How to Start an Antique Store

Start an antique store by following these 10 steps:

1. Plan your Antique Store
2. Form your Antique Store into a Legal Entity
3. Register your Antique Store for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Antique Store
6. Get the Necessary Permits & Licenses for your Antique Store
7. Get Antique Store Insurance
8. Define your Antique Store Brand
9. Create your Antique Store Website
10. Set up your Business Phone System

We have put together this simple guide to starting your antique store. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Antique Store Name Generator

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name, we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability.

It's very important to secure your domain name before someone else does.

What are the costs involved in opening an antique store?

If you are looking at becoming a dealer on a part-time basis and enjoy trading relatively inexpensive items, this can be a low-cost business to start. You will need at the very least an online store through ebay or Etsy, some starting inventory, and an ability to receive payments. You could operate this as a weekend endeavor using only a few thousand dollars for your initial investment. Should you consider opening a large antique storefront in an old mill or warehouse, you could spend up to $500,000 buying or leasing the property, installing display areas, and purchasing enough inventory to open your doors.

What are the ongoing expenses for an antique store?

You are always buying and selling, so you should have a good line of credit able to withstand a spending spree. You will need reliable transportation and possibly need to maintain an online store. Your display space or store comes with some maintenance costs.

Who is the target market?

Your most valued customer is the individual or designer who appreciates your eye for unique and quality items such that they return to your store for another piece to work into their home. Customers who regularly purchase from antique stores value quality construction and elegance over a fancy showroom with over solicitous sales staff. They desire to strike a bargain and feel that they own a piece of history that nobody else can have.

How does an antique store make money?

As the owner/operator you will constantly be shopping for new items for your booth or online store and will turn a profit by re-selling them at a higher price. You are more successful if you turn your inventory quickly and often. Large expensive items can linger, slowing your income stream and leaving the impression with shoppers that you never have anything new.

How much can you charge customers?

It all depends on your products. You might sell vintage Hot Wheels for $2 each or a massive mirror designed for a courthouse for $5,000. Market trends will always determine your pricing structure.

How much profit can an antique store make?

A standard profit margin for many dealers is about 30%, but keep in mind that you will be taking out listing fees, consignment fees, and other expenses. A successful antiques business owner can see an income of between $45,000 and $60,000 a year. It is not a means to become a millionaire.

How can you make your business more profitable?

Be willing to get rid of merchandise that is sitting on your shelves. If you paid for it and it just collects dust, it is not providing you any kind of income. Always keep in mind you are not the collector, your customer is!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your antique store is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate an antique store business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

Certificate of Occupancy

An antique store business is generally run out of a storefront. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO).  A CO confirms that all building codes, zoning laws and government regulations have been met.

• If you plan to lease a location:
• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to an antique store business.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.

• If you plan to purchase or build a location:
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for your business’ location to ensure your antique store business will be in compliance and able to obtain a CO.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

If you have a passion for a beautifully crafted table or marvel at the function of an old butter churn, you have the first requirement of a successful antiques dealer. You must also have a burning desire to turn a profit and be able to let go of your carefully selected inventory quickly and without any sense of loss. This is above all else a means to make money.

What happens during a typical day at an antique store?

Whether you operate a large antiques store or maintain a small booth in a mall, on a daily basis you will:

• Shop for new pieces at other antique stores, visit flea markets, estate sales, and second-hand stores
• Build an extensive knowledge of your specialty area such as toys, art, fine furniture, and curiosities
• Market your wares according to what is popular and desirable as trends change
• Price your product such that it moves quickly while turning a profit over your purchase price
• Develop your displays to attract shoppers
• Maintain ledgers/spreadsheets to track incoming and outgoing items
• Mark down inventory that has lingered on your shelves for too long
• Bargain with interested customers in order to make the sale
• Barter with other dealers to ensure you always have fresh inventory for returning shoppers

What are some skills and experiences that will help you build a successful antique store?

An antique store is run by an individual with a unique set of skills including:

• Encyclopedic knowledge of your specialty area including known manufacturers, dates of production, and what constitutes a rare and valuable piece
• Has a finger on the pulse of popular items in the antiques market and adjusts inventory accordingly
• Able to create stunning and attractive displays that highlight your most profitable items
• Basic accounting skills
• Friendly and approachable demeanor, ability to chat with all your customers
• Places minimal sentimental value on inventory, yet appreciates the beauty of each item
• Innate ability to create lasting relationships with other dealers to obtain the lowest price for new product
• Willing to utilize the internet to extend reach and increase sales
• Know how to pack and ship valuables to ensure they reach their new home in one piece

What is the growth potential for an antique store?

The antique boutique capable of expanding will be run by a person who has a talent for building relationships in the business. As you accumulate the names, numbers, and preferences of your clients and competitors, you can start buying items with certain customers in mind. When you become a personal shopper, you can charge a premium for your items and service. Over time, you may expand into a larger storefront as you begin to hire other dealers ready to further expand your customer base. When clients begin to call you looking for a specific item, you are on the road to expanding your business.