Question, How do I start a PM dealership. what do I need from the feds or the state. is it just a business license?
Thank you for your help.
I've looked into this and it varies from state to state. Most certainly you'll need business licenses, a sales tax ID number, a federal tax ID, and I highly recommend forming a LLC or corporation to lessen the chance of a lawsuit claiming all of your current and future wealth.
My state and many others require a bullion/metals dealers license. You can usually find out the requirements on state revenue/taxation websites. Some of the requirements are really geared toward buying gold and silver products in order to send it on to a bulk purchaser (i.e., refiner or refiner's agent). Don't forget local regulations as well - a lot of towns are seeing all of these "we buy gold" signs in shop windows these days, and are enforcing regulations without mercy. My occupancy license paperwork - administered by local county authorities - specifically asked if I was in the business of buying/selling metals.
Investigate the costs carefully. I found that since my main interest was in buying bullion coins as well as 90% ungraded silver coins, that I could do better by simply buying low and selling high as a private individual. I've since started a business where I sell a decent volume of used and new-old inventory goods including 90% silver coins, but I just do everything under my retail sales permits.
The startup costs for many businesses are pretty high, and don't be surprised to see competitors looking for chinks in your armor to report you to tax and code enforcement authorities once you are up and running. It's best to keep everything above board and legit.