Starting Small Manufacturing Business in California

[ddowns46]

Hi everyone,

I'm new to the forum but I had a couple of quick questions. My brother and I are starting a business, and we are manufacturing and selling precision racing clutches for the go kart industry. What is everything that we need legally before we can start selling items in California? Do we need a business license? A resale license? Forget about product liability insurance for now since we plan to form an LLC somewhere down the rode, what is everything that we need to get started at a minimum. I dont want to start selling our product online and not have it be legal. Again, I don't know much about this stuff, any input would be very helpful. Also, Any idea how much these licenses cost? I've alredy filed for a tax ID.

Thanks,
Danny

[henryz]

Hello Danny, I'm also in California. Are you going to be manufacturing or only reselling the clutches and other parts, if thats the case you are probably going to look into certifications for some of those items since safety is a concerned, for reselling I don't think you need all that stuff. You will need a sellers permit or resale license to by your supplies from wholesalers or suppliers.

Good Luck

[ddowns46]

Hi,

Thanks for the response. I am not doing any of the manufacturing, just some light assembly and packaging in my garage. Do I still need certifications, and if so what types? Also, How long does it take to get a business license and a resale license in CA?

[henryz]

You probably don't need all that stuff, the manufacturer should covers any of those liabilities, but make sure you look into it. Your resale license you can get the same day if I remember correctly, check with you county recorder's office to get all the break down. Check with your city on the requirements for business license, specially if your are starting considering starting from home, they might not allow you to do this. A lot of people who have home business don't have a business.

[phanio]

Talk to your state's secretary of states office and then your local city or clunty clerk's office - they can tell you what you need and what you are exempt from and what the costs are. You might also look for free help and advice in your area from your local SBDC or SCORE office.