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Re:Ask HN: Side projects that are making money, but you'd no... by hbarka on Saturday June 06, 2020 @11:39AM (#23439898)
Sincere question—how do you handle legal, especially with consumables?
Re:Ask HN: Side projects that are making money, but you'd no... by awillen on Saturday June 06, 2020 @12:03PM (#23440097)
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_labei...

Re:Ask HN: Side projects that are making money, but you'd no... by ta17711771 on Saturday June 06, 2020 @03:19PM (#23441583)
Why not incorporate somewhere that's not CA?
Re:Ask HN: Side projects that are making money, but you'd no... by bradgessler on Saturday June 06, 2020 @05:54PM (#23442561)
If 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.
Re:Ask HN: Side projects that are making money, but you'd no... by awillen on Saturday June 06, 2020 @03:55PM (#23441807)
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.
Re:Ask HN: Side projects that are making money, but you'd no... by unstatusthequo on Saturday June 06, 2020 @04:42PM (#23442070)
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...
Re:Ask HN: Side projects that are making money, but you'd no... by moeamaya on Saturday June 06, 2020 @05:30PM (#23442389)
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-stat...

Re:Ask HN: Side projects that are making money, but you'd no... by philsnow on Saturday June 06, 2020 @05:34PM (#23442420)
CA levies a (not insignificant) fee even for Delaware LLCs that operate in California.
Re:Ask HN: Side projects that are making money, but you'd no... by bradgessler on Saturday June 06, 2020 @05:54PM (#23442567)
Yes, $800. Same cost as forming the LLC.
Re:Ask HN: Side projects that are making money, but you'd no... by awillen on Saturday June 06, 2020 @08:29PM (#23443610)
Damn, that's what I was hoping to avoid :/
Re:Ask HN: Side projects that are making money, but you'd no... by irlib on Saturday June 06, 2020 @10:30PM (#23444300)
Weather tax.
Re:Ask HN: Side projects that are making money, but you'd no... by M5x7wI3CmbEem10 on Saturday June 06, 2020 @08:28PM (#23443604)
What 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?

Re:Ask HN: Side projects that are making money, but you'd no... by m0zg on Saturday June 06, 2020 @11:33PM (#23444559)
Because 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.
Re:Ask HN: Side projects that are making money, but you'd no... by M5x7wI3CmbEem10 on Saturday June 06, 2020 @08:24PM (#23443576)
why not an S-corp over an LLC?
Re:Ask HN: Side projects that are making money, but you'd no... by awillen on Saturday June 06, 2020 @11:26PM (#23444530)
I'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.
Re:Ask HN: Side projects that are making money, but you'd no... by thrownblown on Saturday June 06, 2020 @11:41PM (#23444583)
Phantom 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.
Re:Ask HN: Side projects that are making money, but you'd no... by jolmg on Saturday June 06, 2020 @11:50AM (#23439977)
I wonder if the FDA (or equivalent in awillen's jurisdiction) would care about non-human consumables.
Re:Ask HN: Side projects that are making money, but you'd no... by awillen on Saturday June 06, 2020 @12:05PM (#23440109)
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."

Re:Ask HN: Side projects that are making money, but you'd no... by karatestomp on Saturday June 06, 2020 @02:13PM (#23441151)
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.
Re:Ask HN: Side projects that are making money, but you'd no... by ta17711771 on Saturday June 06, 2020 @09:13PM (#23443840)
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.