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50 replies to this topic
Posted 31 December 2004 - 11:52 AM
Riverman, I think you got some bad advice unless your company is incorporated. The name you sell under has nothing to do with your liability. I carry a seperate liability insurance rider, and its pretty cheap. You should double check.
Posted 31 December 2004 - 12:52 PM
ok someone enlighten me here, The manufacturer pays an excise tax on the product (lure) minus the components that were secured from sources that had already paid the excise tax (ie ordered from Janns, or Stamina, etc) those secondary and third party marketed items like hooks have had tax paid already thats why they are expensive, unless you find a source that requires you to file your FET number, and then you assume the resopnsibility for the tax on that said component. Components that come from outside tackle industry(ie wood, wire) are not deductable off the marketed value, and you absorb the costs.
Ok here is where I really need to understand... PACKAGING !
NO way that packaging is taxed under FET is it? its not a part of the intent of taxing the lure manufactured, and a lot of packaging is even done by outside sources making that not even truly a part of the tackle munufacturers business. SO is the packaging aspect of the costs to the business also able to be deducted off the top of the actual value of product? and if this is so, heres my thought, I make a lure and have records showing costs to manufacture. I claim a market value of "X" per unit for the lure I have manufactured. I then package and sell the lure with a Tips and Techniques sheet included in the package, clearly marked 10.00 on the document. Is there any FET tax on providing such information to the consumer? If there was I would figure every form of media viewed by fishermen where the seller is profiting my be taxed by FET?
Posted 31 December 2004 - 12:58 PM
This should set a record for the most intresting and longest post on the B.B. I'm learning something new every hour! The info may or may not be correct but has a point! Anyone taking notes for when this becomes final? .
Posted 31 December 2004 - 02:15 PM
You may be right Boatnik, the guy that advised me has no legal training himself but has sold fishing and hunting related items for a long time....I will have to quiz him further.
If what you are saying is true tho, that we lure builders could be held "personally liable", then it seems any of us could be held liable in the event a lure we build leads to an injury, whether we sell it or not. What about a guy that builds a few baits and decides to sell them or give them to an acquaintance? On another forum of this site we have been discussing "donating" items to charity. What if one of those items leads to the injury of a child? For that matter, what about a guy that builds a chair and sells it to someone? The possibility for liability would go on forever wouldn't it? I don't know, it's a stretch but I'm sure you are correct in assuming there is the possibility for some "sue happy" person to pursue legal action.
When I was a kid, I used to watch my dad sit at a desk working on his business records. I can vividly remember him saying "the government makes liars of everyone".
Posted 31 December 2004 - 02:59 PM
I still think this is the most intresting subject yet! I bet many of us are or were thinking of starting a business selling quality lures VS the plastic junk of discount stores. Looking into my small city phone book> we got a dozen pages of free lawyers! Just waiting for a freeloader case. This is why people become Inc. in business so you can't have the pants sued off you. This is why the custom lure that took $3 to build cost $19.99 on retail side. This takes me back to my other coments! You make a thousand wood lures and made sure they don't steal a trademark name and you sell them to pro's and on line to clubs ect.ect. I (I can copy any lure made today in a matter of hours) copy your lure > add my trade mark and use your lure name and sell the lures as if they were my Idea and at the same time sue you for making your lures that use your name because they invade my space and I'm registerd to sell them and sue for your sharp hooks that puntured someones inflatable raft and cuaed them to loose all the fishing equipment and almost died all Ifbecause of over sharp hooks and a heavy lure that sails way out in the lake. and now I feel I can no longer handle fishing lures the rest of my life so I got to take you out of business and then they find out you haven't paid a mfc.tax in your state for producing lures and my company goes on selling your lure reproduced by me. Hey! its just a thought ! I would never consider! Hey! if you have your own design and a hobby person> take time to send it to yourself so it gets post marked and never open it till someday someone would try this copy cat Idea and then you can prove you had the Idea and design since that date F I R S T! Take that!
Posted 31 December 2004 - 03:21 PM
Man's ability to complicate the uncomplicated.
You poor guys and your taxes. Up here if you buy retail you pay 15%(some Provinces are a little less); if you have a GST number and you buy wholesale you pay 7%.
With a business you keep track of the taxes you collect and the taxes you pay. You then subtract one from the other and if you owe you pay if they owe you they pay.(every 3 months)
We don't pay your 10% tax or duty. I do pay 7% when it comes across the border.
Posted 31 December 2004 - 06:05 PM
Hey now Nova our taxes make perfect sense if you happen to make more than a million dollars a year and/or own a huge corporation! lol. For the all the rest of us snails in the sand...........too bad!!
Posted 31 December 2004 - 07:37 PM
Hey Guy's, This does seem to be one of the most drawn out post, but everything said here is very important. The only way to protecy your personal holdings is to have your lure business incorporated. This is also the most complicated way to go for the small businesses we have. The attorny I spoke to had me register my company as an LLC. This gives much the same protection as the incorporated business with out a lot of the extra paper work and hastle big companies must deal with. The cost was around$75.00 which is not much concidering the protection it provides. I am still looking for a good deal on finished product liability insurance and have not found a good co. I have a rider tacked onto my personal insurance and it's higher than I would like to pay. Joe
Posted 14 January 2005 - 04:58 PM
Holy #$%! That's outrageous!!!
Maybe if the IRS was repping my products but... Wow.
Posted 14 January 2005 - 05:15 PM
Dang, I've got a lot of learning to do.
And all I wanted to do was make money with my airbrush painting custom fishing products instead of working in corporate indentured servitude.
Time to go fishin'.
Posted 14 January 2005 - 06:03 PM
Just was at the library looking at small business adventures. Suggest others to look at these types of books befor entering the money making world. Looked at a easy book like "The small business start-up kit". It covers all from start to finish. Basicly your looking at a hobby then to switch up and get bigger. Intresting but its all there. Things you need to Know!