RikaKazak Posted May 29, 2013 Share Posted May 29, 2013 So I'm brand new to the vending world. And I'm completely lost on what to do and would love some help. Situation: This friday (may 31st) I have 2 cotton candy vending machines being delivered to my house. And I have no site yet for placement (they're just going to be stored in my garage so I can operate them, clean them, get to know the machine inside and out, etc.). Problem is I live RIGHT on the washington/idaho border. I technically live in Idaho. I don't know where these machines are going to go, so I don't know which state sales tax stamp to get. I don't know which city the machines will be in (there's 4 to choose from) so I don't know which city business license I need to get, etc. etc. etc. I'm assuming that my best form of action is to form an LLC (did that, incorporated in Idaho, just waiting on the paperwork back from legalzoom) and then find a place to put the machine. After I find a place to put the machine, then I get the appropriate licenses/permits/etc.?!?!?! Is that what you guys did? I just hate approaching a place, then coming off as unprofessional because I don't already have the permits/licenses/stamps ready to go. But at the same time, I have no idea where these machines will end up so I don't know which permits/stamps I'll even need. What would you guys do if you were me? Please help Link to comment Share on other sites More sharing options...
AZVendor Posted May 30, 2013 Share Posted May 30, 2013 I honestly wouldn't worry about it until you have some locations set up and running on a permanent basis. I doubt that any location will ask you about any of the permits or licenses you spoke of and you can wait until you know where they will be before looking into that stuff. You can also tell them, if they ask, that you had to wait to see where they would be placed before you got licensed. Link to comment Share on other sites More sharing options...
mjacks Posted May 30, 2013 Share Posted May 30, 2013 What he said. Wait to know where they are going to be first and I seriously doubt any business owner will care about the permits unless some government person comes snooping around. It it is anything like down here the chances of a tax collector seeing your machine with out permits for the amount of time it would be on location would be slim to none. Also, just curious, can you post up the info on the machines you bought? Just want to check it out. Link to comment Share on other sites More sharing options...
RikaKazak Posted May 31, 2013 Author Share Posted May 31, 2013 Unfortunately the truck got delayed until tuesday. Guess I have a few more days of waiting The machines I got are used, so there's no "link" I can really send you mjacks. I got the vendever machines though, so if you just google "vendever cotton candy vending machine" you can find all the info about them. They're about $9K new when you factor in all of the shipping costs and add ons...hopefully they'll be able to be worthwhile investments Link to comment Share on other sites More sharing options...
mission vending Posted May 31, 2013 Share Posted May 31, 2013 So I'm brand new to the vending world. And I'm completely lost on what to do and would love some help. Situation: This friday (may 31st) I have 2 cotton candy vending machines being delivered to my house. And I have no site yet for placement (they're just going to be stored in my garage so I can operate them, clean them, get to know the machine inside and out, etc.). Problem is I live RIGHT on the washington/idaho border. I technically live in Idaho. I don't know where these machines are going to go, so I don't know which state sales tax stamp to get. I don't know which city the machines will be in (there's 4 to choose from) so I don't know which city business license I need to get, etc. etc. etc. I'm assuming that my best form of action is to form an LLC (did that, incorporated in Idaho, just waiting on the paperwork back from legalzoom) and then find a place to put the machine. After I find a place to put the machine, then I get the appropriate licenses/permits/etc.?!?!?! Is that what you guys did? I just hate approaching a place, then coming off as unprofessional because I don't already have the permits/licenses/stamps ready to go. But at the same time, I have no idea where these machines will end up so I don't know which permits/stamps I'll even need. What would you guys do if you were me? Please help Like previously mentioned, learn how to operate them and get them on location. In almost 20 years of this I've never had a location ask about permits and licenses. That doesn't mean we are giving you a green light to operate without getting the necessary licenses until you get caught. Link to comment Share on other sites More sharing options...
Walta Posted June 1, 2013 Share Posted June 1, 2013 The location may not care much. But other vender in town may turn you in if you have unlicensed machine on location. Be sure to buy liability insurance before they get to location. Walta Link to comment Share on other sites More sharing options...
RikaKazak Posted June 1, 2013 Author Share Posted June 1, 2013 The location may not care much. But other vender in town may turn you in if you have unlicensed machine on location. Be sure to buy liability insurance before they get to location. Walta Why would I need liability insurance if I put them into an LLC? I mean, I could get sued and lose my two machines, but that's my max liability right? (or is there something I'm missing? I'm brand new to vending so I could easily be missing something) Thanks for the tip about other venders turning me in. Hadn't thought of that. Link to comment Share on other sites More sharing options...
moondog Posted June 2, 2013 Share Posted June 2, 2013 Liability insurance protects both you and the location in the event that something catastrophic happens - not too sure what that might be with a cotton candy machine. Your potential exposure may be limited, but your customer probably will have much more to lose and deeper pockets. Link to comment Share on other sites More sharing options...
Walta Posted June 5, 2013 Share Posted June 5, 2013 What could go wrong molten sugar, moving parts, on attendant and someone will try to eat anything this machine spits out. I hope everything works out but one loose screw ends up on someone mouth and we are off to the lawyers. Walta Link to comment Share on other sites More sharing options...
RikaKazak Posted June 5, 2013 Author Share Posted June 5, 2013 What could go wrong molten sugar, moving parts, on attendant and someone will try to eat anything this machine spits out. I hope everything works out but one loose screw ends up on someone mouth and we are off to the lawyers. Walta I understand there's a reasonable chance I could get sued. What I don't get is; why get liability insurance? Worst case scenario, day 1 I get sued, lose over $15,000 (which is how much I put into the LLC) and then I lose the machines/cash in my banking account. In regards to the site location getting sued, that's up to them to get the proper level of insurance/asset protection, not me (in my opinion). If they have a business worth a lot of money, it's on them to get an umbrella policy or something like that. I don't want to pay so they're protected. (just like how if my machine gets stolen their insurance wouldn't cover me) I really appreciate the advice on everything else guys. I just don't get the "you need liability insurance" advice though. Link to comment Share on other sites More sharing options...
AZVendor Posted June 5, 2013 Share Posted June 5, 2013 If you don't have business liability insurance and someone gets sick from your product or gets hurt by a pinched finger or an electric shock or just feels like the machine looked at them wrong, then sues you and wins, you will lose any assets you own. The location you place your machine in is not liable for injury from your machine or your product, you are. It's as simple as that. As you can imagine, most small vendors don't have insurance because they don't know about it, can't pay for it, don't want to pay for it, etcetera. You do what you feel is best for you, but if you are in this business for the long haul, you will need Business Liability insurance with a Completed Products rider. Link to comment Share on other sites More sharing options...
Walta Posted June 5, 2013 Share Posted June 5, 2013 Lets imagine you in court there lawyer portrays you as the rich heartless business owner who knew his machine could injure and permanently disfigure this 6 year old girl. And on your side we have a legal zoom LLC with no assets. Will you bet everything you own the little girl’s lawyer can’t find a way to let the jury (that now hates you) give that girl more than 1500.00? I would be surprised if the policy cost more than $325.00 Walta Link to comment Share on other sites More sharing options...
RikaKazak Posted June 6, 2013 Author Share Posted June 6, 2013 I first off really want to thank walta and azvendor for taking the time to respond. I reread my post (and didn't like how I came off). In real life I'm one of those guys that plays devil's advocate as a way to learn more about a situation. Online, that sometimes comes off like I'm a jerk In addition I'm HORRIBLE at writing/english/reading so I don't articulate my thoughts very well. With that said, I appreciate you guys further clarifying your side of the argument, and I certainly get what you guys are saying. I'm going to look into the cost of liability insurance tomorrow Link to comment Share on other sites More sharing options...
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