My Soap Business - Can't do it.

[brian0523]

Well I've been soaping for about a year and a half now, with the intent to sell soap at a local indoor flea market, online, and a few other opportunities.

Just this week I actually registered my business name with the state of New Jersey, and received my tax ID number, so I'm officially a business in NJ. Yea me right? Well not so fast! I get a call yesterday from my local township official. The man says he was informed by the State Dept of Taxation that I'm a new small business owner and I have to be issued a registration or permit for my business before I can begin making sales. He wants to know how the soap is made, which I fully explained. I also made it clear that this would be a very small operation, and that I expected to bring in less than $500 sales per month. He went on to explain that the State and Township require that I be issued a permit to make soap by the Department of Fire and Hazardous Materials. I need this permit because of the process melting oil, and storing a hazardous chemical (lye).

I explained to him that I don't store more than 5 pounds of lye, and that very little quantities of hard oils are used in my formulations. Apparently, that doesn't matter. There's also a regulation in place that I would have to install a professional grade stove and exhaust fan - costing about $5000. And my setup would be subject to random inspection, and if I'm in violation of these requirements I would be fined $2000 per incident.

Well at this point my head is spinning, I'm depressed, and I'm pissed-off big time!

I guess I'm looking for advice if anyone has come up against this when you opened a soaping business from your home. I don't know of any professional NJ soapers here who could help.

This is just so upsetting. I know rules/regulations are put in place to help ensure safety, but it's not like I'm storing enough lye to cause a fire or explosion. And the whole issue about the lye vapor being a fire hazard is just laughable.

 

[surf girl]

Is there any process by which you could apply for an exemption based on the small size of your enterprise?

 

[Bigmoose]

I can't belive it. WOW am I glad I did not have to go thru that. I am an honest person but you may think otherwise with what I say next. What if you made your soap and were to give it to a neighbor. Then your neighbor could open a soap buisness and when they hit him up with the safety stuff he can say "I don't make it, I just sell it".

I feel for you. I hope things improve for you.

Bruce

 

[7053joanne]

Wow! I'm in NJ too and actually called the town when I started my business to make sure I didn't have to get any permits or anything. They could have cared less.

 

[Tabitha]

My town also has a NO-SOAP policy. There is a list of things you can not do as a biz in the city limits. No soap making, not chicken slaughtering, etc.

How big is your town? Can you go before the city council & ask for an exemption? That is what i would do first.

Can you go to a friends house in the next town over & make it there?

 

[Lindy]

OMG - that is beyond nuts!!!! Is there someone you can go to in order to bypass them? Can you call your Governor's office or Representative or something? That is just beyond crazy......... :shock: :shock: :shock:

 

[ilovedoxies]

I suppose this is all a part of the economic stimulus plan to encourage people to work and earn an income in these "tough economic times".

I live in WV, it is extremely difficult to operate a small buisness here. Loads of taxes, fees, registrations, etc. WV even had out state slogan changed to "Open for Business" a few years ago. What a joke!

 

[Tabitha]

That is just beyond crazy.........

It realy isn't. Do you want your next door neighbor to store 500# of lye in their back yard, 20 feet from where your children play? HAZMAT must have rules governing such things.

I wouild think it would be pretty easy to get an exemption though for small qty if you go through the proper chanels.

 

[brian0523]

My town also has a NO-SOAP policy. There is a list of things you can not do as a biz in the city limits. No soap making, not chicken slaughtering, etc.

How big is your town? Can you go before the city council & ask for an exemption? That is what i would do first.

Can you go to a friends house in the next town over & make it there?

Thanks Tab - that's my next step in the process. I'm looking into it right now as we speak. How many hoops and how high can I jump to make what will amount to chicken scratch?

 

[brian0523]

Wow! I'm in NJ too and actually called the town when I started my business to make sure I didn't have to get any permits or anything. They could have cared less.

Joanne you lucked out! Are you in a more rural part of NJ? I'm in Burlington county.

 

[brian0523]

You know I'm thanking God right now that all the money I put into start-up costs came directly from my own pocket and not a small business loan.

 

[carillon]

Brian, thank you for bringing to light the serious issues that people can run into when they entertain the idea of starting their own home-based soap/candle business. It's just lucky that you found this stuff out in advance without having to face penalties for not following the rules.

I guess each township can vary with their requirements, but I wonder how many people are doing business under the radar and not playing by the rules the way you have tried to do.

It must seem like a real slap in the face and I don't blame you for being depressed, but what I've found is that it never hurts to escalate the issue to the next level. Too many people take no for an answer when they don't have to. You definitely need to take the matter to your town board and see if they will allow an exemption in your case.

I understand why they would want the restrictions, but if they can give you a break, you could become a valuable resource for the community by contributing a greater share of taxes that helps support the infrastructure, the town's fire and police, and hire local citizens who will also contribute to their tax base. Maybe that's the way to approach it--show how it will help the town in the future.

 

[surf girl]

Ditto carillon. I would put together a presentation for the council or whoever governs such things, regarding the maximum amount of lye and fat you will be dealing with, what precautions you will be taking, pollution issues, etc. And I would also point out that the town would be supporting a small business in these "tough economic times." In short, present why it is you think it is reasonable for you to have an exemption.

 

[Lindy]

I guess I'm just naive, it just never occurred to me that you can't make soap as a business anywhere you want as long as you carry the appropriate insurance.
:?
However back to topic - Brian I agree with everyone else that you need to not take no for an answer and go to Town Council or whatever governing body that can give you an exemption.

Cheers
Lindy

 

[I love soap!]

Ugh

Anything for a little more money

 

[carillon]

In my town, in order to be on the agenda you have to make a request in advance to bring your issue to the council. I think a presentation as Surf Girl suggested is exactly what you need to do.

Give all the council members a bar of your soap. Bring small jars of oils and lye, maybe even a mold to show them the tools of your trade.

Then explain how your small operation poses no more danger than every other house in the neighborhood that stores paints and varnishes, drain cleaner, fertilizer, gasoline for the lawnmower, motor oil, hair dye, hair spray, fingernail polish, bleach, ammonia, lighter fluid, propane, air fresheners, bug spray, etc., -- ALL things that probably 90% of all households have on hand that could produce noxious fumes, fire, or explosions if stored improperly or used incorrectly.

 

[MsBien]

Excellent advice, make a presentation to the group of people who can make it possible for you. Have all the tools and samples, and show them that you're a human being trying to make it on today's economy.

Good luck, this is really scary if you ask me. I hope that this kind of blanket control isn't going to be a trend. I appreciate the idea of keeping things safe, but this is excessive, IMHO.

Please keep us updated.

Stacie

 

[carillon]

I get a call yesterday from my local township official. The man says he was informed by the State Dept of Taxation that I'm a new small business owner and I have to be issued a registration or permit for my business before I can begin making sales. He wants to know how the soap is made, which I fully explained. I also made it clear that this would be a very small operation, and that I expected to bring in less than $500 sales per month. He went on to explain that the State and Township require that I be issued a permit to make soap by the Department of Fire and Hazardous Materials. I need this permit because of the process melting oil, and storing a hazardous chemical (lye).

I explained to him that I don't store more than 5 pounds of lye, and that very little quantities of hard oils are used in my formulations. Apparently, that doesn't matter. There's also a regulation in place that I would have to install a professional grade stove and exhaust fan - costing about $5000. And my setup would be subject to random inspection, and if I'm in violation of these requirements I would be fined $2000 per incident.

Everytime I read your post it makes me angry to think about it. A hundred years ago people weren't using commercial stoves and didn't have exhaust fans in their homes when they made soap, yet they survived and apparently didn't blow up the neighborhood in the process.

It is ludicrous for them to take an ancient process and over complicated it by incorporating excessive rules. Yes, you should have a fire extinguisher handy; yes, you should keep MSDS on file and you should be informed about proper disposal of containers or material, and that's about as far as they need to go. I think if you could show them that you are a responsible businessman/soapmaker they should cut you some slack on this one. It's not like you were asking for a permit to make meth. If you decide to go before the board and would like any help with a speech, please let me know.

 

[Tabitha]

A hundred years ago

100 years ago your neighbor was 1/2 mile aways. WE are sitting on top of each other now. I agree a small time production of soapmaking should be permitted in city limits, but our personal right end when they infringe upon our neighbor. The city has no idea (at this point) how much lye will be used/needed. Lines have to be drawn. I really do expect the city/town to give an excelption for a small scale soap biz with boundries on qty.

 

[carillon]

In some areas neighbors were a 1/2 mile away 100 years ago, but there were also row houses, which have been in existence for several hundred years actually.