Part 1: Gather Information
One of the critical factors that need to be considered when setting up a 3D plant includes the type of 3D material to be used, the location of the warehouse, and the availability of parts. The factors mentioned above enable a business person to ask three crucial questions.
The first question is, what type of material will be used in producing 3D products?
Numerous 3D materials are used in the process of 3D printing. Hence the type of material will determine the types of 3D printers to be manufactured. A 3D printing material is one of essential items to have on hand before you begin 3D printing an object. It is dependent on the sort of 3D printing technique that your 3D printer uses to create an item. The filament is the 3D printing material one needs if your printer uses FDM 3D printing technology. It is essential to assess if the 3D printers are based on the SLA 3D printing technique. As a result, one should list 3D printing material suppliers based on the printer they want to utilize in your start-up. Many firms, both online and offline, provide 3D printing supplies. While searching, one will observe that there are a lot of 3D printer manufacturers in this field. As a result, it is suitable to purchase from a firm specializing in 3D printing materials. Even if the former is more expensive than the latter, it would be sufficient to compare. Therefore, the first step will involve examining and assessing the type of 3D materials she wants to manufacture.
The second question is, where will be manufacturing warehouse be located or positioned?
Secondly, choosing the location where to set up the manufacturing plant is critical. The choice of location is crucial because it determines the kind of incentive the business will have from the taxation perspective. More so, the choice of the warehouse can impact the growth of the business.
Thirdly, where or how to maintain and acquire 3D spare parts?
The 3D manufacturing business is a relatively new concept in the contemporary business world. From a broad perspective, this means the business is exposed to various challenges. The most common problem facing many 3D manufacturing firms is the replacement and availability of parts (in the production line). Essentially, to ensure a successful and productive business, one should maintain spare parts such as the print bed, the print head, and belts on hand. The components will be included in the 3D printer used in the manufacturing process when producing other 3D items. Such parts are consistent in many of the equipment used in 3D production and manufacturing companies. Additionally, if the printer is an FDM 3D printer, you need to have a working understanding of the extruder and nozzle system. And the expertise required varies according to the sort of 3D printing technology used by the printer.
Part 2: Outline the Possible Options
The first business type is opening a 3D printing manufacturing company. This type of business involves the production of items that are printed for “fast and easy” consumption. 3D printing is a relatively new business concept in modern society. Nevertheless, numerous advantages and disadvantages are associated with opening and running a 3D printing manufacturing company.
Pros
3D printing manufacturing companies do not have significant competition as a new business model. This is because it requires specific technical expertise to open and operate a 3D company. Thus, many people do not have such skills. Coherently, 3D printing manufacturing companies have a wide variety of specializations, which one can choose from. Since everything can be printed, a company can cater to the need of a large consumer base because printing is not restricted to conventional manufacturing processes. There is a limitation with 3D printing. Ideally, 3D printing is still a new business. Thus there is still a lack of market because many people are unable of the printable products.
The second type of business is retailing ice cream. It is considered to be among the “common” or traditional businesses. However, if properly managed, cream venting businesses can be profitable to the owner. First, the business requires minimal paperwork and licence to operate. An ice cream shop does not have complexity; thus, the owner can claim the business income on their return, reducing taxations.
Furthermore, an ice cream business provides substantial cash flow for the business. Due to constant interaction with customers, the business is able to have the circulation of money. In contrast, one of the challenges that face scream business relates to the fact that the demand for increase shifts from one season to another. During summer, ice cream companies make higher profits than during winter.
Part 3: Share Your Recommendation
The superior option is starting a 3D manufacturing firm as a limited liability company (LLC). The LLCs will provide the owner with numerous tax benefits that supersede other forms of business. Essentially, starting a 3D manufacturing company as a limited liability company, by default, the company will be treated as a partnership or sole proprietorship. This is because Limited Liability Companies are taxed as pass-through entities. Thus, indicating that the taxes of the 3D manufacturing company will “pass through” the individual tax return bracket of the owner, which means that the owner will not be required to pay additional taxes for the new business. The net income of the 3D manufacturing company will be subject to self-employment tax, and income comes depending on the text bracket of the owner.
Furthermore, by starting an LLC 3D manufacturing company, the owner can benefit from the S corp tax. This option will enable the owner to lower her employment rates, which directly reduces the company’s tax payable to the tax authority. Essentially, the S corp tax recognizes the business owner as the firm’s employee. This means that the owner can have a lower tax bracket (suitable for an employee), further lowering the taxation bracket. Business tax experts estimate that if the owner of the 3D manufacturing business can pay themselves a minimum of ten thousand dollars each year, they can qualify for S corp exceptions.
Moreover, it is essential to note that the LLC may or may not be taxed together with personal taxes. This is based on the type of structure adopted for the LLC when establishing the 3D manufacturing company. There are four core structures: single-member limited liability company, multi-member limited liability company, and limited liability company with S corp. Overall, the LLC will enable the investor to establish the 3D company with minimal challenges while reducing the amount of tax to be paid in the long run.
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