Question
Tax/License Question For Business Idea?
I have a tax/license question regarding an idea that I am wanting to pursue. What I am wanting to do is, take items from people that they no longer want/need (furniture, electronics, toys, games, etc) and then market them on line. I would handle 100% of the transaction and then pay the client that gave me the item 90% of the sale price and keep the other 10%. My question is, is this considered a consignment type sale? And if so, do I need to get a tax license and a retail/wholesale license? Thank you in advance for all your time and answers! I hope you have a great day!
5 months ago - 2 answers
Best Answer
Chosen by Asker
Any incensing requirements would be a local issue. You would be subject to any sales tax on all of the sales price and would need what every your state requires to collect that. When it is all said and done you will not survive on 10% of the gross sales.
by Mathew
5 months ago
Asker's Rating: 
Other Answers
Good Luck in your endeavor; however.... you should be aware that eBay already has "been there and done that". There are many folks that perform the exact service you are talking about. They usually have some sort of location that a person can bring their garage-saleable items to. The business owner takes digital shots of the items and then lists them on the site. They take a "cut" of whatever it sells for. You might want to investigate this option with eBay first to get your feet wet. Then when you have the process down pat, you could branch out on your own. G'Luck... Mike Womack Zero Degrees Tax LLP Moore, OK
by MisterZero- 5 months ago