Used Merchandise


License Overview 

Sale of previously owned audio-video equipment, construction materials, sporting or athletic equipment, currency, or anything made of precious metal, stone or gem such as jewelry or watches requires a Secondhand Dealer License.

 

Related Licenses 

  • Unless a Secondhand Dealer license is required for the sale of used merchandise, a Limited Business License is required for retail sale of general merchandise from a brick-and-mortar location.
  • A Peddler or Mobile Merchant License is required for the sale of general merchandise from a vehicle or cart.
  • Sale of merchandise that is specifically regulated such as tobacco, fuel, or liquor requires a specialized license, and may only be sold from a brick-and-mortar location.

 

Application Requirements 

  • A debt check will be conducted as part of the application process. All City debt must be resolved for the license to be issued.
  • A fingerprint-based background check will be conducted for all controlling persons as part of the application process. Every individual required to be fingerprinted must complete an Individual History Form.

 

Required Documents 

  • Documents required to identify the business depend on the business legal entity type. For more information, see the Required Documents page.
  • Individual History Form for all controlling persons required to be fingerprinted
  • Financial Disclosure Form

 

License Application Steps 

  • Submit initial business information in person or online
  • Receive zoning approval from the City
  • Complete and submit a full license application
  • Get fingerprinted for a fingerprint-based background check. Every owner, corporate officer, or any person who has a 25% or more interest in the business will be prompted to get fingerprinted.
  • Make payment for the license
  • Undergo a City debt check. All City debt must be resolved for the license to be issued.
  • Receive license once all requirements are met

 

For more information on license application steps, see the Business License Application Steps webpage.

 

Cost 

$1,100 License Fee

$40 processing fee per controlling person required to be fingerprinted

 

 

How to Apply 

In person: Visit the Small Business Center Visit Us webpage for wait times, location, and hours of operation.

Online: Visit the online business license application system.

 

Operating Requirements 

  • At the time of each transaction, the licensee must enter into the LeadsOnline database a description of the secondhand property received, purchased, sold or exchanged as well as the date and name and address of the purchaser or seller. More specific record keeping requirements apply to particular items such as watches, jewelry, and cell phones.
  • Licensees must report to the Police on a daily basis using the LeadsOnline database all required information regarding the purchase of secondhand property.
  • No purchase of secondhand property can be made from a minor without written consent from a legal guardian, from anyone appearing intoxicated or under the influence of drugs, or from anyone known to be a thief.
  • Catalytic converters cannot be purchased as secondhand property
  • The licensee must check the stolen cell phone database before purchasing any cell phone. Purchase of cell phones listed on the stolen cell phone database is prohibited.

 

Renewal Requirements 

A Secondhand Dealer License is issued for a period of two years and must be renewed prior to expiration. For renewal information, see the Renewal page.

 

Resources 

For questions, call 312-74-GOBIZ (744-6249) or 312.744.1944, or email businesslicense@cityofchicago.org