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Before the doors open: a used car dealership and its paperwork
Q: What licenses and permits might I need to start a used car dealership?
A: This is the list that goes with a used car dealership. It is the paperwork a business like yours commonly meets, and we sort out which pieces are yours.
1. Business license: A business license for a used car dealership MAY ask how many vehicles you will display, the size of your lot, your hours and whether you also finance or repair cars.
2. Sales tax permit: A sales tax permit MAY be needed because each car sold is a taxable sale, and trade-ins, dealer-to-dealer sales and fees may be treated differently.
3. Dealer license: Selling cars to the public usually requires a dealer license, often with a bond and a lot that meets set standards.
4. Salesperson license: Staff who sell vehicles may each need their own license where required.
5. Surety bond: A bond protecting buyers against fraud or title problems is commonly required.
6. Lot layout and signage plan: A drawing of the display lot, sales room and sign may be requested.
7. Employer registration: Hiring changes the list: an employer account, payroll tax setup and workers' compensation insurance MAY join the pile before the first paycheck.
8. Company papers: Depending on how you want to own and name the business, an LLC, a DBA or a tax ID number may come next; we prepare those too.
One service fee covers more than one license. If you order a business license and it turns out you also need another one, for example a home occupation permit, we obtain both for the service fee of the business license. Annual tax and application fees charged by the govt are not part of our service fee: we find the applications and fill them out for you.
Why it is worth the paperwork
Everyone needs wheels, and a reputable dealer who treats people fairly gets repeat sales and referrals from friends.
A small scene
Georgina hung a banner over her tiny lot, called it Sunrise Auto Exchange and waited patiently for her first buyer.
The reason owners form an LLC
A customer says you misstated a car's history and sues, and an LLC keeps the dispute away from your savings.
The numbers behind it
Business code (NAICS): 441120 (Used Car Dealers). This page lists 8 paperwork items for a used car dealership, and each one is marked as something you MAY need, since we confirm which apply.
Tip: Keep a file for every car with the history report, inspection results and a signed bill of sale.
A dealer's lot has two kinds of customers: tire kickers and the one who finally buys.
Ready when you are: start your order and we will find out what applies to your used car dealership, fill out the applications and keep the paperwork moving. |