Q: I'm in Fontana, California. I want to introduce buyers and sellers for a commission each sale. Do I need a license?
I might something negotiate a price down or up, or encourage a potential customer to buy more. If the need for license is industry specific, please inform me of which industry. (I know a supplier of sugar that I might want to find sales for. Also, I'm independent.)
EDIT: I should probably include that it also involves working out how long the buyer is interesting in buying. For example, I might work out with the buyer that he is interested in buying a material for $200 for 12 months. I would then go to the supplier, inform them of the buyer, and then work out a commission. Does this change anything concerning the need for a license?
Also, what kind of agreement with the supplier would you recommend? I'm interested in receiving a commission per each sale, even if the sale comes from a new contract. Is that possible?
A:
Based on the information you provided, it seems like you are interested in acting as an independent sales representative or broker, facilitating transactions between buyers and sellers in exchange for a commission. The need for a license largely depends on the specific industry and the nature of the products being sold.
In your case, since you mentioned sugar as a potential product, it is important to note that food products are subject to various regulations. However, in most cases, a license is not required for an independent sales representative or broker, as long as you are not physically handling, storing, or transporting the product.
That being said, there are a few things to consider:
1. Contracts: It is essential to have clear agreements in place with both the supplier and the buyer. These agreements should outline the terms of the sale, commission structure, and any other relevant details. Consult with a legal professional to draft appropriate contracts.
2. Commission structure: Regarding your commission, you can negotiate with the supplier to receive a percentage of each sale, even if the sale comes from a new contract initiated by the buyer you introduced. This is a common arrangement for independent sales representatives.
3. Business registration: While you may not need a specific license, you should consider registering your business with the state of California and obtaining a seller's permit if you plan to sell tangible goods.
4. Industry-specific regulations: Depending on the products you represent, there may be industry-specific regulations to follow. Research the regulations for the food industry and any other relevant sectors.
In summary, while you may not need a specific license to act as an independent sales representative in Fontana, California, it is crucial to have clear contracts, understand the relevant industry regulations, and consider registering your business. Always consult with legal and tax professionals to ensure compliance with local, state, and federal laws.
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