Business launch planning: specifically, how long can I take a loss on taxes?

[paradisi]

First of all...anyone who makes any kind a PCP (personal care product) for sale to the public, whether it regulated by the FDA (cosmetic and drug products) or by the CPSC (true soap), should be following good manufacturing processes and guidelines and keeping records. However, as you yourself have pointed out with regard to 'safety substantiation'...it applies to folks who are making COSMETICS. If someone is just making [true] soap, it doesn't. BUTT...as I just said, anyone who makes any kind of personal care product should be following good manufacturing processes and guidelines and keeping records.

As for the second line...I just said that so what exactly is your point? Again, the majority of folks here will be exempt as they will be considered a "small business"; they will NOT have to register the facility or products with the FDA, NOR will they have to follow the increased regulations that will be coming out.

The ONLY thing that I see that is going to change anything for me and other "small business" is the need to identify any Fragrance Allergens in my Ingredients labels and that's not something that we even have to worry about for a couple of more years because as is typical with the US government, their mouth is writing checks their body can't cash. Even though the MoCRA takes effect 01/01/2024...the FDA hasn't created a list yet and they aren't even required to provide a PROPOSED list until 06/19/2024 and then they have until 01/19/2025 to come up with a Final List. And then folks have until 01/19/2026 to update their labels...which is probably get stretched out until 2027...or 2028...or 2029. In fact, in the SG article it says: The requirement to identify fragrance allergens in your cosmetic ingredient declarations is still several years out. Given that I have lost (discontinued) almost a dozen fragrances over the last several years, I'll probably be retired from my day job (less than five years away) before I have to worry about it.

I'm not sure why this upsets you..I don't mean to. It's just paperwork we'll all have to do if we make and or sell cosmetics.

My point is that everyone selling cosmetics in the USA is required as of January 1 2024 to substantiate safety. That's not "should", or my opinion, it's Federal regulation. That means having on hand documentation if the FDA wants to see it. Do I have any idea if they'll ask small fry sellers who aren't making ridiculous claims? I do not. But those are the new rules.

There was a comment period to voice our ideas on these new rules, I hope lots of people took the time to comment. The Soap Guild did, the Indie business group, etc. And this is what we ended up with.

Smaller businesses *are exempt from the GMP regulation* but not the safety substantiation (or fragrance allergen listing; the comprehensive list of those isn't out yet and won't be til later on).

The Guild even have provided, for free, sample templates for collecting documentation and will be releasing a list of such notes for many common ingredients to make small sellers' lives easier.

Note that cosmetics made in the US are by and large already safe, and except for revealing allergens for those who know what to look for, I'm not sure safety will be improved very noticeably by this. I'm myself more concerned with the anti preservative movement & banning of safe preservatives.
But this is the new framework.

 

[AliOop]

Smaller businesses *are exempt from the GMP regulation* but not the safety substantiation (or fragrance allergen listing;

Finding out about the safety substantiation was the most important piece for me when I took the quiz using the helpful link you posted, @paradisi. Although this would only apply to cosmetics, and thus most soap would be exempted, their definition does include shave soap.

I highly recommend to everyone who sells any product, including any kind of soap: follow the link posted by Paradisi, above, as the quiz is very informative, and HSCG includes sample forms with sample language for the safety substantiation. That alone is worth your time spent going through the quiz!

 

[TheGecko]

I'm not sure why this upsets you..I don't mean to. It's just paperwork we'll all have to do if we make and or sell cosmetics.

My point is that everyone selling cosmetics in the USA is required as of January 1 2024 to substantiate safety. That's not "should", or my opinion, it's Federal regulation. That means having on hand documentation if the FDA wants to see it. Do I have any idea if they'll ask small fry sellers who aren't making ridiculous claims? I do not. But those are the new rules.

There was a comment period to voice our ideas on these new rules, I hope lots of people took the time to comment. The Soap Guild did, the Indie business group, etc. And this is what we ended up with.

Smaller businesses *are exempt from the GMP regulation* but not the safety substantiation (or fragrance allergen listing; the comprehensive list of those isn't out yet and won't be til later on).

The Guild even have provided, for free, sample templates for collecting documentation and will be releasing a list of such notes for many common ingredients to make small sellers' lives easier.

Note that cosmetics made in the US are by and large already safe, and except for revealing allergens for those who know what to look for, I'm not sure safety will be improved very noticeably by this. I'm myself more concerned with the anti preservative movement & banning of safe preservatives.
But this is the new framework.

I'm not upset, I'm trying to forestall confusion since we were talking about SOAP and you brought up new regulations for...COSMETICS. As such, NONE of this is going to apply to the folks who are making soap for family and friend and/or the majority of those who only make regular soap. And by 'regular soap' I mean 'true soap', NOT soap that falls under cosmetic or drug guidelines.

Perhaps it would be better to put this in a separate thread and then be clear about who this does and does not apply to.

And there absolutely is a "should" (used to indicate obligation, duty).