Do I Need a License to Buy Scrap Metal?

Whether you need a formal license to buy scrap metal depends on your state. Approximately 35 states require some form of state-level registration before you can legally purchase regulated metals from the public as a business. Others require only a local permit. A handful have no specific requirement — though general business licensing still applies everywhere.

States Requiring Formal State Registration

These states require a state-issued license, registration, or permit before operating as a scrap buyer:

Alabama, Arizona, Arkansas, California, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maryland, Michigan, Mississippi, Missouri, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, West Virginia, Wisconsin

States With Local-Only Requirements

Alaska, Delaware, Hawaii, Maine, Massachusetts, Minnesota, Montana, Nebraska, New Hampshire, North Dakota, Rhode Island, South Dakota, Vermont, Wyoming — check with your city or county clerk.

Even in states without scrap-specific registration: All dealers must comply with seller ID retention laws, prohibited items rules, and payment delay requirements where they exist — and a general city or county business license is required everywhere.

FAQ

Most state scrap laws apply only to businesses — entities that buy scrap for resale or processing on a regular basis. Casual, one-time transactions generally do not trigger registration. However, if you buy from the public with any regularity, most states consider this a business activity requiring registration. The line is not always clearly defined — consult a local attorney if uncertain.

Requirements change. Verify with your state licensing agency. Not legal advice.