Does a Scrap Metal Business Require a License?

Starting a scrap metal business can be a profitable venture. Scrap metal can be found in nearly all manufactured items, including bicycles, toys, appliances, computers, and food containers. If you plan to begin a scrap metal business of your own in Tucson, it’s important to determine whether you need a license for your business before you get started.

Arizona State Laws

In the state of Arizona, scrap metal dealers are identified as individuals or entities that engage “in the business of purchasing, trading, bartering, or receiving secondhand material that is commonly known as scrap metal.” Scrap metal dealers must register with the Department of Public Safety before they can legally conduct scrap metal business in Arizona; identification and other information must also be updated every two years. If you plan to sell scrap metal in Arizona, you must be over 16 years of age and conduct only a single scrap metal transaction per vehicle load; you may also not sell scrap metal to a dealer for cash more than once per day.

Reasons for Identification and Licensing

The main reasons for requiring scrap metal businesses to maintain proper identification and registration is to address the growing trend of scrap metal theft. By regulating scrap metal sales and requiring documentation for transactions over $25 or those that contain certain types of metals, these laws allow authorities to trace the origin of scrap metal if theft or foul play is suspected. In addition to registration with the DPS, scrap metal dealers are also required to register on a website that provides free theft notification to promote information sharing to further reduce metal theft.

Tucson Iron and Metal has been working in the scrap metal business for 25 years. We are pleased to offer scrap metal sales and purchasing, as well as roll off and demolition services in Tucson. You can find out more about buying or selling scrap metal by calling (520) 884-1554 or clicking through our website.