Business Licenses and Permits:: Published by Corporation Service Company » Blog Archive

Thanks to the rise in popularity of the History Channel’s Pawn Stars, pawn shops and secondhand dealer stores are starting to gain a better reputation in the public eye. Some pawn shops like Pawn America, have grown into nationwide companies, and have shed the seedy reputation that is often associated with this type of business.

Despite the mainstreaming that has started for pawn shops and secondhand dealers, most states and municipalities have business licensing requirements in place to help protect the pawnbrokers and consumers, due to the nature of the business.

Pawnshops are often required to follow several laws to help the community and brokers themselves from unknowingly purchasing stolen items. Individuals selling items need to be identified by showing a government-issued form of identification, and the item itself is placed on hold. Furthermore, some jurisdictions require itemized lists of everything that has been purchased and sold.

Brokers also take a gamble lending out money to individuals looking to pawn an item. Typically these individuals will get a loan and place personal property up as collateral, but often times the property being offered as collateral has no sentimental value or is stolen in the first place.

It’s easy to see why pawn shops and secondhand dealers require a business license and a close eye from law enforcement. Corporation Service Company (CSC) can help identify what licenses and permits your business needs. Contact us at 800.927.9800 ext. 5077 or request a quote for a Business License Order.