In most states in the United States, you will need a business license from the state to sell your items at flea markets. Although some states require a business license, have it in mind that business licenses are more commonly found at the city level.
This will most often depend on your state and location. You have to understand that laws and regulations governing the sale of items at flea markets differ by state and county, therefore prospective flea market vendors are advised to consult their local council before taking any step.
However, in most states in the United States, you will need a business license from the state to sell your items at flea markets. Even if the flea market you intend to sell at is in a different state from where you live, the state might necessitate you to get a business license before you can sample your wares.
It is also important you look out for licenses and permits of the city and county where the market is located. This will ensure you don’t fall foul of the law. Aside from a business license, you may also be expected to get a resale certificate from your home state.
A resale certificate is a document that allows retailers to purchase goods for resale without having to pay local sales tax for those items. Also, if the state or city also collects sales tax, you will be expected to set up an account with the necessary revenue agencies to enable you to submit the taxes you have collected.
It is imperative to note that most of the licensing necessary to sell at flea markets are primarily for those who are vendors. If you plan to set up a table at a flea market once in a while to sell items from your basement or attic, then you may not have to worry about some of these requirements, especially business licenses and permits.
You are advised to visit the local council before you start selling at a flea market. In most counties, you may have to apply for a temporary sales permit even if you will only be selling once or twice. Also, note that flea markets have their own policies and requirements for vendors and you will be expected to comply with them too.
You will find that some flea markets are very specific with the types of items you are expected to sell. Some may also have protocols concerning the appearance of your table or booth, and the times you can be open for business. But just like with state and county rules, these requirements might be for full-time vendors.
Legal Requirements of Selling at Flea Markets
Just as it was noted above, many states and local governments mandate flea market vendors to acquire a permit to sell their goods. Most often, vendors are expected to apply for a state sales tax permit so that the state can receive the taxes they collect on the goods they sell. Note that different states have different regulations, but if you are looking to start selling at your local flea market, here are basic legal requirements to consider;
Table of Content
General Business License or Permit
In most states in the United States, you will need a business license from the state to sell your items at flea markets. Although some states require a business license, have it in mind that business licenses are more commonly found at the city level.
Sales Tax Permit or Business Tax Number
In most states, to sell products and items in your local flea market, you are expected to get a state sales tax permit (business tax number or tax ID number). Have it in mind that this permit creates an account number with the state’s Department of Revenue or a similarly named state taxing agency.
Business Name Registration
Although not considered a business license, have it in mind that if you use a name for a business, most states in the US will require that you register that name. The process of name registration tends to vary by state and the type of business entity you choose. Sole proprietorships and partnerships may need to register a business name (also referred to as a Doing Business As, DBA, fictitious name, or assumed name).
Resale Certificate
When sourcing the products or items you intend to sell at your local flea market, note that you can purchase those items tax-free. A resale certificate is a document that allows retailers to purchase goods for resale without having to pay local sales tax for those items.
Therefore, instead of paying the sales tax to their vendor, they charge the sales tax to the end-user of the product. A resale certificate allows a business to not pay sales tax for items being resold, but sales tax will still need to be paid for supplies or equipment.
Federal Employer Identification Number
In the United States, the Federal Employer Identification Number (also referred to as a FEIN, Employer Identification Number, EIN, or Federal Tax ID Number) is a unique nine-digit number that establishes a business with the Internal Revenue Service (IRS).
Ideally, businesses with employees or those that form as a partnership, Corporation, and in many cases an LLC will be expected to get an EIN, while sole proprietors and single-owner LLCs without employees can use the owner’s social security number.
Conclusion
It is advisable to carry out extensive research to understand the requirements of becoming a flea market vendor in your state and city. If you intend to sell items you have purchased from another source, such as a wholesaler or dealer, don’t forget to come with your invoices and proof of payment to the flea market.
The idea that flea markets serve as a haven for stolen goods has been gaining momentum, and law enforcement visits flea markets and asks random sellers for proof that they acquired their items legally.