cvndlechix Posted May 16, 2016 Share Posted May 16, 2016 I am in the process of starting a small candle business and I am STUMPED on getting insurance or starting an LLC. I have been getting some advice from others, some say LLC to protect your personal assets which I understood but until profits come in is it necessary to register as an LLC so early? As far as insurance, is general liability insurance the perfect option and what insurance companies offer it? Overall, I feel like I will get the best input from other candle makers who started a business of there own any input is appreciated! Quote Link to comment Share on other sites More sharing options...
Candybee Posted May 16, 2016 Share Posted May 16, 2016 Personally I would wait until I am ready to start selling. If you are in the process of learning how to make candles it could be a while before you are ready to start selling. An LLC may offer some protection but its no guarantee. its best to have insurance in place when you start selling regardless of the business entity you form for your company. Especially anyone selling candles and/or body products. Whomever told you you don't need insurance if you form an LLC gave you some bad advice. I have my insurance through the soap guild that covers my soap, B&B, and candles. 2 Quote Link to comment Share on other sites More sharing options...
Jcandleattic Posted May 17, 2016 Share Posted May 17, 2016 You really do need both - a form of company, LLC will protect your personal assets, but only if you run ALL business expenses through business accounts associated with the LLC, etc., or there is no protection for an LLC. With that being said, you really should have a business entity in place when you start selling whether you turn a profit or not. People have differing opinions about this, but this is my opinion. Also, you need to have insurance in place before your first sale. No matter how long or well you test and plan, accidents DO happen, and we live in a "sue-happy" society. and just because you have an LLC that won't protect you from a lawsuit, but insurance can. I agree with Candy though, if you just started learning to make candles, it may be a while before you have a candle that is safe enough to sell and be ready to form a company. I also have my insurance through the Guild- but one of the requirements for that soap, is to already have an established business, and have soap as one of the products you sell. 1 Quote Link to comment Share on other sites More sharing options...
TallTayl Posted May 17, 2016 Share Posted May 17, 2016 Make sure when Insurance shopping you get a policy that covers both product and general liability. If you want to sell at shows you will usually be required to provide proof of insurance to sign up. 1 Quote Link to comment Share on other sites More sharing options...
cvndlechix Posted May 17, 2016 Author Share Posted May 17, 2016 Thanks for all the advice, I started making candles in 2014 been testing ever since then ( is that to long? LOL) but I finally got into the swing of creating a solid candle and have been giving them to family and friends they love them ! But i will definitely take this advice and put it into play when its go time. And ah man I was going to look into guild but I dont make soaps Are there any another insurance providers you may know of? Quote Link to comment Share on other sites More sharing options...
Candybee Posted May 18, 2016 Share Posted May 18, 2016 Check out the sticky at the top of this forum about insurance. It will give you more info on insurance and where to get it. 1 Quote Link to comment Share on other sites More sharing options...
dandytea88 Posted May 18, 2016 Share Posted May 18, 2016 I agree with Candybee's post From what I've researched, when you're ready to sell, it's good to decide if you want to go the LLC route or the Sole Proprietor route so you know exactly what you'll need to take care of depending on what business model works best for you. You will need insurance though regardless of which you choose! Too, you can see if your state has any tax rules on SP or LLC companies? In California (where I live) from what I've seen, though LLC provides more protection if you get into legal trouble, it's possible you could have to pay an annual tax of around $800. But the legal stuff can be scary! Rules can vary too if you are in the city or county only in some places (such as Sacramento, where I am) so it's good to double check and take your time For example, I almost would have had to pay for a Home Occupation Permit (which is a little less than $200) if I hadn't researched this stuff carefully. Turns out, since I'm not in the "city" of Sacramento, I didn't need one! 1 Quote Link to comment Share on other sites More sharing options...
cvndlechix Posted May 23, 2016 Author Share Posted May 23, 2016 Oh wow ok! I'm in Virginia so I will make sure to look into it and YES, all of this legal stuff is scary and I want to make sure I do it right Quote Link to comment Share on other sites More sharing options...
Siren12 Posted May 24, 2016 Share Posted May 24, 2016 i bought the insurance through the indie business network, it was super easy to sign up for and since you join the network to get it theres lots of added benefits. From what i was finding from researching on here and the internet it was cheaper to join their network than to try to get it from an insurance broker on your own. i feel way better at least have something 1 Quote Link to comment Share on other sites More sharing options...
TallTayl Posted May 24, 2016 Share Posted May 24, 2016 2 hours ago, Siren12 said: i bought the insurance through the indie business network, it was super easy to sign up for and since you join the network to get it theres lots of added benefits. From what i was finding from researching on here and the internet it was cheaper to join their network than to try to get it from an insurance broker on your own. i feel way better at least have something Joining the organizations is well worth it, especially if you take advantage of their other programs, forums and buying discounts. Quote Link to comment Share on other sites More sharing options...
wthomas57 Posted September 3, 2016 Share Posted September 3, 2016 On 5/16/2016 at 6:29 PM, Candybee said: Personally I would wait until I am ready to start selling. If you are in the process of learning how to make candles it could be a while before you are ready to start selling. An LLC may offer some protection but its no guarantee. its best to have insurance in place when you start selling regardless of the business entity you form for your company. Especially anyone selling candles and/or body products. Whomever told you you don't need insurance if you form an LLC gave you some bad advice. I have my insurance through the soap guild that covers my soap, B&B, and candles. I was looking to switch to them, but after reading their fine print and their FAQs, you do not qualify if you only sell candles and melts. I know this doesn't apply to you,but currently I do not have any soaps or cosmetics in my line of products. According to them, this doesn't qualify as you at least need some soap or cosmetic product. Any other suggestions? Thanks Quote Link to comment Share on other sites More sharing options...
wthomas57 Posted September 3, 2016 Share Posted September 3, 2016 Actually after reading a bit more, I checked out Indie Business Network and they use the EXACT same insurance group and policies as Soapguild does.... BUT with the added benefit of being more focused on candle makers as well. In addition, no requirement to also carry soap or cosmetic items. May have found a winner! 2 Quote Link to comment Share on other sites More sharing options...
Candybee Posted September 3, 2016 Share Posted September 3, 2016 Yes. I think Indie is the best way for you to go. I do seem to recall TT posted a new crafter's insurance group somewhere on this forum. Maybe its in the sticky thread. Will check it out. Anyway from what I remember its the cheapest so far. 1 Quote Link to comment Share on other sites More sharing options...
Candybee Posted September 3, 2016 Share Posted September 3, 2016 Found it. Only it was an email from WSP to me. I posted it in the biz insurance sticky thread at the top in this forum. Check it out. Could be good news for you! 1 Quote Link to comment Share on other sites More sharing options...
wthomas57 Posted September 3, 2016 Share Posted September 3, 2016 ok, cool. thank you! 1 Quote Link to comment Share on other sites More sharing options...
wthomas57 Posted September 3, 2016 Share Posted September 3, 2016 1 hour ago, Candybee said: Found it. Only it was an email from WSP to me. I posted it in the biz insurance sticky thread at the top in this forum. Check it out. Could be good news for you! Hey Candybee, I just read through their policy and FAQs and they specifically EXCLUDE candles. In fact, its one of the first few it mentions that they will not cover. So unfortunately, they will not work. Just wanted to share this as I just discovered it.Ill be going with Indie. Quote Link to comment Share on other sites More sharing options...
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