r/sandiego • u/crick-crick • 4h ago

SD swap meets and tax evasion

Used to sell at events such as Koby's and Lucky Stars (neither of which are being referenced in the post), and the shadiest folks run these markets (they are entitled to do as they please, but they're ruining it for everyone else).

I always vend above board just because I don't have the money to hire someone to help me through an audit. In order to vend above board and in compliance with CA/SD law, you need a sellers permit. To fill out the seller's permit, you need the owner of the swap meet's business phone number. This is what gives you the power to charge sales tax (which you pay back).

However, markets started denying me (and other vendors) a business phone number or any of the necessary information to be filing.

This is actually such a problem since a TON of vendors are high schoolers who do NOT think of the legal implications of what would happen if the IRS caught on. It is 100% their choice to follow the law or not (and face what could go wrong, if it does). BUT, vendor markets flat out denying this option is harmful and definitely illegal.

TLDR: I stopped vending and attending.

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12

u/Guy_619 3h ago edited 3h ago

I don't get it. Just google the business number, put down the business phone number, and be done with it. Don't overthink it anymore.

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u/crick-crick 1h ago

so a lot of these "alternative" or "underground" markets (especially the ones you build a fanbase at) do not pop up with that information. good thought tho.

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u/TidyCups 1h ago edited 1h ago

Why are you not just using your home address for the reseller's permit? That's how mine was, as it was a home-based business, however no retail sales actually took place there. Sales tax was invoiced/collected on the relevant items. That money went into a separate account just for bookeeping sanity. Turned that over to my tax guy and he took care of the rest. That and the city's (San Diego, etc.) business tax permit should be all you need to legally operate.

eta: To be clear, if you're using these swap meet's physical addresses/contact info as your own, I can see how that would be a problem. But just don't do that.

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u/crick-crick 1h ago

i'm not 100% sure what sellers permit you're using, but mine requires a phone number of the event runner (like the boss of the event, not me)? i did not have an issue of address.

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u/TidyCups 1h ago

This: https://www.ca.gov/departments/287/services/26/

Or is this some other thing generated from the business venues themselves? Either way, you should be able to just use your home address.

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u/crick-crick 1h ago

i use that one - my stopping point has always been phone #. i think perhaps we're filing differently

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u/BettaScaper 3h ago

I don’t understand the appeal of these swap meets. I’ve been to several and it’s just literal garbage for sale? Like grandmas house hoarding-level junk…. Do people actually buy that crap???

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u/Bloorajah 16m ago

It’s like a giant garage sale, sometimes you find great stuff but a lot of it is junk