License to Sell Frags?

reeffirstaid · May 29, 2015

Maryland is the same way. In MD obtaining a license is a big deal, since you facility has to be state inspected, etc, etc. I would say, if you are selling frags here and there to fellow hobbyists, I wouldn't worry about it. If you intend to invite people to your fish room to purchase frags, or operate a "store" I would seek to obtain the license. In some states, the penalties for doing business without the appropriate license are severe.

thejuggernaut · May 29, 2015

It is all shades of gray. Take ebay for example. If I go get some junk out of my garage and go sell it for profit, do I need to collect sales tax and file it on my income tax...I would say 99% of people don't. What about the 14 year old neighbor kid who mows my grass. He probably makes 1000 a year. Should he? I know he doesn't. Neither did we when we mowed our neighbors grass as kids. I would say if you are selling a few a month to locals to feed your habit, then I wouldn't worry, but if you are making money on the deal, then you should probably start looking into it.

Daytonareefing · May 29, 2015

Tagging along

moulton712 · May 29, 2015

Wow. Following.

Pat Clark · May 30, 2015

I live in Florida and you pretty much need a license for everything. Some county's are more aggressive about it then others. We don't have state income taxes so sales taxes are the only source of income for the state and they can get a little touchy about people not paying sales taxes.

DaveMorris · May 31, 2015

Reading this thread was making me think of this referring to California. In this state you need a license for literally everything. Any chance the state can get to charge a "fee", a tax or whatever else they wanna call it. They have even been sending folks from the State Board of Equalization to shows like RAP, MAX, and other larger frag swaps to go around and check on anybody that is selling stuff. They have to have whats called a "BEAN number". It is all about collecting sales tax. I haven't heard anything here yet about an aquaculture license though. I'm sure some bozo in Sacramento is working on that one as I type this.

Reefhunter007 · May 31, 2015

I went and got my license after hearing threats from a LFS" just because they heard I was selling frags !! And basically it's really a shame that they would even stoop to the level of calling in the cops cause I sold a couple of frags cheaper than what they make you take out a second mortgage for" it's totally crazy I guess if I sell a couple of comic's or sell a couple of ps4 games I hve to report it!!!! It's ridiculous!!!!

jasonandsarah · Jul 22, 2015

Bring this thread back? This is crazy and as I read through it I feel like this is something a few states came up with on a whim and they need to fine tune it a little. Selling. Less then let's say $1,000 a year in frags (only ones grown in your tank, no chop shops) shouldn't require a lisence at all I mean it doesn't even make sence. What do they expect people with reef tanks to do? Just allow everything to grow into each other and fight it out? Or should everyone that paid thousands of dollars for the corals in their tank just give them away for free?

booth2010 · Jul 22, 2015

Well I think it depends. If you are just selling what overgrows your tank then I would not worry too much about the state license. Now if your going to be selling so much you give yourself a name or have a sellers account on a site such as this then I would say yes you should because that means you are constantly selling and it is no longer just "hey I have extra" its "im growing these so well I can make tons of money". Either way if you are selling things from home and its more than just a one time thing in the eyes of the local government (city/county) you should have a business tax receipt (business license), in FL anyways I do not know about how other states work. Those are cheap, one frag could pay for it, and have no virtually requirement.

WesF · Jul 22, 2015

joshporksandwic said:
If you are selling to anyone in any state you need to pay taxes and to pay taxes you need a tax id or to open a company. In fl you also need an aquaculture licence so they get the opportunity to go to your house once or twice a year to make sure your setup is adequate and that you're not disposing of saltwater anywhere not approved. There's the link with some useful info

http://www.freshfromflorida.com/Div...ry/Aquafarm-Program/Aquaculture-Certification

I pay taxes on my frag sales and do not have a tax ID. My CPA files the taxes for me. I am pretty sure it's filed as a hobby, not as a business.

I send him a spreadsheet of all my hobby expenses and coral sales and he does the rest. Pulling PayPal and credit card history for the year make it pretty easy to keep track. He hasn't mentioned anything about a need for licensing or tax id as of yet.

lxeroxl · Jul 22, 2015

In Florida fwc has been know to come after people selling on Craigslist.

Daytonareefing · Jul 22, 2015

I havn't heard that but its good to know.

doylef4i · Jul 22, 2015

I actually got a written warning from the FWC. They have made multiple sweeps in our area more as a warning. The gentlemen I dealt with said a lot of this started as a result of invasive species. They also check to make sure your not grabbing stuff from local waters. They said the state at this point wants people in the hobby to have a saltwater product license. The license cost about $50 a year. I was selling accidental broken frags on craigslist.

booth2010 · Jul 22, 2015

doylef4i said:
I actually got a written warning from the FWC. They have made multiple sweeps in our area more as a warning. The gentlemen I dealt with said a lot of this started as a result of invasive species. They also check to make sure your not grabbing stuff from local waters. They said the state at this point wants people in the hobby to have a saltwater product license. The license cost about $50 a year. I was selling accidental broken frags on craigslist.

Wow I havent heard of that, what part of FL are you in?

joshporksandwich · Jul 22, 2015

WesF said:
I pay taxes on my frag sales and do not have a tax ID. My CPA files the taxes for me. I am pretty sure it's filed as a hobby, not as a business.

I send him a spreadsheet of all my hobby expenses and coral sales and he does the rest. Pulling PayPal and credit card history for the year make it pretty easy to keep track. He hasn't mentioned anything about a need for licensing or tax id as of yet.

Wait till you upset a local store lol. If you have an aquaculture license in FL you don't need a business but you need to file taxes the same way you're doing it.

tkchockeyman · Jul 22, 2015

Anybody know the law for Connecticut...or have a link where I can find such information?

klp · Jul 22, 2015

2 things you and many others may run into with the tax issue:
1. The government has an insatiable appetite for money and will tax whenever they can. No choice but to go along. Check your state and local tax codes so you do not have them down your neck.
2. Environmentalists are trying to close down all saltwater coral sales even if tank raised.
You never know which or both are behind these moves to tax and regulate. Once you have a tax license they know who you are when they decide to pull the trigger. Not a win win for the hobbyist.

ZoaCollector · Jul 22, 2015

On that note, doesn't that qualify everyone who sells a "business".

Which is interesting on how sponsorships are handled.

If you grow it, and sell it, doesn't that technically make you a farming or aqua culturing business?

I pay to be a sponsor here, which i don't mind because i love this site, however it raises the question: Should everyone who sells here be considered a "sponsor" and have to pay a fee?

Maybe if everyone did that, they could lower the overall sponsorship costs.
Food for thought...

kschweer · Jul 22, 2015

I would be interested to see if more states start doing this. What does this license "entitle" you to do, is it just sell a few frags from their personal collection here and there or does this allow people with a license to shop at a wholesale level? I would be curious to see if wholesalers start requiring business licenses as well as the license this thread is about to be able to shop there.

If this does help stop invasive species such as lion fish which we all know is a big problem, and stops people from illegally collecting I am all for it. I would like to know from anyone with experience how strict wildlife officers are and if they are actually enforcing this.