Any other precautions that I can take not to be sued. Product testing is a fortune that I do not have. Products are simple and clearly stated on my label.
Rosanne E. FelicelloAntitrust / Trade AttorneyNew York, NYNY licensed ·
I agree that you need to be sure to maintain the corporate formalities. You may want to consider raising funds to conduct product testing before you bring your products to market. You also should be sure to purchase liability insurance.
Even if you take the utmost precautions, you may still be sued. The question is whether you are likely to be found personally liable. If you maintain the corporate formalities and take the necessary legal steps to safeguard your personal property, you should be able to avoid personal liability greater than your personal investment in the corporation.
Whoa. Yeah, lots of precautions, and considerable personal liability if you market some product that you can't afford to pay to test which injures someone who sues both you and your company.
There are potential regulatory, trademark, and advertising issues, and if you can't afford basic safety tests, you mgiht want to consider another line of business.
Presumably, you formed a New York Corporation. To avoid personal liability you need to follow corporate formality. Don't intermingle corporate funds with personal funds. Keep separate bank accounts. Hold annual meetings. Keep records. File necessary forms with the State. Pay Franchise and sales taxes, etc.
Even with corporate formality, you need to purchase insurance.
Lots of beauty products companies have started on a shoe string. If you cannot test the product, you probably should not be in business. At a minimum, you need to gather all available literature on each component product to determine if they are safe for human application, and you should probably consult with a chemist, and an attorney about your labels and product safety.