I run a tiny vintage shop through my LLC and I keep getting offered whole collections from estate sellers and pickers. Can the LLC just cut them a check directly, or do I need to do something else? I want to keep it legit but also not overcomplicate a $300 deal.
Vintage Sourcing
Can my LLC buy vintage clothing collections directly from sellers?
LLC can buy inventory. That's like the main thing an LLC does. Just make sure the check or payment comes from the LLC account, not your personal one.
What thrift said. Also for $300 deals nobody cares, but if you're doing collections regularly get a simple purchase receipt with seller name, date, items, and amount. Keeps your bookkeeping clean.
Is the LLC actually buying from an individual or are you personally handing them cash and then moving the clothes into the shop? Big difference. If the LLC is the buyer, the LLC pays and the receipt is in the LLC's name. If you pay personally you can still contribute/reimburse but it's messier.
Yeah I've been paying cash from my personal wallet and then just putting stuff on the rack. Sounds like I should stop doing that.
lool the vintage hustle is 90% vibes and 10% receipts
Also don't forget sales tax resale certificate if your state has one. Buying for resale is usually exempt but you need the paperwork if you're buying from a business. From random individuals it's usually a non-issue but check your state.
One thing nobody mentioned: if a seller is offloading a whole collection,get them to sign a basic bill of sale that says they have the right to sell it and it's free of liens. Vintage collections can get weird with estate disputes.
That's a good point about estate disputes. I hadn't thought about that at all. The last batch I bought was from a guy whose aunt died and his cousin was apparently pissed about it.
Then yeah, paper traill. Honestly for small stuff a handwritten receipt with signatures is fine. Don't need a lawyer for every $300 lot.