Blog Posts Categorized: Auto Dealer Bonds - Page 5

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California car washes must register and post a surety bond in order to operate in the state. Keep reading to find out how to become registered and why a surety bond is required.

Registration for California Car Washes

California car washes apply for registration online with the Department of Industrial Relations (DIR). Several types of car washes are exempt for applying for registration:

• Charitable, youth, service, veteran, or sports association offering car washing and polishing services intermittently for charitable, educational, or religious purposes
• Any individual, corporation, or partnership engaging another individual in providing car washing or polishing services
• Licensed vehicle dealer offering car washing or polishing services
• Self-service or automated car wash that has employees for cashiering and maintenance purposes

The DIR may require applicants to upload several documents along with their application:

• Proof of workers’ compensation insurance
• $150,000 surety bond
• Fictitious Business Name Statement�by county, for example Los Angeles County
• FEIN and SEIN documents (Federal and State Employer Identification Numbers)
• Statements of Information for LLCs and corporations
• Endorsed Articles of Incorporation or Organization or Certificate of Limited Partnership
• Business license
• Client Service Agreement, if applicable, or Collective Bargaining Agreement

California car washes must also submit form 8821 to the IRS and should allow the DIR up to 45 days to process their applications and determine if they can become registered. California car washes must also pay a registration fee of $300 per business location and must register annually.

Surety Bonds for California Car Washes

California car washes must post a $150,000 surety bond when registering. The required surety bond increased from $15,000 to $150,000 on January 1, 2014, following the passage of AB 1387. The bond ensures that California car washes pay employees’ wages as promised, including any interest on wages and fringe benefits owed to employees.

Car washes in California that have a valid Collective Bargaining Agreement are exempt from the surety bond requirement. All other car washes must have a valid surety bond at every renewal.

Ready to get a California surety bond? Single Source Insurance can help get the best rate for your car wash surety bond!

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If you’re interested in becoming licensed as a North Carolina auto dealer, you should be familiar with the state’s licensing requirements and regulations. Keep reading to find out how to become licensed, and apply online for the bond you need.

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North Carolina Auto Dealer License Requirements

In North Carolina, both new, used and wholesale auto dealers must be licensed. Motor vehicle manufacturer dealers, factory branches, and distributors must also be licensed and bonded, but this article will focus on dealers. An auto dealer is someone who sells, displays for sale, or arranges the sale of five or more vehicles in a twelve-month period. If you want to apply for a North Carolina auto dealer license, complete the state’s application. Some of the information required by the state Department of Transportation includes the following:

• $90 licensing fee
• Type of ownership (individual, LLC, partnership or limited partnership, corporation)
• Firm name and/or DBA
• Physical and mailing address of business
• Name, age, address, and title of all owners or partners
• Any additional locations in North Carolina where vehicles will be sold
• Number of qualifying sales representatives employed (employees working 25 or more hours per week)
• Established salesroom for retail dealers
• Established�office for wholesale dealers
• Traders’ license from city or county
• $50,000 surety bond, plus $25,000 per additional business location

If you apply for a used North Carolina auto dealer license, you must complete a 12-hour licensing course approved by the Division of Motor Vehicles before initial licensure and a six-hour licensing course when renewing your license. Those already licensed as a new motor vehicle dealer are not required to complete the licensing course.

The guidelines for an established salesroom are outlined in North Carolina General Statues §20-286, mandating the following:

• At least 96 square feet of floor space in a permanent enclosed building
• Displays or is adjacent to a sign with letters no less than three inches high with a contrasting background, stating the business’s trade name
• Place of business where the sale of motor vehicles is conducted in good faith and where the public can contact the dealer
• Place where the dealer’s books, records, and files are kept as required by the Division

An established office is defined as being at least 96 square feet of floor space in a permanent building where the wholesaler’s books, records, and files are kept. Traders’ licenses refer to any business licenses that are requirements of the city or county where the North Carolina auto dealer or wholesaler conducts business. Auto dealers’ licenses expire one year after issuance.

North Carolina Auto Dealer Surety Bond

North Carolina auto dealer applicants and licensees must obtain a $50,000 surety bond, plus $25,000 for each additional location where the dealer will conduct business. The surety bond is a dealer’s guarantee that they will comply with Articles 12 and 15 of Chapter 20 of the North Carolina General Statutes. Violations of these articles include unfair methods of competition, one of which being a vehicle manufacturer, factory branch, or distributor having ownership or interest in a vehicle dealership.

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The surety bond can be canceled with 30 days’ written notice to the state, and can only be canceled if the dealer ceases operation, their license is suspended, denied, or revoked, if the bond’s premium is not paid, or if the dealer misrepresents themselves when applying for the bond.

The state Department of Transportation has created a checklist to help those applying for a North Carolina auto dealer license. Almost done checking off your list? Get in touch with Single Source Insurance so you can get bonded in North Carolina!

Considering getting your California auto dealer license? The process may seem complicated, but this guide can help you take the right steps toward getting licensed and bonded to do business. Learn more, and apply for the bond you need online today.

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How to Get a California Dealer License

The first step toward getting licensed is deciding what kinds of vehicles you’ll be selling. California issues either a new vehicle dealer license or a used dealer or dealer wholesaler license. California also issues licenses to motorcycle and all-terrain vehicle dealers, but this article focuses on auto dealers in the state.

New California auto dealer applicants can consult�form OL-248A�for a complete checklist of information the state requires, and used dealer or wholesaler applicants can consult�form OL-248B. Among other items, new dealer applicants must submit the following information to the California Department of Motor Vehicles:

• Application for original occupational license, Part C
• Original application for occupational license, Part A
• $175 non-refundable application fee (plus other applicable fees)
• California auto dealer surety bond
• Authorization to release financial information

Used California auto dealer applicants must submit the same documents and fees, including others, and must attend a dealer education program and pass a DMV-administered exam. Both new and used dealers should consult the state-provided checklists and thoroughly review their application requirements before submitting any information to the DMV.

California Auto Dealer Surety Bond

Most California auto dealer applicants need a $50,000 surety bond to become licensed, though wholesale-only dealers selling less than 25 vehicles per year need only a $10,000 surety bond. Single Source Insurance can write a California auto dealer surety bond for as little as $400 a year!

California auto dealer surety bonds guarantee the dealer’s performance in accordance with the California Vehicle Code. Some violations of the code and consequently of the surety bond include the following:

• Making untrue or misleading statements in advertising
• Advertising or representing used vehicles as new vehicles
• Engaging in business without a valid surety bond
• Advertising prior use or ownership of a vehicle inaccurately

Section 11713 of the Vehicle Code and its subsections detail several other license violations, which can result in license suspension or revocation and fines of up to $1,000 per violation. In the event of a violation that causes monetary damages to a consumer, the consumer can file a claim against the dealer’s surety bond. If a claim is proven and paid, the bonded party must reimburse the surety for the damages paid out.

More Information for California Auto Dealers

Among many other prerequisites to become a licensed California auto dealer, the state requires a place of business inspection. Each business location must be inspected, including all business records and books.�Business signs must be no less than two square feet and readable from 50 feet away, containing the business’s name and address. The state of California has created a how-to guide for new applicants, as well as guide for licensed dealers, which every California auto dealer should consult to stay compliant.

Ready to get a California auto dealer surety bond? Single Source Insurance can help!

Texas Dealer License Requirements

Any person who wants to engage in the business of buying, selling or exchanging motor vehicles as a dealer in the state of Texas needs to apply for a Texas auto dealer license.

On the application they will receive a distinguishing number issued by the Motor Vehicles Division. This is popularly referred to as GDN (General Distinguishing Number). If the person wants to sell new motor vehicles, they must acquire a franchise dealer license in addition to the GDN.

The GDN is the basic dealer license that enables a person to buy, sell or exchange any type of used vehicle for which the number has been issued. The GDN licenses are available in many categories and you need to make the choice during the application of a new license. During the application process you can choose one individual license type or apply for multiple license types. If you want to choose multiple types, you may have to submit multiple applications.

License Types

Independent Motor Vehicle � Buy, sell and exchange any type of used ATVs, motorcycles and motor scooters. May also sell neighbourhood vehicles. Buyer�s temporary tags, dealer temporary tags, dealer license plates on motor cycles only may be used. Bond needs to be provided. Get Bonded Now.

Independent Motor Cycle � Buy, sell and exchange used ATVs, motorcycles and motor scooters. Buyer�s temporary tags, dealer temporary tags, dealer license plates on ATVs, motor scooters and motor cycles only may be used. Bond needs to be provided. Get Bonded Now.

Travel Trailer � Buy, sell and exchange used travel trailer. Buyer�s temporary tags, dealer temporary tags, dealer license plates on travel trailers only. Security requirement is exempted.

Trailer or Semitrailer � Buy, sell and exchange used travel trailer and semitrailer. Buyer�s temporary tags, dealer temporary tags, dealer license plates on travel trailers and semitrailers only. Security requirement is exempted.

Wholesale Dealers � Sell and exchange vehicles only with other licensed dealers. A five vehicle display area is not required. Vehicles cannot be sold to retail purchasers. Wholesale vehicle dealers may buy, sell and exchange used vehicles (motor vehicles, motor cycles and travel trailers, used trailer and semitrailer). Metal dealer license plates and temporary tags may be used. Bond needs to be provided. Get Bonded Now.

Wholesale Motor Vehicle Auction � Vehicles can be sold by bid only to licensed dealers. This needs to be done at a permanent location in a bona fide auction. Bond to be provided. GDN should not be made available to any other person for the purpose of auction of vehicles. The GDN may be issued for only one particular wholesale auction at a specified location. A regular motor vehicle GDN may be issued for a location for which a wholesale GDN has been issued. Get Bonded Now.

Independent Mobility Motor Vehicle Dealer License � This license allows the dealer to sell new mobility motor vehicles. This is a motor vehicle that is designed to transport a person with disability.

Now that you have gained knowledge about the different license types, you need to understand how the application process works. Each license type has detailed information about the documents required to apply for each one of them. All licenses are issued for a period of two years and are not transferable to any other dealer.

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The total GDN fee is $700.00. The fee for dealer license plate is $90.00. You need to specify the number of metal dealer license plates you require. There is a limit to the number of metal dealer license plates you can order.

You can apply for the metal dealer license plates with a new application, renewal and any time during the license period. You can choose to make the payment using a credit card. The renewal fee for each GDN is $400.00 and for each dealer license plate is $90.00.

If you are planning to relocate to a location that is outside the city limits of the existing location, you may have to make a new application for the license. Relocation of any type has to be conveyed to the licensing authorities so that changes are made to the license.

Documents Attached to Application

• Ownership information

• Proof of identity � A photo copy of the current driver�s license of owner of the dealership or managing partner of the dealership. If it is a general partnership, then the driver�s license of each partner has to be submitted. Apart from this you may also submit a valid passport or any state issued identification card.

• Assumed name certificates � These certificates need to be issued by proper authorities. The Texas Secretary of State is the proper authority for issuing assumed name certificates for corporations, LLCs, LLPs and LP. For general partnership and sole proprietor, it is the county clerk in the county in which the dealership is situated. The assumed name on the application must match with the assumed name that you have registered.

• Certificate of incorporation or partnership

• Auto dealer surety bond � GDN types (motor vehicle dealer, motorcycle dealer, wholesale only dealer, wholesale motor vehicle auction, independent mobility vehicle dealer) that are not licensed as a franchise dealer need to submit an auto dealer bond of $25,000.00. The car dealer surety bond has to be supported by a power of attorney from a surety company. A separate auto dealer bond is required for each category of license. Get Bonded Now.

When submitting theauto dealer surety bond along with the application, you need to ensure that the surety bond is on forms that matches the approved sample in the package. The business name that is to be on the GDN must be shown on the bond. The information provided on the bond must match exactly with that of the license application. This includes the address.

The auto dealer bond must be issued for at least 2 years and must expire on the last day of the month. This should correspond with the dealer license expiration date. The lease cannot end prior to the bond expiration. The bond must be signed and dated by both the dealer and bonding agent. All required signatures need to be there on the bond.

If there are any kind of typographic errors or misspellings it can invalidate the bond. It needs to be corrected with a rider and power of attorney. If additional locations are applied for, then the address of all these locations must be on the bond.

Application Process

After the application is received it is processed by finance for fees. The Texas Comptroller of Public Accounts processes money orders and checks. The credit card payments are processed by TxDMV Motor Vehicle Division. If the fee is not processed, the license is not approved. The fee process is the first step to issue a Texas car dealer license.

The application is then scanned into the licensing system and a work item number is allotted. Email conformation is sent by the licensing system providing item work number and other basic details. The application is then reviewed with the information that has been provided. If there are any type of deficiencies more information is sought.

The licensing specialist may call or mail you about the list of deficiencies in the application and how they need to be corrected. The deficiencies need to be corrected and relevant documents submitted. This will be checked once again before sending the GDN to the mailing address mentioned in the application form.

Dealer License Renewal

The term of each license is two years. The licensing authorities will send a notice 75 � 90 days prior to expiration. The renewal notice needs to be returned with relevant documents along with the proper fees at least 45 days before the license expiration. The responsibility of maintaining the license is with the dealer and if they do not receive a notice they need to contact the licensing authorities.

One of the important things that you need to remember is that there is no grace period for renewal of license. After the license expires you may not be able to sell and exchange any type of vehicle. The dealer plate also expires with the license. Dealers sending renewal forms after expiration of license may have to pay penalty for renewal. The penalty fee is 50% of the total license fee. The renewal process has to be completed within 90 days or you may have to apply for a new license.

Dealers are advised to provide good contact numbers in the license application or renewal forms so that the licensing authorities can contact them immediately for any kind of additional information. It is best to review the application form and the documents attached before sending them for processing. The name, dates and addresses on the bond should be entered correctly.

If you are uncertain about any of the documents to be submitted or any other aspect of the application, it is best to talk with the licensing authorities so that you are able to make a proper submission. This can ensure quick processing and you may be able to get your Texas car dealer license fast.

The time is coming for all Georgia used car dealers to renew their $35,000 2 year surety bonds.

Georgia car dealers will need to renew their surety bond by February 29th (it’s a Leap year!) in order to avoid a cancellation notice. �Most dealers do not realize that 30 days prior to March 31st (The renewal date of the surety bond) the surety companies will send out a cancellation notice to the State of Georgia. �This is mandated by law.

Renewing your dealer bond is simple, easy, and affordable with our quick online application here. �Rates start at $187 for a 2 year bond based upon credit.

There is NO reason to wait to renew minutes before the deadline.

Scared of high premiums because you have weak credit? �NO PROBLEM – We can finance that larger premium for you!

Apply today online and get a free, no obligation quote at�Georgia Dealer Application.

We DO NOT charge ANY fees!

We send your bond request to the top surety companies in the world for the best rates!

We are also a proud member of the GIADA.

Learn How To Get A Florida Car Dealer License. We’ll teach you everything you need to know about dealer license requirements, bonding, and renewals.

First: You must register and attend a pre-licensing class. �There are several across the state to choose from. �You can always go to the Florida Independent Auto Dealers Association for more information on classes at http://www.fiada.com.

Second: A location will be required and inspected in order to obtain a valid license. Once you have a location, you will need to contact the DMV for an inspection.

Next: You must obtain a $25,000 surety bond with a reputable agency such as ourselves and provide the bond along with the attached power of attorney to the DMV.�You must also provide garage liability insurance of at least $25,000 combined coverage.

If you have any questions on how to obtain your Florida dealer license please do not hesitate to contact us at 855-689-5106 or by email at info@absolutesurety.com.