Hi all,
It's been 2 years since I designed, developed and manufactured an electronic gadget for a niche sport and all is going well.
Last year I covered all my development costs and made 10k profit selling internationally in over 25 countries.
This year i expect to double my profits and maybe more as some magazine are running editorials my product.
Now I'm starting to make money I decided to start an LLC and got some legal advice which has crushed my plans...
The attorney told me even with an LLC I could still get sued personally and lose everything and that I'd be insane to sell anything without product liability insurance.
Well it turns out product liability insurance is very expensive for sports equipment as I could be sued if someone dies whilst using my device (even if it had nothing to do with it). Premiums are also jacked up for every country I sell to as I'd need international attorneys to defend me.
The reason the LLC won't protect me is that I'd need show I operated the company in a safe way by appropriate testing and certification of the electronics (FCC, CE mark, UL etc) are all 10k+ each.
I'm only making a little profit on this anyway and there's no future market that would ever cover the costs involved...
Any thoughts or inspiration greatly appreciated. I worked my a$$ off for two years and now I'm thinking my only option is to shut it down....
It's been 2 years since I designed, developed and manufactured an electronic gadget for a niche sport and all is going well.
Last year I covered all my development costs and made 10k profit selling internationally in over 25 countries.
This year i expect to double my profits and maybe more as some magazine are running editorials my product.
Now I'm starting to make money I decided to start an LLC and got some legal advice which has crushed my plans...
The attorney told me even with an LLC I could still get sued personally and lose everything and that I'd be insane to sell anything without product liability insurance.
Well it turns out product liability insurance is very expensive for sports equipment as I could be sued if someone dies whilst using my device (even if it had nothing to do with it). Premiums are also jacked up for every country I sell to as I'd need international attorneys to defend me.
The reason the LLC won't protect me is that I'd need show I operated the company in a safe way by appropriate testing and certification of the electronics (FCC, CE mark, UL etc) are all 10k+ each.
I'm only making a little profit on this anyway and there's no future market that would ever cover the costs involved...
Any thoughts or inspiration greatly appreciated. I worked my a$$ off for two years and now I'm thinking my only option is to shut it down....
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Membership Required: Upgrade to Expose Nearly 1,000,000 Posts
Ready to Unleash the Millionaire Entrepreneur in You?
Become a member of the Fastlane Forum, the private community founded by best-selling author and multi-millionaire entrepreneur MJ DeMarco. Since 2007, MJ DeMarco has poured his heart and soul into the Fastlane Forum, helping entrepreneurs reclaim their time, win their financial freedom, and live their best life.
With more than 39,000 posts packed with insights, strategies, and advice, you’re not just a member—you’re stepping into MJ’s inner-circle, a place where you’ll never be left alone.
Become a member and gain immediate access to...
- Active Community: Ever join a community only to find it DEAD? Not at Fastlane! As you can see from our home page, life-changing content is posted dozens of times daily.
- Exclusive Insights: Direct access to MJ DeMarco’s daily contributions and wisdom.
- Powerful Networking Opportunities: Connect with a diverse group of successful entrepreneurs who can offer mentorship, collaboration, and opportunities.
- Proven Strategies: Learn from the best in the business, with actionable advice and strategies that can accelerate your success.
"You are the average of the five people you surround yourself with the most..."
Who are you surrounding yourself with? Surround yourself with millionaire success. Join Fastlane today!
Join Today
