Type of business to start

M

Michaeljc

New Member
Jurisdiction
Texas
What type of business would be ideal for me to start? I intend to manufacturer cosmetics and 3D printed mechanical products from my home. I also would like it separate from my personal just in case if something goes wrong they don't go after my personal stuff.
 
Yours is, in no way, a legal question. There is no way that a bunch of random strangers on the internet can tell you what type of business to start. I've reported this thread for moderator review.
 
Michaeljc said:
What type of business would be ideal for me to start? I intend to manufacturer cosmetics and 3D printed mechanical products from my home. I also would like it separate from my personal just in case if something goes wrong they don't go after my personal stuff.
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Only the second part of your question is at all a legal issue. And an LLC would probably fit your needs if set up correctly.
 
Michaeljc said:
I also would like it separate from my personal just in case if something goes wrong they don't go after my personal stuff.
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The way you accomplish that is to buy Products Liability Insurance.

You can be held personally liable for your own negligence regardless of the type of business entity you use.

Before you start any business, you consult a business attorney, a CPA and a commercial insurance agent.
 
Michaeljc said:
What type of business would be ideal for me to start?
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Adult novelties.

Seriously...how should we know? We know nothing about you or your skills or interests.

Michaeljc said:
I intend to manufacturer cosmetics and 3D printed mechanical products from my home.
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Those are two incredibly different things, and, while I could be wrong about this, I believe there are some pretty significant regulatory issues relating to cosmetics. Also, if your business becomes at all successful, you'll have to move the manufacturing out of your home.

Michaeljc said:
I also would like it separate from my personal just in case if something goes wrong they don't go after my personal stuff.
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Good idea.

An even better idea would be to consult with and retain the services of a local business attorney. Also spend some quality time with an insurance agent.
 
PayrollHRGuy said:
Only the second part of your question is at all a legal issue. And an LLC would probably fit your needs if set up correctly.
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Whether or not I setup an LLC or sole proprietorship etc would have bearing on how I can protect assets in case if something goes wrong. Hence why I was asking what would be best. So an LLC would be best for the type of business. It seems like that first part was misread....

But I think adjusterjack understood what I meant. From what I am reading it doesn't really matter what type I will still need insurance. Although an LLC would probably still be best. And I should be consulting a local business attorney.

Thanks for the help! Any good ways to find good local business attorneys? Anything else I am missing?
 
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Michaeljc said:
Whether or not I setup an LLC or sole proprietorship etc would have bearing on how I can protect assets in case if something goes wrong. Hence why I was asking what would be best. So an LLC would be best for the type of business. It seems like that first part was misread....

But I think adjusterjack understood what I meant. From what I am reading it doesn't really matter what type I will still need insurance. Although an LLC would probably still be best. And I should be consulting a local business attorney.

Thanks for the help! Any good ways to find good local business attorneys? Anything else I am missing?
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Call your local State Bar Association for a referral (or five) of attorneys that practice Business Law. Have a consult with all and chose the one that suits you.
 
Michaeljc said:
Any good ways to find good local business attorneys?
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Whatever it is that you are manufacturing and selling, there is likely a trade association devoted to it. Trade associations often have resources available to members where you can get referrals to attorneys, insurance agents, etc.

Michaeljc said:
Anything else I am missing?
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Licensing and registration hasn't been mentioned yet. Your Secretary of State or Corporation Commission web sites may have that information. You will also have to collect and remit sales taxes.
 
Just to clarify more, where I work I do a lot of engineering and chemistry work. There are items I have made for the company that people have said I should patent. I didn't sign anything with the company either so I should be good to go. I was looking at patenting but I am very skeptical how patentable the items even are. There is a line as to if something is or isn't patentable because of other similar items. Plus I have watching many videos online about patents and for the little guy like myself it is hard to make patents work. And only 3 percent of patents make any profit. Soooo… I was going to start manufacturing the items myself and go from there. Maybe it will work, maybe not.


Does it make it easier what state the business is registered in? At this point in my life I can move around. From what I have heard there are states that have many regulations that make it difficult to do anything… especially if you are just starting out. But my guess is is that it is generally true that the less population the state has the less regulations as well.
 
Michaeljc said:
Just to clarify more, where I work I do a lot of engineering and chemistry work. There are items I have made for the company that people have said I should patent. I didn't sign anything with the company either so I should be good to go.
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No, you wouldn't be good to go. The design of the items you made during employment are owned by your employer. If you don't believe me, just ask them. You will need a written waiver from them in order to produce the items independently.

Michaeljc said:
I was looking at patenting but I am very skeptical how patentable the items even are. There is a line as to if something is or isn't patentable because of other similar items. Plus I have watching many videos online about patents and for the little guy like myself it is hard to make patents work. And only 3 percent of patents make any profit. Soooo… I was going to start manufacturing the items myself and go from there. Maybe it will work, maybe not.
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Assuming you get past the employer issue, without a patent somebody can come along and manufacture your item by the hundreds of thousands at a lower cost and price while you're making a few hundred in your home, and you're out of business.

With a patent you can sell or license the product and get paid for it.

Michaeljc said:
Does it make it easier what state the business is registered in? At this point in my life I can move around. From what I have heard there are states that have many regulations that make it difficult to do anything… especially if you are just starting out. But my guess is is that it is generally true that the less population the state has the less regulations as well.
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A myth. I'm sure that there are thousands of businesses doing quite well in Texas. Keep in mind that you'll have a certain amount of registration costs where your business is located and additional costs in whatever state you register.
 
Michaeljc said:
Whether or not I setup an LLC or sole proprietorship etc would have bearing on how I can protect assets in case if something goes wrong. Hence why I was asking what would be best. So an LLC would be best for the type of business. It seems like that first part was misread....
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A LLC is often a good choice for a single owner business. A corporation would also protect your assets and liabilities, and if you make an election with the IRS for it to be treated as a S-corporation. As an S corporation the income/loss of the business ends up on your personal return much like a LLC. No one here, on the facts presented, can tell you which would work better for what you wish to go.


Michaeljc said:
Anything else I am missing?
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Have you ensured your zoning would allow the activities you have in mind?
Do you plan to hire any other people to work for you? If you do, that opens up a whole lot of additional things you need to work out.
 
adjusterjack said:
That was Sept 2019, more than 3 years ago. OP could have relocated since then.
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That is correct.


Tax Counsel said:
A LLC is often a good choice for a single owner business. A corporation would also protect your assets and liabilities, and if you make an election with the IRS for it to be treated as a S-corporation. As an S corporation the income/loss of the business ends up on your personal return much like a LLC. No one here, on the facts presented, can tell you which would work better for what you wish to go.




Have you ensured your zoning would allow the activities you have in mind?
Do you plan to hire any other people to work for you? If you do, that opens up a whole lot of additional things you need to work out.
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I don't plan on hiring anybody at the house location at its inception but would like to see what the market is for these items and then go from there. I don't think it is much of a risk or even waste of time spending my time and cash on forming the LLC as from what I can tell I can use the LLC to do pretty much anything in the future because if selling these items fails, probably will, I would still like to own my own business. One of my favorite mottos:

Winston-Churchill-Quotes-on-Success.jpg
 

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