Sampling and Licenses

On Mar 9, 2014, at 1:30 AM, T M wrote:

John:

Thank you for the sample contract.

I have two more question.
A. on the timing of registering the business entity
B. on meeting the Chinese

A. since it will be a few months before I have a sample in my hand, I am considering waiting until I get my first order before registering the business entity. I would paying fees for months with no income coming in. 

***right... of course...***

But this depends on a few factors:

1. If I contact the HK government office to ask for the names of the top suppliers of cast aluminum cookware, they might not take me seriously unless I show them that I have a registered company?  Will they check this or can I wing it?

***No one will ever ask...  no one cares...  your money talks...  and the focus will be on the retailers who said "it is a good idea and does not exist, " not on you....***

2. When I talk to the designers in USA and factory rep in HK, will they want proof that I have a registered company in order to give me factory references?

***Again,  the focus will be on the retailers who said "it is a good idea and does not exist, " not on you....***

By the time I have the first sample in my hand in San Francisco, I will need to have a wholesale license in order to negotiate with the buyers, and I would need this before I negotiate with sales reps in the USA.

*** I don't think so...negotiating and writing orders is not a business, selling goods (defined as placing on a common carrier against and order) is a business.  Orders are paperwork, and orders are not sales. Any license is a registration with tax collecting authorities.  No sales, not income to tax.  Wait until you have income to be taxed before applying for the privilege to be taxed.***

So this would be the time to register the business. 

***I don't think so... per above.***

I am wondering if I can wing it through the HK phase of development. 

***You need not wing anything when no one cares and it is not necessary.  What you cannot wing is what people care about, and that is market in USA.   The focus will be on the retailers who said "it is a good idea and does not exist, " not on you.... do what matters, forget about what does not matter and no one cares.***

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