Homemade go-kart laws?

Laws about selling homemade soap in California, insurance, taxes, licensing, certification or anything else?

• I want to sell my homemade soap in salons, other businesses and to friends. I have people who are willing to do that but I do not know what the laws are in California. I make my soap with lard, water, lye and sometimes goat milk, cinnamon, coffee or oatmeal. Most of it is fragrance free and color free. I am not sure if that means that it is hypoallergenic or not. What am I legally liable for? What if I give it away? What do I need to set up a legitimate business selling home made toiletries? Any suggestions?

• Answer:

  The only law, is that you must have workers comp for your employees. If you advertise your product as "hypoallergenic", expect to be sued - some people ARE allergic to oatmeal, or lard, or goat milk. You are legally liable for ANY DAMAGES caused by your product. Period. Someone uses it the night before their wedding and gets a rash, expect a lawsuit. If you give it away, you can still be liable - you are the manufacturer! You can't "get out of" liability by giving the product away rather than selling. I'll tell you, though, you won't find any stores or businesses or salons to let you sell your product, unless you have PRODUCT LIABILITY coverage. It starts at $2500. You really need to sit down with an attorney, who can show you how to structure your business to best protect yourself. You also need to sit down with your insurance agent, to find out all the ways that the business is NOT covered under your homeowners policy - and to see which coverages are EXCLUDED under your homeowners policy, if you're running a business out of your home. It would really stink if you had a fire while producing soap, and your homeowners company denied the claim.