How to get started on a private label program?

Question

I want to start a private label program with a nutrition products manufacturer, what are the things I need to take care of? Do I need to be a registered company? Do I need to apply for any license? Is a contract necessary? And other issues I need to be aware of??

Answer 1

Any company needs to be registered with the Secretary of State corporations division of their state if they intend to do business, unless you're doing it under your own name.

As for license, that depends on what you're reselling, but I suspect not.

As for contract, yes, you'd be nuts not to. If nothing else, to indemnify yourself against false claims. If you're reselling a product under your own name and it makes claims like "Increases your energy level", you can get sued if you can't prove your assertion, so you'd want some indemnification against the company that provided you the stuff to begin with (presumably you're selling their product under your name with their health claims).

Whether you need a license depends on the product and the state you live in. If it's against federal law they shouldn't be selling it at all, so I'll guess that any roadblock will be state law.