Manufacturing Liability

[arthur.reid]

I am manufacturing a product for a small business, once I am done with the product I basically sell or am paid for the item that I am making.

That being said - once I sell the product to the small business (which is a LLC and has a patient on the item) does the product become their liability? In other words am I responsibility for the item anymore or do they take sole responsibility being that they now own the product that I made for them?

I plan on making myself a LLC or S-corporation down the road sometime in the next couple of months once I move states from WA to CO (closer to family) but for now I am more than likely just going to stay a sole proprietorship... I just want to make sure that my possibility for getting legally burnt is at a minimum.

Any help would be much appreciated

PS - This is a low risk item that is more or less a aesthetic piece of art, no moving parts or anything that can really detach from the product at all.

Congratulations on your business. It sounds like you have a very low risk of liability based on your description of the product. However, the two most important steps you can take are business entity formation (i.e. incorporation, LLC) and liability insurance. You could do both for modest sums. The ideal approach would be to speak with legal counsel about both matters and the best structure for your particular needs. You could get a referral by going to the WLD main page. They have business law attorneys all over. Hope things go well. AJJ