Questions on becoming a distributor

[Tirnaz]

What is the name of your state (only U.S. law)? Indiana

I think this is the right fourm for this. I am looking to be a reseller of a weight loss supplement. Basically I will be buying their product in bulk and reselling it for their recommended price. The company, AMS Health Sciences provided me with their Policies and Procedures Manual (http://www.sabaforlife.com/backoffice/pdfs/SabaPolicies&Procedures.pdf) The manual says as an associate I will be an independent contractor and I am confused on some points.

-Do I need to setup as a small business or self employment?
-Do I need to charge sales tax on the product? Indiana charges 7% on supplements, but the company is based out of Oklahoma.
-Would liability insurance be worth it?

 

[tranquility]

What is the name of your state (only U.S. law)? Indiana

I think this is the right fourm for this. I am looking to be a reseller of a weight loss supplement. Basically I will be buying their product in bulk and reselling it for their recommended price. The company, AMS Health Sciences provided me with their Policies and Procedures Manual (http://www.sabaforlife.com/backoffice/pdfs/SabaPolicies&Procedures.pdf) The manual says as an associate I will be an independent contractor and I am confused on some points.

-Do I need to setup as a small business or self employment?
-Do I need to charge sales tax on the product? Indiana charges 7% on supplements, but the company is based out of Oklahoma.
-Would liability insurance be worth it?

The manner of business organization reflects specific goals, which you have not mentioned. So, I express no opinion. You need to charge sales tax to all venues you have "nexus". This is a legal term. See an attorney or tax professional. I LOVE liability insurance. Almost better than corporate structure to prevent liability. At the very least, they provide a defense to suit. For weight loss? Um..for weight loss where a number of large companies took huge losses for their clients..a...dying, I'd say yes.

 

[LdiJ]

What is the name of your state (only U.S. law)? Indiana

I think this is the right fourm for this. I am looking to be a reseller of a weight loss supplement. Basically I will be buying their product in bulk and reselling it for their recommended price. The company, AMS Health Sciences provided me with their Policies and Procedures Manual (http://www.sabaforlife.com/backoffice/pdfs/SabaPolicies&Procedures.pdf) The manual says as an associate I will be an independent contractor and I am confused on some points.

-Do I need to setup as a small business or self employment?
-Do I need to charge sales tax on the product? Indiana charges 7% on supplements, but the company is based out of Oklahoma.
-Would liability insurance be worth it?

Yes, you would absolutely have to collect sales tax and remit it to the state of Indiana. Yes, you would be making a huge mistake not to have liability insurance. Whether you set up as a small business or as a sole proprietor is a business choice.