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What a car sales business MAY need before opening day
Q: What do I need to get a car sales business up and running legally?
A: This is the list that goes with a car sales business. It is the paperwork a business like yours commonly meets, and we sort out which pieces are yours. It also lists the personal license or trade license of the person doing the work, because a business license alone does not cover that.
1. Business license: A business license for a car sales business MAY ask whether you sell new or used vehicles, how many you display, and whether you work from a lot or by appointment.
2. Sales tax permit: A sales tax permit MAY be needed because vehicle sales are taxable, and trade-ins, fees and dealer-to-dealer sales may be handled differently.
3. Professional or trade license: Salesperson license: Individuals selling vehicles on a dealer's behalf may each need a personal salesperson license, typically requiring an application, background review and sponsorship by a licensed dealer.
4. Dealer or broker license: Selling cars for a living usually requires a dealer or salesperson license.
5. Bond requirement: A surety bond protecting buyers against fraud may be required.
6. Lot and sign plan: A drawing of the display lot and sign may be requested.
7. Title and bill of sale templates: Sample forms for transferring ownership may be asked for.
8. Employer registration: Once people are on the payroll, you MAY also need an employer ID, a withholding account and workers' compensation coverage.
9. 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
Selling cars is a people business, with the shine of fresh wax, the clean-seat smell and the happy photo of a buyer holding new keys.
A small scene
Picture Humphrey wiping the dust from a blue sedan for Lakeside Auto Sales, the new license in a frame leaning on the desk.
A cautionary example
A buyer says you misrepresented a car's history and sues, and an LLC keeps the dispute from your savings.
Codes and counts
Business code (NAICS): 441120 (Used Car Dealers). This page lists 9 paperwork items for a car sales business, and each one is marked as something you MAY need, since we confirm which apply.
Tip: Run a history report on every car and share it with buyers before the sale.
Car salespeople have one tool for every question: 'let me ask my manager'.
Ready when you are: start your order and we will find out what applies to your car sales business, fill out the applications and keep the paperwork moving. |