng_items.pdf https://petfood.aafco.org/Portals/1/pdf/eight_required_labei...

ta17711771 6y ago
Why not incorporate somewhere that's not CA?
- awillen 6y ago
  That's a good question... the last couple of LLCs that I've formed have been for businesses that are clearly operating in CA (one was for real estate here and the other for a local service company) and thus require the LLC there. Since I'm selling to the whole US here, maybe it is a better option... I will look into it.
  - unstatusthequo 6y ago
    Lawyer here. Not yours. But consider Delaware or really any state. You do not need to form it in CA just because that’s where you are. Just get a registered agent and pick a state that doesn’t have oppressive LLC fees...
    - moeamaya 6y ago
      We've gone over this with our lawyers many times, but if you do the majority of your business operations in CA and have an LLC in any state you'll be subject to $800/year minimum franchise tax in CA still. https://www.lobbplewe.com/blog/2019/09/rules-for-out-of-state-llcs-doing-business-in-california.shtml https://www.lobbplewe.com/blog/2019/09/rules-for-out-of-stat...
    - philsnow 6y ago
      CA levies a (not insignificant) fee even for Delaware LLCs that operate in California.
      - bradgessler 6y ago
        Yes, $800. Same cost as forming the LLC.