Creating a small business solely for coin roll hunting

NordlandSalmon

I have an idea for coin roll hunting and I'm curious if anyone has done this before.
Banks don't really like giving out coins for personal reasons, but if you're a business, they seem to be a bit better about it.
With that in mind, has anyone here created an LLC and a basic small business account with a bank to see if they could get more?
I have no idea how easy or hard this would be, I'm going here before doing research just to see if people have experience with it.

pcgscacgold

My bank charges for rolls of coinage when I use my business account number. No fee if using personal account. Not sure if every bank is like that.

joeykoins

I can get ALL The coins and bank boxes I want at several banks.
NO charge either!

Mercury

My bank does charge for change and currency but the fees are cents.
You would have to be moving large sums of cash for it to amount to much.
They also charge for depositing change and currency on a business account.

jmlanzaf

Generally, banks treat the businesses worse. There will be more account fees, often, plus charges for coins ordered in many cases.

IkesT

You can often open a business account without having an actual business. Bank of America lets you do it. For coin roll hunting, the main advantage of having a Bank of America business account is that they allow you to deposit bags of coins (whereas you have to roll all coins for deposit if you have only a personal account).

ricko

@NordlandSalmon ... I am not sure there would be sufficient demand to support a business. After all, there would have to be a charge for supplying the product. However, if there were sufficient demand, wouldn't the already government supplied sources be pursuing it? Cheers, RickO

DCW

I knew a guy during the last recession that started a coin roll hunting business. He and his brother would search boxes and boxes of lincoln cents every day and put everything they found on eBay. Knowledgeable guys that knew all the varieties, big and small.
I think in the end, the effort outweighed the profit. You really have to pour through many thousands of coins to find enough valuable ones to make money at it. Certainly a labor of love and not a way to earn a living.

JWP

Coin roll hunting is a hobby. IN 2019 and 2020 when you could get boxes of quarters, CRH maybe was a business. Now you may have to through 2 - 3 boxes to fine 1 0r 2 " W " quarters. Trying to make a business just for CRH at best is a pipe Dream. Good luck with your vision, hope you can make it work.

MasonG

@JWP said:
Trying to make a business just for CRH at best is a pipe Dream. Good luck with your vision, hope you can make it work.

I think the idea is not to actually start a business, but to pretend to be one.

bearcave

He will have to check his local bank to see what they do business versus personal account.

Joe_360

You missed the boat, should have started at the release of W quarters in 2019...

davewesen

Good idea, having a hobby business to offset all sales on eBay with standardized mileage giving you a business loss. Does your area require licensing or taxation?

DelawareDoons

I did this years ago, circa 2009-2012.

Set up an LLC, and had business accounts with 4 banks. 3 feeders, 1 dump. Use a large national as your dumping bank, Bank of America is who I used. Feeders, use whoever is willing to order at little to no charge. Make sure your dump bank uses a different processor than your feeders so you aren't just searching your own stuff again right away. You'll inevitably get your own dumps as the couriers share coinage when short (or at least did back then) but using banks that utilize different services will limit how much of searching your own rejects you do.

I was doing $10,000 a week in halves at my peak.

Type2

I don’t know but I have seen pocket dealers go to coin shops buy lower grade coins at a good price and sell then for a nice profit. Why not look where you know there is a big verity to look at and not waste time hoping for a home run in rolls, you can even buy nice rolls form a B/M any way you can try good luck be safe and have fun.

JWP

@MasonG said:

@JWP said:
Trying to make a business just for CRH at best is a pipe Dream. Good luck with your vision, hope you can make it work.

I think the idea is not to actually start a business, but to pretend to be one.

Pretending is also called scamming. would you do business with a pretender/scammer?

jmlanzaf

@davewesen said:
Good idea, having a hobby business to offset all sales on eBay with standardized mileage giving you a business loss. Does your area require licensing or taxation?

You write off a loss on your hobby, you will raise the red flag with the IRS.

BLUEJAYWAY

One could open up a bank themselves. Then you'd have all the coins you'd want.

davewesen

@jmlanzaf said:

@davewesen said:
Good idea, having a hobby business to offset all sales on eBay with standardized mileage giving you a business loss. Does your area require licensing or taxation?

You write off a loss on your hobby, you will raise the red flag with the IRS.

what about when they expect people to pay taxes on their entire gross from new eBay forms ?

MasonG

@davewesen said:

@jmlanzaf said:

@davewesen said:
Good idea, having a hobby business to offset all sales on eBay with standardized mileage giving you a business loss. Does your area require licensing or taxation?

You write off a loss on your hobby, you will raise the red flag with the IRS.

what about when they expect people to pay taxes on their entire gross from new eBay forms ?

You're not expected to pay tax on your entire gross. It's your job to quantify your expenses, though. Nobody else can do it for you.

jmlanzaf

@MasonG said:

@davewesen said:

@jmlanzaf said:

@davewesen said:
Good idea, having a hobby business to offset all sales on eBay with standardized mileage giving you a business loss. Does your area require licensing or taxation?

You write off a loss on your hobby, you will raise the red flag with the IRS.

what about when they expect people to pay taxes on their entire gross from new eBay forms ?

You're not expected to pay tax on your entire gross. It's your job to quantify your expenses, though. Nobody else can do it for you.

Ditto.

The IRS is quite reasonable about allowing you to find the "net" profit. Due to my sloppy accounting, I ran afoul of them when I first started doing this. They allowed me to simply submit a letter of explanation - NO receipts - and an amended form.

But regardless of your filing, you can't create an annual business loss and call it a business. That is the definition of a hobby.

And, to your earlier point, how could you possibly offset "all sales on eBay with standardized mileage" unless every purchase was 500 miles from your house? You think that is more efficient and reasonable than simply telling the IRS that the cost of the goods sold was $250?

BStrauss3

@jmlanzaf said:
You write off a loss on your hobby, you will raise the red flag with the IRS.

Generally, to be a business you must run it with the intent to make a profit and show a profit in 3 of 5 years.