Teach Soap

So I haven't been selling really... i sold a couple things to immediate family, but nothing serious. Mostly I have been playing around at home, trying to get all my products perfect & the way I want them for the last several months. This Friday I was going to go file and do all the paperwork and licensing, etc to get started. Then I got this message from my cousin. I have a FB page, and although I'm not selling yet, I'm trying to get more friends to my fb page, so my cousin reccomeneded it to a girlfriend of hers, and this was what she said back to her.

"Saw your post for your cousins businesst. A word of warning, which may or may not apply to her. I was going to do the same thing when we moved here to GA. The only thing you can do safely is soap. Once you venture into bath bombs, lotions, salts, bubble baths, tea baths, etc. you have just entered into a cosmetics catagory. If you are not licensed to do cosmetics (and it is a long list of things you have to do, mainly it can not be done out of your home) you are under strict guidelines, etc. If she gets caught without having the needed license, and what not, there is a HUGE penatly. Just to do soap, I had to carry a million dollar insurance policy. With putting this out there like she has, with being on FB and saying she is doing it out of her home, she is opening herself up to a huge lawsuit if she isn't doing it by the book. Just thought I would give you a heads up as to what I found out 2 years ago when I went to do it."


Now, I realize that cosmetics do require different labeling, and the only thing I have sold at all like that salt scrub. I was planning on doing all those other things, pretty much bath bombs, teas, salt scrubs, and then using premade bases for bubble baths lotion etc. I realize there are legal requirements and regulations different for cosmetics than soap. But has anyone heard about not being able to make bath bombs in your home? I am going to get a business license but I wonder if she meant a license to make sell/specifically cosmetics. While I do live in a different state (Mississippi) than her, I have not heard anything about that. I know the tax asessor's office, and the sec of state are who I have to register my business name, and tax stuff, and then I need a "business license" which is actually pretty cheap. I have to pay a $300 cash bond to work out of my home. I also know I need (and will get) insurance before I sell.

But Does anyone know what she is talking about?

I'm sorry, I probably should have posted this in the "off topic"...I was thinking post it here since shampoos, fizzies etc are considered cosmetics. Sorry!! Still any help would be appreciated.

Why would she say legally you can not have a cosmetics business (making, and selling lotion bath fizzies etc) from home? I just want to make sure I am not missing something. I know they say that testing is not required for cosmetics, unless there is some kind of problem. And you have to follow the guidelines for good practices like common sense stuff ...no "adulterated" or mislabeled products, don't make medicinal claims or it will be considered a drug, etc.
And I know I need to label the product where it was manufactured, any directions, and ingredients in descending order.

As far as the business part, I know I have to get a business license, I have to register my business name with the state as an s corp or LLC, I have to file the application (and eventually pay) for sales/use tax. And in my state I have to pay a $300 fee to the tax people because I operate out of my home rather than a storefront. But no one said anything about a specific license for selling cosmetics, and no one said I couldn't make/sell out of my home. Then again, just because someone is ignorant doesn't protect them from fees or fines etc with regard to breaking the law/regulations. So I don't want to assume. Do most of you not legally operate out of your home? Maybe she was thinking I was not going to legally register and get the business license and insurance and all that. I'm not sure.

Different states and even counties have different requirements. I would check with your city hall and see if that applies to your area. Where I live bath fizzies or lotions are not considered cosmetics. I don't do any medical claims either.

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Irena
Closed minds are like faulty parachutes; they refuse to open.

yeh, I figured different states might have different requirements. But I have scoured the FDA website and I see NOTHING about not being able to make "cosmetics" from home.

What I was going on for what is cosmetics or soap was this
http://www.fda.gov/Cosmetics/GuidanceCo ... 074201.htm
and this
video from Wholesale supplies plus really helped to calm me down.
http://www.wholesalesuppliesplus.com/Vi ... eoName=FDA

I think basically she was just freaked out (and I believe, misinterpreted the part about sterile work areas and having all your supplies kept separate and closed etc to mean that your home could not be considered a workspace if you had kids, a dog etc). Yes there are alot of rules and regulations but I think they are as much to keep us protected (so we know what could get us in trouble) and we just have to make sure we have a completely clean workspace and don't mislabel anything. Right?

I also know I need (and will get) insurance before I sell.

But, you state you are already selling to family and friends. I had my insurance in place before I gave any testers away of B & B and my candles. God forbid someone could have an allergic reaction to one of your products or burn their house down with one of your candles.

well it to me doesn't really count as selling. I have sold a couple bars of mp soap to my aunt, and a salt scrub to my mom and grandma but thats pretty much it. Mostly I have been waiting because I didn't want to get into selling and then have a problem like you said. You just never know.

Even if you give away your product and no money changes hands you could be held liable. I would get a liability insurance as soon as possible.

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Irena
Closed minds are like faulty parachutes; they refuse to open.

That is a good point. I checked with Bomba and they do not insure in my state, and the rep from RLI I spoke with today said they can't cover me because I do candles as well. So does anyone know another reliable company? I looked into the HSMG and may have to go with that but the $500 to shell out is alot when I am just starting out small.

I find many companies will not insure you as soon as they hear that you make candles. Check out the Soap Guild. http://www.soapguild.org/insurance.php
Just as long as you make soap, they will cover you for candles as well.

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Irena
Closed minds are like faulty parachutes; they refuse to open.

yes, that is what i meant when i said HSMG lol. I am a lazy typer, what can i say.

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Irena
Closed minds are like faulty parachutes; they refuse to open.

Anyone knows good and affordable insurance company if I'm not making candles?

the quote I got from RLI insurance the other day was around 250 I think. Alot of people on here mentioned them, so I called them to get a quote. But they do not insure if you do candles. Since you do not do candles, it doesn't hurt to check them out. Although I can't vouch for them personally, I know their name has come up alot in these forums.

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Shieh Design Studio
https://www.facebook.com/ShiehDesignStudio
http://soapandrestless.blogspot.com