Money making venture...legal?

[GMCgrizzFI]

I've been thinking about getting into a little money making thing on the side. Just got married and buying a house in the next year or so, so I'm needing to save heavy for that. I bought my bike in Brookhaven, MS for ALOT less than I would've paid here in Lake Charles, LA, plus I didnt have to pay any taxes. Anyway, I was thinking about doing that on the side, and going to Mississippi and buying leftover '08s and cheap '09s and coming back here and selling them for a little less than they would sell at a dealership around here. I figure it's a win-win for everybody, I make a good profit, and whoever buys a bike from me gets an awesome deal without driving a long way to Mississippi. So anyways, what do you think? Is it a good idea? I estimate just going over there about once a month and getting somethin I know I can sell quick and come back and sell it. Nothing crazy, just a little extra pocket change. Anyways, I'll stop babbling and y'all tell me what you think. Thanks.

[armatt06]

If you have the money and resources to purchase several atvs, then do it. I would get a large trailer and buy several at a time to save on travel expenses(if you can afford to do so). People may think its a little shady to buy from you, but just make sure you can take care of the paperwork from them.

[GMCgrizzFI]

Well the beauty of the paperwork is all I have to do is sign the title. An example of some deals I can do are at a dealer in MS right now they have an '08 Honda TRX700XX MSRP of $7900 selling for $4300-I could come back and sell it for atleast $6000. Another deal is they have '09 Recons MSRP of $3900 selling for $2579. I could probably get into Yamahas too, but Honda are way to popular around here to not sell.

[armatt06]

I say go for it.

[JHFWIC]

I would say they are going to nail you for not being a dealer. but I could be wrong!

[Mad Mike]

If you put them in your name and then sell them when the person you sell them to go`s to transfer the title will have to pay the tax.(you might get nailed for taxes you didn`t pay) here in Michigan if you buy and sell more than 5 vehicles a year you have to get a dealers license. I would check with your local laws incase you get caught you will know what the out come will be.(how much you will to pay in fines and such)

[AZ08Grizz]

Originally Posted by GMCgrizzFI

I've been thinking about getting into a little money making thing on the side. Just got married and buying a house in the next year or so, so I'm needing to save heavy for that. I bought my bike in Brookhaven, MS for ALOT less than I would've paid here in Lake Charles, LA, plus I didnt have to pay any taxes. Anyway, I was thinking about doing that on the side, and going to Mississippi and buying leftover '08s and cheap '09s and coming back here and selling them for a little less than they would sell at a dealership around here. I figure it's a win-win for everybody, I make a good profit, and whoever buys a bike from me gets an awesome deal without driving a long way to Mississippi. So anyways, what do you think? Is it a good idea? I estimate just going over there about once a month and getting somethin I know I can sell quick and come back and sell it. Nothing crazy, just a little extra pocket change. Anyways, I'll stop babbling and y'all tell me what you think. Thanks.

If it was legal and that simple you would be at the back of the line of people doing it!!!

[TripleR]

ALWAYS check your state, county and municipal laws or your "profits" will end up going to a lawyer. My son in law has a dealer's license which are not all that hard to get in Missouri.

[GMCgrizzFI]

Hey I hear y'all...this is why I asked, because it's probably too good to be true. About taxes, you don't have to register your bike in Louisiana, therefore you don't have to pay taxes unless you buy in-state. Like I just sold my old Big Bear and all we did was sign the back of the title. I will check with some laws and everything and maybe even look into getting a dealers license. I surely appreciate all of your comments, thanks.

[tundrwd]

Couple of thoughts:

Most states have a limit to the number of vehicles that can be sold during a year, and still not be classified as a "dealer". You'll need to find out what that is, and if you would be selling more than that. Doesn't matter (generally), if the vehicles are new or used - the law is "designed" to deal with just such a plan as yours. Once you become a dealer (state fees, etc. aren't much to deal with - generally), the paperwork will be a definite problem.

Depending on where you live - you've got zoning laws to deal with. You can't be a dealer running a dealership out of your house, etc.

Depending on buying/selling laws in your state or locale, YOU may need to pay the sales tax on items you sell - even if you're NOT a dealer. Just depends. And I'll guarantee you'll run into some "strange" laws in LA - just because many laws are carryovers from when the French ran the place.

While you don't have to register or pay taxes in your state, laws are generally done in such a way that those who buy out of state, and don't pay taxes "voluntarily" are subject to fines, etc. if caught. If you become a dealer - you just sold it in state.

Also a consideration - since you've now posted your business plan, you've just given someone the alert that you intend to circumvent state law, etc. I'd say, in the old vernacular, "you've been hoist by your own petard".

Just some thoughts.....

[rmpetty]

Be careful & check your states tax laws! In PA.(as in most states) we have a "use" tax. Which simply means that if you buy ANYTHING out of state where sales tax is not collected - you are responsible to pay use tax on it which is the same rate as the sales tax. Buy off ebay? you must pay sales tax. Very careful.

[TripleR]

I am not an Anarchist or anything like that, but we really have too much government, (federal, state, county and municipal) involvement in our lives.

[Mad Mike]

Originally Posted by TripleR

I am not an Anarchist or anything like that, but we really have too much government, (federal, state, county and municipal) involvement in our lives.

yes we do but we need to leave that for another forum.

[GMCgrizzFI]

hey I really appreciate everyones input. And, in no way, am I worried about someone reporting my getting around the law or something. I'm just a man trying to better his family and think of creative ways to do so. I probably won't go through with it just because it seems too good and too far fetched. Then again, I might go buy a bike and come back and try my luck once or twice. In the end, I'll likely just do about 3 or 4 a year if I can and see where it goes. I'll definitely be giving the DMV a call today to see what all I'd have to do. Thanks again guys and keep the inputs coming.

[TripleR]

Originally Posted by Mad Mike

yes we do but we need to leave that for another forum.

Just an observation, not trying to hijack the thread/change the subject.

[preetyp]

Depending on where you live - depending on buying/selling laws in your state or locale, you may need to pay the sales tax on items you sell - even if you're not a dealer. It just depends.