Requirements
CollectiblesRequirements to Start a Collectibles Sidegig
Essential Equipment
- Smartphone with quality camera $0-$1,000
- Digital scale (0.1g precision) $20-$50
- UV light for authentication $15-$40
- Acid-free storage supplies (card sleeves, comic bags, etc.) $50-$200
- White cotton gloves $5-$15
- Shipping materials (boxes, bubble wrap, tape) $50-$100
- Light box or photo setup $30-$100
- Measuring tools (ruler, calipers) $10-$30
Essential Skills
Technical Skills
- Authentication knowledge for your niche
- Condition grading expertise
- Product photography
- Basic inventory management
- Shipping and packaging techniques
Soft Skills
- Negotiation abilities
- Research aptitude
- Patience for market timing
- Networking with collectors and dealers
- Customer service orientation
Initial Inventory Investment
Starting capital requirements vary by collectible category:
| Collectible Category | Minimum Viable Inventory | Recommended Starter Inventory |
|---|---|---|
| Trading Cards (Sports, Pokémon, MTG) | $500-$1,000 | $2,000-$5,000 |
| Comics | $1,000-$2,500 | $3,000-$7,500 |
| Vintage Toys | $1,000-$3,000 | $5,000-$10,000 |
| Coins & Currency | $1,000-$2,000 | $3,000-$8,000 |
| Vinyl Records | $500-$1,500 | $2,000-$5,000 |
| Video Games | $800-$2,000 | $3,000-$7,000 |
Legal & Regulatory Requirements
Requirements vary by location and scale of operation. Consult with a local business attorney for specific guidance.
Business Structure
- Sole Proprietorship: Simplest structure for beginners (minimal paperwork)
- LLC: Recommended when inventory exceeds $10,000 (provides liability protection)
Permits & Licenses
- Business license (typically $50-$500 depending on locality)
- Sales tax permit (usually free but requires regular filing)
- Home occupation permit (if operating from residence, $25-$200)
- Special permits for certain categories (e.g., firearms-related collectibles)
Tax Considerations
- Income must be reported on Schedule C (self-employment)
- Self-employment tax applies (15.3% on net earnings)
- Sales tax collection requirements vary by state (marketplace facilitator laws)
- 1099-K reporting threshold currently $600 for payment processors
- Inventory can be deducted as cost of goods sold
Industry-Specific Regulations
- Collectible Coin Authentication Act (prohibits selling counterfeit coins)
- CITES regulations for vintage items containing restricted materials
- FTC rules regarding accurate item descriptions
- Platform-specific selling policies and prohibited items lists
- Intellectual property laws (avoiding counterfeit/unlicensed reproductions)
Space & Storage Requirements
Minimum Space Needs
- Dedicated storage area (50-100 sq ft initially)
- Photography station (3x3 ft minimum)
- Packing/shipping area (desk or table)
- Climate-controlled environment (65-70°F, 45-55% humidity)
Storage Considerations
- UV-protected storage for light-sensitive items
- Acid-free containers and dividers
- Shelving systems (adjustable recommended)
- Security measures for valuable inventory
- Organization system for quick retrieval
Insurance Requirements
Standard homeowner's policies typically limit collectible coverage to $1,000-$2,000. Consider:
- Specialized Collectibles Insurance: Through providers like American Collectors, Collectibles Insurance Services, or Collect Insure ($1.50-$3 per $100 of value annually)
- Business Property Insurance: For inventory exceeding $5,000 ($300-$600 annually)
- Shipping Insurance: Through third parties like Shipsurance (typically 1-1.5% of declared value)
- General Liability Insurance: If attending shows or having customers visit ($500-$1,000 annually)
Total Estimated Startup Costs
| Category | Minimum (Budget Start) | Recommended (Serious Start) |
|---|---|---|
| Equipment & Supplies | $200-$400 | $500-$1,500 |
| Initial Inventory | $500-$1,500 | $3,000-$10,000 |
| Business Registration & Permits | $50-$300 | $300-$800 |
| Insurance | $0-$300 | $500-$1,500 |
| Reference Materials & Education | $50-$150 | $200-$500 |
| Storage Solutions | $100-$300 | $500-$1,200 |
| TOTAL | $900-$2,950 | $5,000-$15,500 |
Many collectors start with existing personal collections, which can significantly reduce initial inventory costs.