Could anyone tell me Is there any special requirement to become a coin dealer such as some special professional license? or they just need to apply for a tax registration certificate( the business license) to become a coin dealer? Thanks for your response
You need one coin older than you are, an envelope, a Forever stamp, and a pencil. To call yourself a Coin Dealer, you are not required to sell the coin; in fact, many don't, and many more never will.
The biggest requirement to becoming a coin dealer, I believe, is great grading skills, knowledge of all coins you plan on selling, great book keeping skills, and have a large enough customer base to make a living. You should join professional organizations and get a business license also.
You gotta start somewhere. Start simple before you plunge in, you might not like coin dealing, it requires great attention to detail, which some CT-er's will never master.
Got to have an eye for detail, like Doug just said. Small details is all that is between a dollar coin and a hundred dollar coin.
Like any business a resale number (tax id)and if your locality requires a business license and waalaa your a dealer, now to be a successful dealer then what they said
You don;t have to make a living at it to be a coin dealer. But you do need to keep good records and show a profit two years out of five lest the IRS declare it to be a hobby and disallow all of your expense deductions. (and tax what you make at 28% capital gains rate instead of regular income rates.)
True. Furthermore, OP, when you attend a coin show, do you see a little sign at every table, "I am a Coin Dealer"?
There are professional associations for coin dealers, but they are generally ineffective, corrupt, or pointless. The ANA and PNG come most quickly to mind.
You may need a business license if your state or municipality requires one(i.e., Minnesota). Here where I am you have to go to the county clerk and file a DBA. If you have a physical brick and mortar then an occupancy permit may be required. If you need a CO (certificate of occupancy) then that will require inspections and further permits possibly including burglar alarm, fire alarm, signs, etc.. Most states have what they call a one stop shop for people wanting information on opening a business. Even the Small Business Administration(SBA) can help.
100x easier to sell on eBay. No bricks, no mortar, 1000x more eyeballs, no licenses, no travel, no financing, no overnights in Motel 6, plus, once you set your Start bid, you know precisely the minimum profit a certain item will generate. Coin shops and stamp stores are dead in the water, so be careful what you wish for. I haven't been in a stamp store for 10 years, although I attend local shows, mainly to see old friends.
It seems nobody has answered the guys question. No. There are no tests you have to take, there are no special qualifications you have to have. Anybody who wants to can become a coin dealer. All you have to do is follow the same basic rules you do for setting up any other business. There is however common sense. For if you do not have the requisite knowledge to be a coin dealer then you will quickly go broke and be a coin dealer no more.
A person who holds coins as inventory for sale to collectors or other dealers....is a coin dealer. No licenses required (in TX, anyway). No experience required. No common sense required. Sales tax license might be required (not in TX). Business license might be required (not in TX). DBA will be required if biz is conducted under a trade name.
