Should I go "Pro"?

[Cygnus X1]

Is there any advantage to applying for LLC, or INC?
Or using my Fed Tax ID (I have one from running the retail store twenty years ago) to be able to buy parts from wholesale sources?

Or should I just continue on the hobby path to build and sell?

Opinions please.

[M Fowler]

Incorporating is best for liability incase of lawsuits so your personal assests cannot be touched.

Not necessary for this line of work in my opinion but other experts can interject. Now when I owned and operated Snooty's Bar & Grill it was necessary as the fools would get drunk in another small town bar end up at my place plastered and if I served them and they got into an accident the liability falls on the places that served the individual. I know this from experience and people/insurance companys are sue happy.

I am going with a state license as a Federal tax ID is not needed unless you are employing workers. I checked with city and they do not require me to be licensed for this line of work.

Mark

[sliberty]

I was able to open an account with CE Dist just by providing a company name. They didn't ask for anythign else.

[Cygnus X1]

Tube amps are generally considered "use at your own risk" type devices anyways aren't they?

I know I'm not going the RHOS (or whatever) compliant.
I use the real deal for solder.

CE didn't even ask for a Fed Tax #?

[sliberty]

Tube amps are generally considered "use at your own risk" type devices anyways aren't they?

I am not sure this is true. Any amp you buy in GC probably has a UL notice on it, and thus must adhere to certain electrical safety standards.

[Cygnus X1]

I build mine to UL standards-I guess.
I'd hate to think of what a certification would actually cost.

I guess my real question is-what do I need to do if I decide I want to sell a legally manufactured amplifier within North America, or just the US?

I am going against my better judgment in even considering it.
First thing I would need is a manufacturing facility.
And a lawyer familiar in similar ventures.
Copyrights are bogus in the amp world AFAIK.
(Not that I'm directly ripping off anyone else's designs).

If I can't get parts in quantity for a substantial discount
then it really isn't worth it I guess.
Just keep going the way I am headed, and hope someone doesn't blow up something by doing the wrong thing with the amp(s).
That's scary enough!

[skyboltone]

Is there any advantage to applying for LLC, or INC?
Or using my Fed Tax ID (I have one from running the retail store twenty years ago) to be able to buy parts from wholesale sources?

Or should I just continue on the hobby path to build and sell?

Opinions please.

You know, I talked to George Metropolous a while back and we got to whining about business in general. George is in the way big time compared to me, with thousands of kits out there. He told me he was going to go back to his former line of work because he wasn't makin' the bills.

In short: Don't guit your day job.

[rfgordon]

Here in the Commonwealth of Virginia, you can operate a business without a state business license or tax ID number under the "occasional seller" clause in the state's tax code. If I get a tax ID number, then I have to file monthly sales tax reports and do other paperwork.

On the down side, no tax ID means no NAMM membership, and some suppliers would give me a price break.

[Structo]

I don't know how all the small time builders are making it.

I mean, just look through a magazine like Premier Guitar or Vintage Guitar and you will see a lot of them. And those are just the ones that advertise in a national publication.

I'm sure we'll see quite of few of them fade away.

Companies like Two Rock and Fuchs can probably stand the famine but I feel sorry for the guys that have a great product but no capital to keep it going.

[Cygnus X1]

Thanks all.
Yes, that was my first reaction-looking at VG mag.
There are far too many taking up every imaginable size of ad space there is including the classifieds section.

And then there is the competition from the major manufacturers making cheap surface mounted tube
amps. Many buyers just know it has tubes.
They don't know the dang things are virtually unserviceable.
And for the prices-who cares?

It's gotten so bad among that set they sniff at hand wired as if there is something wrong with the concept.

Once again (with y'all's wisdom)I've talked myself out of it.
Doesn't mean I'll stop building.
Building for a profit is a sure way to kill the passion though isn't it?

[M Fowler]

Get your local music store involved with your once in awhile amp building to let others around town know there is a guy out there that can build you a custom tube amp. Ask if you can bring one of your amps in to let people demo for awhile under their supervision. Or just advertise locally and see what happens. The next step is to host a website.

Or just build for yourself and be happy. I have so many projects lined up for myself that any potential customers are going to have to pay up front 50% and wait. I need trannies and my Edcor order has a 4 week waiting period, rats. I think I will place another order right away so I don't have to wait.

Mark

[Structo]

Yes, that is a good idea.
Just build one to sell once in a while. Of course you probably won't get a very big hourly rate for your time depending how long it takes to solder one together but it would still be cool to get one in the hands of a good local guitarist.

Did you have a circuit in mind to market?

[Cygnus X1]

Yes, that is a good idea.
Just build one to sell once in a while. Of course you probably won't get a very big hourly rate for your time depending how long it takes to solder one together but it would still be cool to get one in the hands of a good local guitarist.

Did you have a circuit in mind to market?

I'm almost 100 percent sure it would violate a rule or two to mention what it is. But I've sold one variant and another is posted already.

I do both conversions and build new ones to sell once in a while.
My weakness is cabs.
I just can't seem to get any enjoyment out of building them and it takes me weeks.
Then I rush them in the end just to get them done.
...And paying 200+ for a cab is out of the question.

[Andy Le Blanc]

Its how much you owe, if you have any due your screwed. Or, you gather
investment capital, and take on more risk, and if it doesn't fly then your screwed.
Its very easy start a failure by throwing money at it, most start ups are a delusion.
But, if you can stand it, you build a "NAME" slowly by offering a diversified
range of products and services. You can make something besides a
guitar amp right? Can you design, manufacture, promote and distribute
your product in your sales area? Can you make a sale? If whatever you do
does not translate into a cash flow you need to choose something else.
The dreamer didn't fail for lack of effort, he chose the wrong dream.