Q: Do I need to register as a scrap dealer in Michigan if I am an LLC. Can I be exempt as a corporation?
I live in Cedar Springs, Michigan. I am a traveling coin and bullion dealer and am a registered LLC and would like to buy scrap gold and silver from the public. My registered business address is my home and I would be buying from the public (using cash) outisde of my home. Am I required to obtain a certificate of registration to be a scrap gold buyer? I have a friend who owns a shop who is a corporation and he says he's exempt and does not need to register. I am referencing the Michigan Precious Metal & Gem Dealer Act. Thank you!
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A:
Under the Michigan Precious Metal and Gem Dealer Act, businesses engaged in buying precious metals and gems from the public are generally required to obtain a certificate of registration. This requirement applies irrespective of the business structure, be it an LLC, a corporation, or any other form.
Your status as an LLC does not automatically exempt you from this requirement. The Act applies to individuals and entities that buy precious items from the public, especially for resale or refining. Since you plan to buy scrap gold and silver, this would likely necessitate registration under the Act.
Your friend's situation as a corporation might be different due to specific exemptions or circumstances unique to his business. It’s important not to rely solely on anecdotal evidence but to verify the legal requirements applicable to your specific business situation.
To ensure compliance, review the provisions of the Michigan Precious Metal and Gem Dealer Act carefully. If there’s any confusion or ambiguity regarding its applicability to your LLC, consider consulting with a legal advisor. They can provide clarity on the Act's requirements and help you understand your obligations under Michigan law.
Remember, adhering to state regulations is crucial for the legal operation of your business and to avoid potential penalties or legal issues. Compliance not only protects your business but also builds trust with your clientele.
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