pic: MVRE-109, high-recision shafted encoder

[DaveL]

This sounds like a great product. More capable than a Grayhill and at 1/3 the cost. Starting a business is a very exciting time!

As others have said, you might need an approval from an electronic equipment certifying agency like UL. If you decide to sell thru Digi-Key, they may have additional requirements.

Let me know if you need help creating a website.

If you expect to ramp up production, you can form an limited liability Company (LLC) and run it as a sole proprietor for tax and liability reasons. I would expect you can do this for free. However, Calif may require payment for a state business license.

In Washington, you can get free business help thru the library from retired accountants. Maybe there is something like this in your state.

When filling out your taxes, your business expenses can be claimed as a "pass thru activity". Just fill out a few extra pages on a 1040 form. Use Turbo Tax to help.

Doing it this way also allows you to deduct all expenses related to creating this product including computers (may have to deprecate), cost of the room used to build and mail the product, plus the cost of furniture and machining equipment.

Dave
Build Mentor and Past UX Design Consultant