Looking for recommendations for starting a business

SeniorBen

SeniorBen

Senior Member
I'm going to manufacture some products at home to sell on Amazon... maybe ebay. I don't have any experience running a business, so any recommendations? Should it be a sole proprietorship or LLC? I'm not going to borrow any money to start the business since I have most of what I need to get started, minus materials. I don't expect revenues to exceed $50k a year, but you never know.

Any tips and tricks from those in the know?

One thing I was wondering is if I can buy raw materials and equipment wholesale that will be used in the company, or can you only buy wholesale things that you're going to resell?
 

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Pepper said:
Need to know what you are trying to sell.
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It would be the same business model as someone building birdhouses out of their garage workshop and then selling them on Amazon. They'd need to purchase wood, screws, a table saw, a drill press, sandpaper, etc... but not in huge quantities since it's just a home business.

How much of that, if any, could be purchased wholesale?

From what I've read, it seems like only retailers can purchase at wholesale prices from manufacturers for the purpose of reselling at a higher price. That may or may not be true, but that's what it seems like. If that's the case, raw materials and machinery would not qualify.
 
SeniorBen said:
How much of that, if any, could be purchased wholesale?
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I think you can buy anything wholesale so long as the seller agrees. However many wholesalers do not want to deal with small volume buyers.

Some wholesalers may expect to see a sales tax exemption. The rules for those vary from state to state but the idea is that the wholesaler does not have to collect sales tax from you because you will be selling the items retail and collecting sales tax at that point. Here is a link to a Utah sales tax exemption form https://tax.utah.gov/forms/current/tc-721.pdf

I suggest you talk with wholesalers you are interested in buying from and ask them. Wish I could be of more help.
SeniorBen said:
Should it be a sole proprietorship or LLC?
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Again this varies depending on the state you are in and the kind of business you are talking about. Some kind of corporation that can protect your personal assets is usually a good idea, an LLC is usually the simplest. You should be able to do that yourself online. I have done it in Florida, Georgia, and Utah myself no lawyer.. I am a sole proprietor and an LLC. So is my wife for her business.

Best of luck with it.
 
The SBA (Small Business Administration) offers "help"
A mentor, set up a business 'plan'..etc.
Good Luck!😉
 
stevemarkovick said:
This sounds like a great low-risk way to start—using what you already have and selling through platforms like Amazon or eBay is smart. I’d lean toward an LLC for the liability protection, even if your revenue stays modest. Tracking expenses, materials, and leads through something like Phonexa really helped me stay organized from day one. Good luck!
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Senior Ben hasn't been here in almost a year.
@Jace
 

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