Automotive Industry Business Licensing

Overview

The automotive industry is heavily regulated by federal, state and/or local authorities, depending on the specific type of business license and the jurisdiction in which a business is located. Authorities are not only concerned with vehicle safety but also with the fair practices of businesses in the industry. In most jurisdictions, licenses are required for each and every player in the industry, from manufacturers, distributors, and lessors to representatives, salespersons, and technicians. Applications for these automotive industry business licenses are often tedious and require extensive supporting documentation.

Errors and deficiencies in an application are likely to cause considerable delay in the issuance of your automotive industry license. LicenseLogix will help you navigate through these cumbersome requirements and ensure that your business is licensed to be up and running as soon as possible.

Background

The majority of states issue automotive industry licenses through their Departments of Transportation or Departments of Motor Vehicles. The first step is to determine which classification(s) your business falls into so that you may ascertain the appropriate application to submit to the authority. In addition to submitting the completed application form and correct fee, countless attachments and documentation are generally required. This may include a surety bond, proof of insurance, photographs, sample contracts, sample brochures, warranty information, fingerprints, financial statements, credit reports, or course certification.

Application fees may range from less than $100 to well over $1,000, depending on the automotive industry license type and state. To remain in compliance with industry regulations, each business must maintain its license by keeping up with renewals. In some states, this may be as simple as remitting payment, while in other states, further documentation may be requested.

Ramifications of Non-Compliance

An automotive business operating without the proper license (or with an expired license) may be subject to both civil and criminal fines, imprisonment, and/or an injunction.

How we help your business:

  1. We provide comprehensive research regarding the proper application to be filed for your particular business, as well as any additional requirements that may be necessary.
  2. We complete automotive industry license applications efficiently and correctly, allowing your in-house staff to save valuable time struggling to obtain the proper licenses.
  3. Once your license has been issued, we ensure that you remain compliant with all automotive industry licensing laws.

More Resources:

- National Automobile Dealers Association
- Automotive Service Association


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