Regarding your new business selling second hands goods: I am not a tax lawyer or expert but I believe that as long as you are selling retail (and not wholesale) then you will need to collect tax. The test is: Is someone collecting tax on that good? If not you, who? Wholesalers can avoid the tax because the tax will be collected at retail.

Say, for example, I had a Phoenix business - a store selling new and used lawnmowers. Would I have to collect sales tax on the sale of a used lawnmower or lawn tractor? Probably Yes.

In any case, when in doubt apply for the state and city license. It is relatively easy to do and they can answer your questions. If you do not need to file a monthly report then just don't, but it would be odd to have a business without the license on the wall.

This firm has a person whose job it is to answer tax questions and get your licenses, if needed. The fee is included in the charge for getting the licenses(s). As you might imagine the rules change buy city, so can be confusing.

After you get started you will need help (more than you know) in building your "legal brick house." This can be done at relatively low cost and has huge benefits. "Business law for business owners." is what we do.

Good luck in your new business! Many of our clients are business start-ups.

Law Offices of Donald W. Hudspeth, P.C.

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Phoenix, Arizona 85012

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