You don't need a special "LEGO reseller license" to sell minifigures, but you do need proper business licensing for any reselling operation. The confusion comes from mixing up business licenses (required) with brand authorization (not needed for secondhand sales). Most resellers operate legally without any special permits from LEGO. What matters is following your local business license requirements, sales tax rules, and staying within fair use guidelines. Here's what you actually need to know about licensing for your LEGO reselling business.
Business license requirements for LEGO reselling
Your city or county likely requires a general business license for any reselling activity. This isn't specific to LEGO - it covers all retail operations. Check with your local clerk's office or search "[your city] business license" online. Most cost $50-200 annually and take a few weeks to process.
Some areas also require a resale permit or seller's permit. This lets you buy inventory without paying sales tax upfront, then collect and remit tax on your sales. Apply through your state's revenue department.
Sales tax obligations
You must collect and pay sales tax in states where you have "nexus" - basically anywhere you live, store inventory, or sell frequently. This applies whether you sell on eBay, BrickLink, or local markets.
Most states offer online registration for sales tax permits. You'll file returns monthly, quarterly, or annually based on your volume. Keep detailed records of every sale, including buyer location and tax collected.
LEGO's trademark and your rights
LEGO owns trademarks on their brand name and many product names, but you have "first sale doctrine" protection. This legal principle lets you resell genuine LEGO products without permission. You can use terms like "LEGO minifigure" in listings because you're describing the actual product.
Don't claim to be authorized by LEGO or use their logo in your branding. Stick to factual descriptions and you'll avoid trademark issues.
Record keeping essentials
Document every purchase and sale for tax purposes. Track:
- Purchase date, source, and cost
- Sale date, platform, and final price
- Fees and shipping costs
- Buyer location for tax calculation
This data proves your business expenses and helps with accurate tax filing. Many resellers use spreadsheets or accounting software to stay organized.
Related reading
FAQ
Do I need LEGO's permission to resell their products?
No. First sale doctrine protects your right to resell genuine LEGO products you legally purchased. You don't need authorization from LEGO for secondhand sales.
What's the difference between a business license and resale permit?
A business license authorizes you to operate any business in your city/county. A resale permit lets you buy inventory tax-free and collect sales tax from customers. Most resellers need both.
Can I use 'LEGO' in my business name or listings?
You can use 'LEGO' to describe products in listings, but not in your business name or branding. Stick to descriptive use like 'LEGO Star Wars minifigure' rather than 'Bob's LEGO Store.'
Do I need different licenses for different selling platforms?
No. Your business license and sales tax permit cover sales across all platforms - eBay, BrickLink, local markets, etc. The platform doesn't change your licensing requirements.
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