Can an LLC operate a luxury streetwear consignment business?

LLC is fine for consignment. Just make sure yor consignment agreement clearly states who owns the goods until sale, and who bears loss if stolen. That's the big liability trap.

Why not just do a sole prop? LLC fees add up. Unless you're planning to hold inventory or have employees, maybe overkill.

I ran a consignment shop for 3 years. LLC saved my ass when a 'friend' consigned fake Off-White and a buyer tried to sue. Definitely worth it tbh.

Consignment = youre holding other people's stuff. If someone claims you sold their item and pocketed the cash, you want that liability shield. LLC.

lol just don't mix persnal and business funds. That's the real killer.

Sure, an LLC can operate it. But can YOU operate it without losing your mind dealing with hypebeasts who want 90% of resale? Good luck.

Tax-wise, consignment inventory isn't yours, so you don't pay sales tax on the full amount. But you need to track consignor payouts meticulously. LLC doesn't change that, but it does keep your personal assets safe if a consignor claims you lost their grail.

Thanks all. I'm leaning LLC. Any specific consignment agreement templates or resources you'd recommend?

Don't use a template. Pay a lawyer. Seriously, one bad clause and you're on the hook for counterfeit goods.

Also check local zoning. Some cities classify consignment as secondhand dealer and require a license. LLC won't help with that.