Are There Consequences for Advertising Your Business Without a License?

Depending on the state, there can be. Consider this recent article by the CATO institute:

"Under Ohio law, it isn’t illegal to buy gold, it isn’t illegal to sell gold, and it isn’t illegal to talk about buying and selling gold. But—and it’s a significant “but”—if you talk about buying gold, you’re not allowed to actually buy any. At least not without a license.

That’s right: in Ohio, it’s illegal for anyone who advertises a willingness to buy gold to do so without a license. Obtaining and maintaining that license isn’t easy, or cheap. Licenses must be renewed every year, and license holders have to make daily reports to the police detailing their purchases. This law creates a two-tiered system: dealers who have complied with the onerous licensing regime may freely advertise their businesses, while others can’t so much as put up a sign reading “We Buy Gold” without facing criminal prosecution and fines of up to $10,000 per transaction."

Second hand dealer licenses can be complex and understanding them and ensuring you are properly licensed may seem daunting. Download our free white paper, Why are Second Hand Dealer Licenses Such a Big Deal, that specifically focuses on second-hand dealer licenses and the intricacies of acquiring them.