Legal Question in Business Law in California

I am currently trying to start a mail order beef jerky company and not sure of any of the legal aspects of what I need to do. I was wondering who im supposed to register with. Do I need to register with the usfda? Do i need insurance... Basicaly what legal things do i need to know or could you toss me a link to the information.


Asked on 6/02/11, 12:43 pm

3 Answers from Attorneys

Aaron Feldman Feldman Law Group

First, you should set up an entity for your business, such as a corporation or limited liability company. County (or City) food inspectors may need to inspect the area where you prepare the food and how you store and package your food to make sure it meets sanitary requirements. You will also need a business license and you will need insurance. If you have employees, you must have worker's compensation insurance. Since your product will reach the public, you will also want liability insurance should anyone try to sue you. This is not a complete list and actual requirements may vary depending on what City you live in.

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Answered on 6/02/11, 1:01 pm
Daniel Bakondi The Law Office of Daniel Bakondi

If it is just you, an LLC may be better. Less formalities than a corp., and possible tax benefits - speak with your accountant. You need an LLC agreement, and then to obtain an EIN number and file the required forms with the secretary of state. You will need a food permit, probably from the state dept of health, but this is not my area. You can find sources online. You may need a business license depending on your locality. You may also want business insurance. This is just generally speaking. Let me know if you have any specific questions.

Why dont you send some beef jerky to my office - I love the stuff.

Best,

Daniel Bakondi, Esq.

[email protected]

415-450-0424

The Law Office of Daniel Bakondi, APLC

870 Market Street, Suite 1161

San Francisco CA 94102

http://www.danielbakondi.com

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Answered on 6/02/11, 1:51 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

To supplement (and not to correct) the previous answers, all of which contain parts of the requirements, anyone preparing food for commercial sale must have and use a certified commercial kitchen, as described in the California Health and Safety Code. You should obtain and read at least two of the popular press soft-cover books on starting and running your own small business. Liability insurance will be very important, and your business-insurance agent can probably advise you on loss-prevention techniques. Obtain and use good accounting software, with professional advice on payroll and income tax matters in particular. I do not necessarily agree that an LLC is better than an S-corp. for this business, as LLCs' franchise taxes include an amount that is calculated as a percentage of gross sales, like a sales tax, and there is nothing particularly complex about starting and running a one-owner S corporation.

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Answered on 6/03/11, 9:39 pm


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