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Sports Card BusinessHow to Start a Sports Card Business: LLC Setup
Starting a sports card business? Panini's application to buy cards direct says, in capital letters, you must have a storefront. Why an LLC matters for cards, the one piece of paper that lets you buy without paying sales tax, and the key Bizee screens, start to finish.
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Why an LLC for this business
The name on the paperwork
Panini wants your signs to match the name on the application
Hobby or business
The IRS asks if you keep complete and accurate books and records
The resale certificate
Buy cards for resale without sales tax; it carries your name
How to start it, in order
- Start small and keep records. The IRS asks if you run it in a businesslike way, with accurate books, and says all income is taxable.
- Form your LLC, get its EIN if you need one, and open a bank account in the LLC's name.
- Register with your state tax agency for a seller's permit (free in California), then give suppliers a resale certificate.
- Price with the fees inside: eBay takes 13.25% on sports cards up to $7,500, Fanatics Collect 6% (12% at 120% of Card Ladder value), as of Nov.
- Panini direct accounts need a storefront open 6+ months, 40+ hours a week, sports cards at 70% of sales, so plan other sources first.
- Get quotes for dealer insurance, and ask your agent what your homeowners policy covers for card stock.
Every fact in this guide was checked against a primary source before the video was made.
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