City, county, state and or/federal, licenses or permits are
often required before entering a particular business or service
operation. Often, these are issued solely as a fund-raising
measure, and are therefore easy to obtain simply by submitting a
fee.
On the other hand, licensing is also used as a method of
regulating the competency of those entering a particular field
and to protect the public from shady operators. In some cases
and exam is administered, and moral and financial requirements
may need to be met as well.
In the used-car business, most states require that you obtain a
dealers license if you are buying and selling vehicles for the
purpose of making a profit. However, you are not required to
apply for a license if you only make an isolated or occasional
sale. You are not considered to be in the business of selling
motor vehicles in that event. "Isolated or occasional sales" in
many states means "the sale, purchase, or lease of not more than
five motor vehicles in a 12-month period.
Once you begin to sell more vehicles for profit that is allowed
by your state law on a annual basis, you should apply for a
Dealers' License by contacting your State department of Public
Safety Or Department of Motor Vehicle.
Check with your attorney or other city officials to determine
what licenses and permits are needed. Simply start up a business
without having the proper authorizations can result in severe
penalties, and you could be forced to discontinue operations.
Many states and some cities and counties, require that sales
taxes be collected. The state sales tax permit is available from
the State Department of Revenue. City and county permits are
available from the tax department in those jurisdictions.
Even though a certain amount of "red-tape" must be tolerated to
obtain some licenses and permits, this is usually a one-time
occurrence. Then, It's just a matter of simply submitting an
annual renewal fee.
