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Home-based Business
- Do I need a business licence to have a garage sale if I make a lot of money? I buy things at deep discount on clearance or with coupons, and then re-sell them in a garage sale.
Janet McCausland
Home-based BusinessEach locality differs in its approach to garage sales. Some require a permit or license; others do not, as long as you stay within the maximum number permitted each year. It would be worth speaking to the local town clerk or a business attorney to see if there are any issues concerning the amount of money earned and if there's a tipping point that requires more substantial registration. Your reselling of merchandise also raises some concerns--it's unlikely that the merchants would want to give resellers deep discounts on their merchandise; they'd rather give that to the end-user customers as a means to build a loyal customer base. Also- the typical all-cash/no receipt/no sales tax transactions at garage sales could also run you afoul of the taxing authorities, as you really are treating this like a business. Speak to an accountant to make sure your bases are covered.
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About Janet McCausland
Janet McCausland, Co-Director (Ottawa) of Entrepreneurial Moms International, a growing global family of networking communities built by local moms who are running their own businesses or plan to embark on their own venture.
