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    2 Replies Latest reply on May 17, 2010 1:59 PM by amspcs

    Legal Question: Reselling Items bought at Retail

    snccigars Adventurer
      Is it legal for a business to buy items at a retail store and then turn around and re-sell it? Would taxes work the same as if you bought them at wholesale from a distributor or wholesaler?
        • Re: Legal Question: Reselling Items bought at Retail
          LUCKIEST Guide
          Legal Question: Reselling Items bought at Retail

          When you use the word "Legal" you need at talk to your lawyer.

          Are you talking Sales Tax?? or business taxes??
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          • Re: Legal Question: Reselling Items bought at Retail
            amspcs Ranger
            First, my disclaimer: I am NOT a lawyer, and therefore am not a source of legal advise. That's a subtle way of saying you SHOULD only give credence to answers to your question provided by a qualified lawyer, nobody else.

            That said: I can't imagine anything illegal about it. Silly perhaps, but probably not illegal. One of the keys to successfully selling anything is to be competitive with your competition pricewise as well as in other areas. You will probably have
            difficulty doing this buying retail instead of wholesale. If you've found a product you'd like to sell that somebody else sells retail, obvously THAT person has a wholeale source. Why not find that source and get wholesale prices yourself. That way,
            you can re-sell at competitive retail prices and still make some profit.

            As far as taxes go, you need to consult your local tax authorities. I think you'll discover something along these lines: If purchased for re-sale, then there is no sales tax liability IF you have the proper permits and documentation---vendors don't just take your word for it.