Selling at the Farmers Market(s)

[vinkandy]

Fellow boilers, I'm new to the forum and have some questions regarding selling Maple Syrup. I have a small farm in Western Michigan and have about 40 Maples on the property. Last year I tested the trees and made a few gallons of syrup using stainless buffet pans over a campfire. This year I decided to ramp things up.

I have three daughters and thought it would be a good learning experience for them to get involved in processing, marketing and selling something (Maple Syrup). I'm not out to make a fortune, but thought whatever profits they accrued, it could all be put toward their college accounts. In the process they would learn valuable skills about product development, engineering, marketing, sales etc...

I've fabricated a continuous flow 316 Stainless Steel evaporator and fire-box, purchased a refurbished GE E2 Series Reverse Osmosis machine and stocked up on collection containers and taps.

I have some question regarding legalities in selling our product at an 'average' farmers market. I was thinking it may be best to sit down with a small business attorney to draw up all the paperwork to become an LLC. Even though it's going to be an operation for my daughters to have fun with a make a few dollars, I'm unsure about the legalities that could come to bite us.

Do you recommend becoming an LLC?
Do I need to apply with the FDA even if our gross sales are under $15,000.00?

Any other pointers that could help us get started would be appreciated. We're not planning on selling syrup this year, as this is going to be our year to develop our processes and make lots of product to give away.

Thanks in avance!

[Bucket Head]

Well, I'm not a small business expert and I am not an attorney. And I have no idea how the state of Michigan looks at syrup production and sales. What I can tell you is that product liability insurance is a good idea (if not a requirement) and as a food producer you will have to register with the FDA. Registering is something new to all syrup makers but its a must now.

Good luck with the "business" and have fun.

Steve

[spud]

Become a Corp instead of a LLC. If someone gets sick eating your syrup and sues you then you could loose everything you have as a LLC. A Corp protects you from that.

Spud

[ldick]

Become a Corp instead of a LLC. If someone gets sick eating your syrup and sues you then you could loose everything you have as a LLC. A Corp protects you from that.

Spud

I don't think this is correct. LLC stands for Limited Liability Corporation. Having an LLC make and sell your syrup means that should it be sued your personal items (home, car, savings etc. etc.) cannot be taken from you. Only thing at risk is equipment and/or property owned by the LLC. I am not a lawyer so might want to double check this but I have also been told that you can even avoid that by having the LLC lease the equipment/property from another entity (i.e. you personally). Hope its true.

[GeneralStark]

Generally speaking, as there are many legal variables at work here, an LLC or a corp will not protect an individual or sole-proprietor. For instance, my business is an LLC ,but I am the sole owner of the LLC so there is only one person that is responsible. In this case, I have very limited legal protection because there is no other option.

Liability insurance is much better protection and anyone selling at a farmer's market should have this. Many markets require it.