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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
by 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 agoWhy not incorporate somewhere that's not CA?
- awillen 6y agoThat'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 agoLawyer 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 agoWe'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 agoCA levies a (not insignificant) fee even for Delaware LLCs that operate in California.
- bradgessler 6y agoYes, $800. Same cost as forming the LLC.
- M5x7wI3CmbEem10 6y agoWhat should we check to see which state is the best to form an LLC in? I want to double-check whether it’s viable to form one in my state before considering Delaware. Why an LLC instead of an S-corp?
- bradgessler 6y agoIf you do that then you have two problems: the same amount in fees from CA for being a foreign entity operating in that state + the fees of whatever state you formed your LLC/C-Corp/S-Corp/whatever.
- m0zg 6y agoBecause then you end up paying there _and_ in CA. Any state you do business in demands a cut. Even so, if you ever intend to sell your company or do business outside your state, it makes sense to be a Delaware company - lots of lawyers know Delaware business law.
- M5x7wI3CmbEem10 6y agowhy not an S-corp over an LLC?
- awillen 6y agoI'm not an expert and will need to double check, but I believe an S-corp is more complex, and since it's just me it's not really any better. And from the tax side as an LLC you can elect to be taxed as an S-corp so no benefit there.
- thrownblown 6y agoPhantom income from my s-corp excluded my family and I from healthcare subsidies when I really couldn't afford to pay full price for healthcare.