Laws on Starting a Gold Refining Business

Low-quality gold jewelry can be refined and sold for large profits.

When the price of gold rises amidst hesitation to invest in the stock market, small-scale gold-refining operations become a popular source of income. Starting a refining business, however, requires fulfilling the requirements of both business law and environmental laws related to the refinement process.

Zoning Law

Zoning laws are local ordinances that specify the types of businesses that may operate at a particular location. Home-business refiners must be particularly wary of violating the zoning laws for their residential homes.

Tax Laws

Business start-ups are required to register with both state and local authorities. Businesses must register their business name, obtain an Employer Identification Number (EIN) and register with their state tax agency.

Environmental Law

Because gold refiners must store, use and dispose of hazardous chemicals, they must be sure that their business practices comply with state and federal storage and reporting requirements. For example, Alabama requires annual reporting of the storage of chemicals above threshold levels. The Occupational Safety and Health Administration provides federal requirements for businesses using dangerous chemicals.

References

• Business.gov: Zoning Laws for Home-based Businesses
• Business.gov: 10 Steps to Starting a Business
• Alabama Department of Environmental Management: Emergency Planning and Community Right-To-Know Act (SARA III) Reporting in Alabama

Resources

• OSHA/EPA Occupational Chemical Database