How to apply for coin dealer?

You can apply for a Business License online in most Counties and Municipalities of your Business State.

The license will require you to state what your business is, what your business address is, and how much sales you anticipate for a year and the amount of sales taxes you expect to collect.

After that you will be required to make quarterly tax payments to the state taxing authority.

An actual "shop" is not required. Only a Business Mailing address which could very well be a Post Office box in a strip mall.

Do a Google Search on Business License for your State of residence.

 

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No, no huge benefit. It's easier to say:

Guy to girl at bar: "I'm a coin dealer!"
Girl: "Oooh!"

Another guy to girl at bar: "I'm an individual buying and selling coins."
Girl: "Hit the road, Jack!"

 

A warning about private postbox companies. "Some" will not forward mail if and when you close your account; they mark it "Account Closed, Return to Sender." Stick to USPS.

 

By "dealer" I assume you mean a legal business entity and not what the individual actually does. Now with that said, and without getting into any of the more, ahem, "questionable" (depending on your viewpoint) aspects of transactions in certain locations, there can be many. For starters, not paying sales tax on purchases made for resale, and since the OP is from NY, this may be important to him.

 

However, there are reasons that vest-pocket "dealers" outnumber traditional dealers by 100 to 1 (a guess), such as record-keeping, sales tax, governmental scrutiny, liability, compliance, and endless expenses. It's as much a matter of conscience as anything else.

Some of the big coin (and stamp) folks on eBay pay their taxes, but sidestep everything else, including all the ding-dong requirements of the local authorities.

 

I've looked at several different things and I can't really see any added benefit unless maybe they get a discount from 3rd party grading services and send a lot of coins in to be graded. That was my next idea... as an individual is it as expensive as I think to send coins in to be graded and is it really worth it?

 

This is a little incorrect. The problem is that the USPS will not accept Change of Addresses from a private mailbox. At the same time, private mailbox companies are required to forward your mail to you for a period of 6 months as long as you pay them for this service.

 

The lines are blurred more than you may realize.

 

"as long as you pay them for this service..." This is the KEY, could add up to big bucks, which you have no control over. And if you happen to get a registered package, bet they don't re-register it, plus you are essentially relying on unskilled and unbonded labor.

In any case, thanks for the clarification, I wouldn't TOUCH a private box company, period.

And BooksB4, yes, the lines are blurred; it's nice to say you're a licensed business, but for many, unnecessary in the Internet age. It invites scrutiny, added expenses, and endless record-keeping. But you can go too far as a vest-pocket dealer, of course. I am very much on the downhill side of coin collecting, having sold most at Stack's, so I don't worry about it. Everything I have left to sell probably doesn't add up $1,000 total. And I don't plan to sell bullion at all.

 

While I suppose it could matter to some, my post and point had nothing to do with it being "nice to say you're a licensed business".

 

If you advertise in the newspaper (or even CraigsList) to buy, and there's little more than a telephone number, I think it reassures sellers to tell them, "I am licensed by the City of Columbus, license number #, expires June 30, 2015," or whatever. They feel they have recourse in the event of a problem. Think how many buyers can't say that...

After I got out of the Army, I spent $10 for a City "veteran's license," complete with picture, to post prominently at the flea market, and I feel sure it generated additional sales (1970s). I think it's more important now than it was then.

 

My apologies, Doug, but I am no longer sure if you're responding to me or just in general. If the former, I do not disagree with anything you've since said, but it seems we're talking about two different things. My only point earlier was that just because one may possess a business license, this does not automatically move them 100% into that category, forcing them to leave the so-called benefits of being what you refer to as a VP behind, especially in a state such as NY.

 

I'll defer, since I've never had a business license. This is my last post on this subject, as it caused great ill will among other members, and in the end, accomplished nothing; yes, I was speaking in generalities, all you can do with such a vague question.

 

Regarding the requirements for becoming a coin dealer, I would be more concerned about the tax implications and setting up a business. You would have to check with your hometown regulations if operating a home based business and then state regulations.

 

Regarding "operating a home-based business," I believe most municipalities will not care, as long as it's not the type of business where you have clients in your home office on a regular basis. Since an eBay store doesn't attract traffic of that sort, it should generally be okay.

You do have to be careful of the tax man, though. Home office deductions are scrutinized pretty thoroughly, and you need to be careful you don't run afoul of the business vs hobby distinction.

If you're making any significant income or losses off coins, you need to get real tax advice from real tax advisors and not bozos like me on the internet.

 

Thanks all of you! Your information are really helpful! I really appreciate !

 

If a person selling coins online and have a tax registration certificate( the business license) , is called a coin dealer? Is there any other requirement to become a coin dealer such as some special professional license?