Requirements To Prepare Prior To Wholesale Car Dealer Licensing
There are people who like to venture into having a business and they prefer it if this involves one of their interests or hobbies. This is because they would know a lot about it already and only a little further study and research is needed. They could focus more on managing the company rather than learning the technical aspects of these things.
An example of this is if your interests are into cars and everything that involves them so you want to try going into a buy and sell business of them. The first thing you have to do though is to undergo a Wholesale Car Dealer Licensing process so you will be allowed to venture into this. This means you are only going to be selling batches of vehicles to other dealers and not to general public.
Start by checking the requirements specified by the Department of Motor Vehicles including those documents that need to get completed. Go to their website and look over the checklist presented there to give some general ideas of what you would need. There is also an application guide to help you when you do not understand your current progress.
Make sure you have a drivers licenses that is valid in the state that you will be applying to become a dealer. Purchase or lease a business location where you could conduct transactions and other things related to your venture. You must also have someplace to store the vehicles but it is not necessary for them to be located in the same place.
Though your home is not allowed to become your company location but can be used for storing your vehicles as this is not prohibited. If you got one already then make sure to have a deed, rental agreement or lease contract for that place. Take a photograph of it according to what is defined on the application guide.
Your location would be inspected during the process so make sure all additional requirements are met by it. Think of a business name you may use which should also explain what you do so prospective customers would know if you are the one they are searching for. It is filed with the use of Fictitious Name Statement that must be done prior to starting the licensing procedure.
Acquire a resale permit from the local Board of Equalization at your state that lets you collect taxes. This is free though you might have to make a deposit which depends on the individual situation of the business. You should keep this in order for you to acquire and keep the wholesale dealer license.
You would need a county or city business license in order to establish your company so check with the local chamber of commerce in your place. To acquire your dealership permit, either present a copy of this. You can also present a letter which specifies your county is not issuing them.
Get a surety bond that guarantees the dealer into adhering the local and state laws and regulations. This bond pay damages to parties harmed by something you have done. The value you will pay is dependent on your credit history.