Before the doors open: your resale business and its paperwork

Q: What do I need to get a resale business up and running legally?

A: Hi Aurora, this is the list that goes with a resale business. Nothing here is a guess: it is the paperwork a business like yours commonly meets, and we sort out which pieces are yours.

1. Business license: A business license for a resale business MAY ask whether you sell new or used items, where you source them, if you sell online or in person and how stock is stored.
2. Home occupation permit: A home occupation permit MAY apply when finds and shipping boxes crowd your garage or spare room, typically with limits on visitors, stock storage, deliveries and pickup traffic.
3. Sales tax permit: A sales tax permit MAY be needed because each flip is a taxable sale, and a resale certificate matters whenever you buy from wholesalers or liquidation lots.
4. Secondhand dealer record: Resellers of used goods such as electronics or jewelry may be required to keep a log of purchases and sellers.
5. Purchase log: A written record of what you bought, from whom and on what date may be requested for used goods.
6. Storage space statement: A signed statement explaining where inventory sits and how it is kept dry may be asked for.
7. Employer registration: A team means MORE forms: an employer ID, payroll registration and proof of workers' compensation coverage may be asked for.
8. Company papers: Depending on how you want to own and name the business, an LLC, a DBA or a tax ID number may come next; we prepare those too.

Why it is worth the paperwork

Resale is a treasure hunt with a paycheck, the dusty smell of a thrift bin, the click of a lucky find and the joy of a profit on something forgotten.

Opening day, imagined

Picture Beatrix hauling a lamp she rescued for a few coins into the glow of her spare room, where Tin Teacup Finds was about to open.

A cautionary example

A resold electric heater overheats in a buyer's apartment and causes a fire, and without an LLC the claim could reach your house.

Codes and counts

Business code (NAICS): 453310 (Used Merchandise Stores), 459510 under the 2022 update. This page lists 8 paperwork items for a resale business, and each one is marked as something you MAY need, since we confirm which apply.

Tip: Keep each receipt with its item until it sells, so your profit figure is real and not a guess.

A reseller's favorite sentence is 'I swear it will sell next week.'

Ready when you are: start your order and we will find out what applies to your resale business, fill out the applications and keep the paperwork moving.