Chicago, IL Business Licensing & Operations: Secondhand Dealers (2026)
Key Facts
- License required
- per location or kiosk
- Standard license fee
- $1,100.00
- Children's-products-only fee
- $250.00
- Non-profit children's dealer
- fee waived
- Regulator
- Dept. of Business Affairs & Consumer Protection
Summary
Chicago requires a city license before buying, selling, or trading secondhand property like jewelry, electronics, or bikes for value.
It shall be unlawful for any person to engage in the business of a secondhand dealer without first obtaining a license therefor for each separate place, premises or location where such business is to be conducted, or for each automated recycling kiosk. The license issued pursuant to this chapter shall be administratively categorized as either secondhand dealer or secondhand dealer – non-valuable (collectively, "secondhand dealer"). (Added Coun. J. 12-9-92, p. 25465; Amend Coun. J. 4-22-93, p. 31558; Amend Coun. J. 2-26-97, p. 40141; Amend Coun. J. 2-22-17, p. 43916, Art. III, § 2; Amend Coun. J. 9-6-17, p. 54980, § 2)
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: 2026 S-74: Current through Council Journal of June 17, 2026).
Full Breakdown
Under Municipal Code of Chicago § 4-264-010, anyone doing business as a secondhand dealer must get a separate license for each location, or for each automated recycling kiosk. The Department of Business Affairs and Consumer Protection investigates applicants' character and compliance with state law before issuing the license (§ 4-264-020), and licenses are split into two tiers: full 'secondhand dealer' or 'secondhand dealer – non-valuable' for those who skip precious metals, gems, and currency (§ 4-264-005). Licensees must log every transaction into the LeadsOnline electronic database (§ 4-264-050). Pawnbrokers, licensed junk peddlers, permitted junk facilities, and licensed manufacturing establishments are carved out and covered by their own chapters instead.
Violations & Fines
Operating as a secondhand dealer without a license is a Chapter 4-264 violation subject to license discipline and citation; possessing five or more secondhand cell phones on one premises without a valid license creates a rebuttable presumption of operating as an unlicensed secondhand dealer under § 4-264-005.
Frequently Asked Questions
Does a Chicago secondhand dealer license cover pawnshops?
What counts as secondhand property under the ordinance?
Sources & Official References
Other rules in Chicago
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Secondhand Dealers in Nearby Cities
How other cities in Cook County handle secondhand dealers.