Resale license?

[justgod]

Hello I was wondering how many out there actually treat their reselling as a legitimate business. The reason I ask is this: Since I am purchasing LEGOs to resell (at some point!) and I charge sales tax on my purchases, shouldn't I be allowed to use my reseller's license to avoid paying the sales tax myself? Anyone ever tried this with LEGO directly?

[Talon]

(Assuming you are in the USA) If it is a hobby you can run it from home, not pay city business license or sales taxes (especially since you have already paid sales tax). If it is a business then it is subject to more regulations and cost but you can also write off more costs and carry forward losses. If it is your main source of income, it really is your business and you should try to get an seller agreement with Lego Distribution. But, I've heard the small sellers don't get much choice in product or very big discounts, so you may still choose to purchase at retail when the discounts are significant and resell. Maybe someone here has actual working knowledge?

[Ed Mack]

Hello

I was wondering how many out there actually treat their reselling as a legitimate business. The reason I ask is this: Since I am purchasing LEGOs to resell (at some point!) and I charge sales tax on my purchases, shouldn't I be allowed to use my reseller's license to avoid paying the sales tax myself? Anyone ever tried this with LEGO directly?

A reseller's license is a very tricky topic for buying LEGO sets. While there is a possibility that it would apply to selling LEGO sets, I don't know how the various states will look upon small scale buying of LEGO sets to resell later. They can say you are a collector of LEGO sets and have no intention of selling them later.

As for LEGO, they might offer wholesale discounts and tax free options to large companies, but they really don't cater to small Mom and Pop stores. I've heard rumors of very high initial purchases to get the ball rolling. Jack from Chowren Toys can help answer some of these questions. I see a lot of these Mom and Pop stores on the internet, but I'm wondering if most are just scams or BS. Most LEGO resellers are just doing it to make some side cash or further their collection. I really don't know of any 3rd party resellers that can live off the sales of LEGO bricks.

[StarCityBrickCompany]

A reseller's license is a very tricky topic for buying LEGO sets. While there is a possibility that it would apply to selling LEGO sets, I don't know how the various states will look upon small scale buying of LEGO sets to resell later. They can say you are a collector of LEGO sets and have no intention of selling them later.

As for LEGO, they might offer wholesale discounts and tax free options to large companies, but they really don't cater to small Mom and Pop stores. I've heard rumors of very high initial purchases to get the ball rolling. Jack from Chowren Toys can help answer some of these questions. I see a lot of these Mom and Pop stores on the internet, but I'm wondering if most are just scams or BS. Most LEGO resellers are just doing it to make some side cash or further their collection. I really don't know of any 3rd party resellers that can live off the sales of LEGO bricks.

I have contacted Lego regarding becoming an official reseller. Aside from the large initial purchase (I think 20k+), you need to show many years (3, if I recall correctly) of having the actual business (license, etc), it can not be at your home (non residential shipping address), & you are not allowed to ship internationaly.

Now, before people start to say this is wrong of LEGO to put up so many restrictions, try to remember that this is partly the reason for the absolute value of all LEGO sets - No one gets LEGO cheap.