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- - Opening a coin store. (http://goldismoney.info/forums/showthread.php?t=265606)

Goald | 05-15-2008 02:00 PM
Opening a coin store. If you want to sell coins online, say through ebay, is it best to open a company to do so (if serious about it)- and if it is what are the advantages/ disadvantages? I guess even coin dealers are paying a huge amount of tax.. is APMEX really paying 28% on any profit every time a coin sells? I'm just contemplating how this might be done. I know you can add sales tax on ebay when shipping within the same State. If you sell a lot on ebay, it is not very private- and if you a lot in sales and $ value- what should you do to 'play the game' as best you can? Perhaps it varies state by state, and if so, where would specific info on CA be available (I have looked :0) Any insights would be so welcome. :bear_w00t:

Seleukus Nikator | 05-15-2008 02:11 PM
some guesses about tax aspects Quote:
Originally Posted by Goald (Post 1104703) I guess even coin dealers are paying a huge amount of tax.. is APMEX really paying 28% on any profit every time a coin sells? I'm just :
If you run a business then you will be paying ordinary income tax on the net income. That is true whether you run it as a sole proprietorship or and LLC or S Corp. APMEX may be big enough to be a C corporation and have separate entity taxation. Small businesses usually aim to have whats called "pass through" taxation of profits which allows for owners to pay at their individual income tax rates and not have double taxation at the corporate and individual levels. When you quote the 28% rate that is of course the long term capital gain rate for collectibles, which sucks. I suppose some items might be taxable in that way, but I would assume that generally they are accounting for inventory in such a way that its mostly just ordinary income not long term cap gain. I would welcome any peopel in the coin biz who can say more though, I am not a dealer or involved in the coin trade for profit. As for sales tax, its a whole other ball of wax depending on state law.

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