What to Do Before a Garage Sale

What to Do Before a Garage Sale

The summer months are the prime time for garage sales. As you prepare for a garage sale, you probably spend hours separating your items, figuring out what you really want to sell, and deciding on prices so that you can make money from your sales.

While you may be planning a simple one-time yard sale, there are other people who make a living selling items that they no longer want. If you’re considering escalating your yard sale business into something larger, you may need a California resale verification permit. Here’s what you need to know.

Preparing for a Garage Sale

Getting ready for a garage sale can be a lot of work. The first step is to gather the materials you need, including tables, price tags, and signs to advertise the garage sale. Aside from getting your items together and setting up, you also have to research your area to figure out what people may be interested in buying. You’ll also have to figure out when the best time is to host your garage sale, as well as how you should market it.

The Business Behind a Garage Sale

While a garage sale may not seem like anything out of the ordinary, the fact is that there are some underlying business-related factors that you’ll have to address when selling your unused items to include:

  • Sales taxes on items sold
  • Income taxes on profit
  • Local permits and licenses

The good news is that the cost of a garage sale permit is pretty cheap. With a permit, you’re legally covered to sell your items without worrying about a fine. Fines can cost hundreds of dollars and can easily wipe out a good chunk of your sale profits.

California Permit Requirements

In general, holding a garage sale in California doesn’t require a seller’s permit. However, if you have more than two garage sales in a 12-month period, you must have a seller’s permit. Frequent garage sales are classified as being in the business of selling goods, items, or merchandise.

Depending on the items you sell, you may find that you can make great profits when you hold garage sales. What started out as a simple garage sale can quickly morph into a business that can make you a good amount of money each month.

Permits can be obtained online. Once you have a garage sale permit, you must ensure that it is prominently displayed. Permits cost $17.00 and last three consecutive days. When hosting your garage sale, you must only sell property that belongs to you.

California Permit Requirements

Need a Garage Sale Permit? We Can Help!

If you want to host weekly garage sales, you’ll need to apply for a sales permit. While you can apply online or in person at the Board of Equalization, you can save yourself some time by applying through our website. At FastFilings, you can easily apply for a sales permit and other permits that you need to host a garage sale or turn your sales into a business.

To learn more about our services, contact us or visit our website.

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