I run a small LLC that sells home goods. I'm thinking of buying products from a manufacturer and putting my own label on them. Is that legal? Do I need a special agreement? Any advice appreciated.
Can my LLC sell products made by another company under its own brand?
Yes, it's called private labeling. Totally legal as long as you have a contract with the manufacturer. Get a lawyer to draft it.
Oh sure, just slap your name on someone else's work. What could go wrong? (Seriously though, check trademark and liability.)
Thanks Paul. Sue, I'm not trying to cheat anyone, just exploring options. Liability is a good point though.
Private labeling is super common. Make sure the manufacturer doesn't sell the same product under a different brand in your area – you want exclusivity if possible.
You'll also want to check if the product has any existing patents or trademarks. If the manufacturer owns them, you need a license to rebrrand. And product liability insurance is a must.
LegalBeagle, good point about patents. OP, also think about quality control. If the product is defective, your brand takes the hit.
And don't forget to actually read the contract. Shocking, I know.
I'm following this because I'm curious too. Is it expensive to set up? Like, do you need a minimum order?
Nina, from what I've seen, minimums vary. Some manufacturers require 100+ units. I'm Still shopping around.
Also check if the manufacturer will drop-ship or if you need to handle fulfillment. That changes your logistics.
One more thing: if you're selling online, make sure you comply with FTC labeling rules. Your brand name and address need to be on the product or packaging.
And don't forget about returns. Who handles them? The manufacturer or you? Get it in writing.