Q&A: cash4gold business question?
Question by katrina t: cash4gold business question?
Note: My business name will not be CASH4GOLD, because that name already exists. I am preparing to open a business that I will be operating from my home within the next 3 months. I am only starting out locally, within my city and some of the larger surrounding cities. My business involves buying unwanted gold or gold jewelry from people. I will not be pawning any of the items that I receive, it will be strictly buying. Do I still need to obtain a pawn-brokers license? Or are there any special licenses that I have to have? I am going to advertise on billboards around town, with business cards and word of mouth. What legal forms or contracts would I need to get from a local business attorney to include in my postage paid envelopes that I send people to ship there items to me in? I obviously I know what the going rate for 1 ounce of gold is, but in order to make any profit off of the items that I receive I need to pay the people alot less than the going rate. Sort of like what a pawn shop would pay. In oder to alleviate any dis-agreements to what the person receives from me in cash, I am going to keep their items for 30 days-labeled, so that if they want to dispute the amount or try to take me to court, I can simply ship their gold item back to them, after they refund me the money I sent them. If they exceed the 30 days, they are agreeing to keep the money and I become the new owner of their gold item.
Best answer:
Answer by lynnbodoni
You need to consult a lawyer with these questions, because you will have to operate under local, state, and federal law.
You will have to get the local police to send you the hot sheet…the list of stuff stolen recently. You’ll be mostly interested in the jewelry and coins section.
What do you think? Answer below!