If you have the urge to start a supplement company in California you actually have a couple of business types to choose from. These include a sole-proprietorship, a corporation, a partnership, and a limited liability company (LLC).
You’ll certainly want to make an informed choice as to which one of these you’ll go for. The idea is to go for the business type that’ll best complement your situation and business ambitions.
In trying to keep things uncomplicated you may be tempted to go for a sole-proprietorship. The fact that this simplest of business structures doesn’t require you to make formal filings can certainly appeal to you.
Nevertheless, it presents a huge drawback you’ll want to be very wary of. In the event that your business will be unable to settle its debts and obligations, your personal assets could be used to do so.
I strongly recommend the LLC structure for your supplement company – for several good reasons.
Firstly, your personal assets will be protected from possible business debts and lawsuits. Secondly, taxation requirements are comparatively simpler and cheaper with this business type.
Last but not least, the uncomplicated nature of an LLC makes it a convenient way to launch and grow a startup like the one you have in mind.
If you are looking to start your dietary supplement LLC, then email me, Sam Mollaei Esq., business lawyer at firstname.lastname@example.org.
LLC for Dietary Supplement Company
If you are a dietary supplement entrepreneur in California you are well advised to adopt the LLC structure for your new startup.
Read more about the LLC here.
Business Lawyer for Dietary Supplement Entrepreneurs
Being a business lawyer who has worked with numerous entrepreneurs launching dietary supplement companies, I am suitably experienced in ensuring that forming your LLC will be an efficient and convenient undertaking. You can rest assured that we’ll get everything right the first time.
3 Steps to Take When You’re Starting a Supplement LLC in California
You’ll need to do the following as you start your supplement LLC:
- Register your dietary supplement company with the secretary of state’s office in order to form a limited liability company (LLC).
- Get in touch with your city, town or local county clerk’s office or SBA office to seek the information necessary for business licensing and registration; apply for licenses and registration. Apply for a Federal EIN and a State Employer EIN through the Internal Revenue Service (IRS). Apply for a sales tax number through the state’s department of revenue. File your Statement of Information, Form LLC-12.
- You can do all of the above yourself or hire a Business Lawyer to handle everything on your behalf.
If you are interested in forming your California supplement LLC get in touch with me, Sam Mollaei Esq., at email@example.com.
Requirements for producing, marketing, importing, distributing or selling a dietary supplement in the United States
All regulatory matters concerning dietary supplements are handled by the Center for Food Safety and Applied Nutrition of the U.S. FDA. You can get in touch with them via their website, CFSAN, or call 1-888-723-3366.
Nevertheless, as a manufacturer or distributor of dietary supplements, you aren’t obligated to secure FDA approval before you can start marketing supplements.
Benefits of Starting a Dietary Supplement Limited Liability Company
There are several important benefits that come with starting an LLC supplement company.
Adopting this type of business structure will protect you from personal liability for the LLC’s business actions or decisions, allow you to enjoy pass-through taxation, allow you to bring in as many members as you deem fit, allow you maximum flexibility in coming up with your management structure, ensure that you don’t have to deal with as many formalities or as much paperwork like in the case of corporations, and much more.
Name Requirements For a Supplement LLC
Before you choose a name for your LLC you should check to see that the business name you have in mind is not too similar to another name that’s already registered with your state’s Secretary of State.
How Do You Form a LLC Nutritional Supplement Company?
The following are the steps you must follow in order to form a nutritional supplement company in California:
- Conduct a search for your business name
- File the Articles of Organization with the Secretary of State and pay the filing fee. This filing fee is currently $70.
- Establish an Operating Agreement. This is an agreement between the LLC’s members that details the manner in which the company is governed and also describes members’ financial and managerial rights and duties.
- Apply for an Employer Identification Number (EIN) through the IRS.
- File a Statement of Information. This form contains your LLC’s basic information. You’ll need to submit it within 90 days of initial registration and then every two (2) years thereafter. The filing fee is currently $20.
- Make a search and apply for the requisite business licenses and permits.
- Apply for a sales tax number through the state’s department of revenue.
- Register with the EDD if you plan to hire employees.
- Be aware of the ongoing costs of running an LLC.
Are you planning to form your California supplement company LLC? Don’t hesitate to let me, Sam Mollaei Esq., know how I can help you. Email me at firstname.lastname@example.org.
What To Do Next
A quick look at the steps detailed above can give you the impression that forming your supplement company will be a quick and easy procedure. The reality, however, is that an error or two can greatly inconvenience you, more so on issues that concern the Secretary of State’s office.
As a Business Lawyer for Entrepreneurs, I have plenty of experience working with entrepreneurs like you to start their dietary supplement companies in California. I can certainly assist you to handle this crucial stage of your startup.
If you are an entrepreneur in the dietary supplement space and are looking to form your Limited Liability Company email me, Sam Mollaei Esq., at email@example.com.
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