Starting a compliant peptide company takes 4–6 weeks: form an LLC, secure a high-risk merchant account, draft research-use disclaimers reviewed by counsel, vet suppliers with COAs, and stand up chargeback alerts before the first sale. Skipping any step typically results in a frozen account inside 90 days.
Step 1 — Form the legal entity
File an LLC or C-corp in a state with low franchise tax (Wyoming, Delaware, or your home state). Apply for an EIN the same day. Open a dedicated business checking account in the entity's name — payment processors will not approve commingled personal accounts.
Step 2 — Draft compliant product positioning
Every product page must read as research material, not consumer therapy:
- "For research use only. Not for human consumption."
- No dosage instructions, half-life claims, or before/after images
- No mention of weight loss, muscle gain, anti-aging, or therapeutic outcomes
- Terms of service and refund policy linked from the footer of every page
- Age-gate verifying buyer is 21+ and identifies as a researcher
Get the language reviewed by an attorney experienced with FDA Title 21 — this is the single highest-leverage hour of legal spend in the entire launch.
Step 3 — Vet suppliers and get COAs
Source from labs that issue Certificates of Analysis (COA) per batch, ideally with HPLC and mass-spec data. Keep the COAs uploaded to a customer-facing page — payment processors review them during underwriting and chargeback investigators reference them during disputes.
Step 4 — Set up the storefront
Shopify works for the storefront, but you cannot use Shopify Payments — it routes through Stripe. Use Shopify with a third-party gateway (NMI, Authorize.net) connected to a high-risk merchant account. WooCommerce on WordPress is also fine and gives more compliance control.
Step 5 — Apply for a peptide merchant account
This is the gating step. Apply 4–6 weeks before launch. See the peptide merchant account guide for the full document checklist. Without a high-risk MID you have no way to accept cards.
Step 6 — Stand up chargeback infrastructure
Before the first sale:
- Activate Ethoca and Verifi alerts (your processor includes these on a chargeback-defense plan)
- Use a clearly recognisable billing descriptor (your brand name + phone number)
- Set up shipping with tracking and signature confirmation on every order over $200
- Document a refund and dispute policy that responds within 24 hours
Step 7 — Configure tax and shipping
Most states require sales tax registration. Use a tax automation service — peptide SKUs do not always map to standard supplement codes. Shipping should require adult signature for orders shipping to residential addresses to reduce friendly-fraud chargebacks.
Step 8 — Launch quietly and monitor week 1
Open with paid social or affiliate traffic only — not a press release. Watch for:
- Approval rate above 90% (lower means card issuers flagging your descriptor)
- Chargeback ratio below 0.5% in the first 30 days
- Refund rate below 5%
- Average order value matches what you told underwriting
Realistic launch budget
| Line item | Cost |
|---|---|
| LLC + EIN | $300–$800 |
| Attorney review of disclaimers + ToS | $1,500–$3,000 |
| Storefront (Shopify + theme + apps) | $500 first month |
| Inventory (initial) | $5,000–$25,000 |
| Merchant account setup | $0 (no setup fee at most specialists) |
| Rolling reserve held for 180 days | 5–10% of processing |
| First-month marketing | $5,000–$20,000 |
Frequently asked questions
Do I need an FDA registration to sell peptides?
No. Research peptides are not FDA-approved drugs and do not require facility registration. You do need clear research-use labelling and you cannot make therapeutic claims.
Can I sell peptides as a sole proprietor?
Technically yes, but no payment processor will underwrite a sole prop in this category. Form an LLC first.
How much capital do I need to launch?
Most launches run $25,000–$60,000 covering inventory, legal, marketing, and the rolling reserve held back during the first 180 days.
How long until the merchant account is profitable?
Cash flow positive on processing happens immediately. The rolling reserve takes 6 months to fully cycle, so plan working capital accordingly.
Once you are processing, read the chargeback defense playbook and peptide compliance guide to stay there.
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