How to Open a Pawn Shop Business in Washington

Specialty licenses are required to open a pawn shop business in Washington

You can combine your interests in running your own business and your love for secondhand treasures by opening a pawn shop in Washington state. A key component of the pawn broker business is lending money and holding collateral for a period of time. With a keen eye for detail and an ability to determine the monetary value of secondhand goods in your local economy, you're on your way to becoming a pawn broker. In order to open your own pawn shop business in Washington, the state requires several types of specialty licenses.

Things You'll Need

• Detailed business plan
• Criminal background check from the State of Washington
• Documented funding to support the pawn shop business for six months

Instructions

1. Confirm with the city clerk or county licensing division that the zoning regulations for the location of your business accommodate your type of business.

2. Submit a master business application to the state of Washington for your pawn shop business. On this application you will apply for a UBI (Unified Business Identification) number and unemployment and industrial insurance which you must have prior to hiring employees. On the master business application, you must also register any equipment that you will use to weigh or measure items.

3. Obtain a business license from the incorporated city or unincorporated county in which your pawn business is located. The city or county in Washington will require you to apply for a Secondhand Dealer and/or Pawn Broker or Pawn Shop license if you will loan money secured by personal collateral.

4. Contact the county assessor's office, which will require you to submit personal and property tax based on the value of the business property, equipment and supplies.

5. Contact the Washington State Department of Revenue to determine the sales tax you will collect from customers on sales if you will provide a service. The Department of Revenue will advise you on the frequency of tax reporting and submitting, based on the dollar amount of your monthly or quarterly sales.

6. Apply for a Washington firearms dealer license from the Washington State Secretary of State. Prior to applying for this license, you must already have a Washington master business license and a federal firearms dealer license.

7. Obtain a certificate of occupancy for your business location from the city clerk or county licensing division if your business is the first occupant of a newly constructed building.

8. Verify signage regulations for your business location with the city clerk or county licensing division. Many areas in Washington state have specific guidelines regarding the type of sign (neon, electric, non-electric, etc.) and the size of sign that businesses can display. The business unit's square footage often determines the size of allowed signage.

Tips & Warnings

• The Washington State Department of Licensing website has an online guide that will help you determine the types of licenses required by the city and/or county depending on the location of your business.

References

• Washington State Department of Licensing Business & Professional

Resources

• National Pawnbroker's Association