What does it take to legally open a nutrition supplement brand in Aliso Viejo, CA?

Seth wrote: “We sell our own nutrition products manufactured by a third party that is approved. We're starting from home, selling in the US only on Amazon and our own website, and will try to get into retail stores as well.”

Hi Seth, Assist Nutrition sounds like a promising venture. Using a contract manufacturer lets you focus on branding and marketing while experienced partners handle production. In this answer you will find the business structure, the tax registrations, and the local and industry licenses for Assist Nutrition, plus a short recap at the end.

Supplements aren't approved before sale the way drugs are, so what matters is that your manufacturer follows good manufacturing practices and that your labels and claims are accurate. Selling in California also means checking whether any ingredient needs a Proposition 65 warning. Amazon collects tax on its own orders, but website sales need a California seller's permit, and retail stores will ask about product liability insurance.

What Assist Nutrition needs

1. LLC (business structure) – Forming an LLC puts a legal wall between the business and your personal assets. If a customer has a bad reaction to your supplement, an LLC helps keep the claim against the brand and your home protected.
2. California fictitious business name statement – If you operate as a sole proprietor, or under a name different from your LLC's exact legal name, registering "Assist Nutrition" lets you use it on signs, invoices, and your business bank account.
3. EIN (federal tax ID number) – You plan on 2 employees, so the federal tax ID number (EIN) is required for payroll, and you will also use it for the business bank account and supplier accounts.
4. California seller's permit – You will be selling taxable goods, so register to collect sales tax before your first sale. It also lets you buy inventory for resale without paying tax on it.
5. California employer ID – With 2 employees, you need a state employer account number for payroll withholding and unemployment insurance. It works like the EIN, but for state payroll taxes.
6. Business license – Most places require a local business license to operate, including home-based businesses. Check the rules where Assist Nutrition will operate in Aliso Viejo, and ask about home occupation and zoning rules if you work from home.

By the numbers: Banks, insurers, and tax forms will ask for your industry code. For a nutrition supplement brand it is NAICS 446191 (Food Health Supplement Stores), 456191 under the 2022 update. With 2 employees planned, you are already creating jobs in Aliso Viejo. That makes 6 items on your list.

Tip: Avoid claims that your products cure or treat diseases, since that turns a supplement into an unapproved drug.

To recap: Assist Nutrition in Aliso Viejo, CA needs an LLC, a DBA, an EIN, a sales tax permit, a state employer ID, and a business license. Handle these early and the business starts on solid ground.

BusinessNameUSA can prepare and file these registrations for you: start your order.