Curt Harrington
Aug 9, 2017 · 1 min read

I write and teach on this same issue, but I believe in being much more specific on HOW the startup can “Look Out” for itself. Most agencies (government) tell ya what to do to BENEFIT THEM instead of how to best survive. Here is a simple example. If you have a new product and want to try it out. Most startups run to the state sales tax office and start filling out papers because its free. NO. If you enter their system, they may likely send an audit notice in 4 years time. By that time you may (a) have left the state, (b) may be distributing through another mechanism, and may never have sold anything personally. The time and expense to prove that you haven’t is going to be costly and aggravating. Look to the sales you might make that don’t involve putting you in the cross hairs. Most states have a de minimis rule that says you can have some sales over a short period without having to register. Consider doing sample consignments to out of state sellers. Consider drumming up sales in another set of states for statistical experimentation purposes. Much will depend on the item, its cost, and how its normally distributed. The article has more on looking out for a startup’s economic interest on my website library at PATENTAX dot com.