Utah Auction License

Generally, becoming an auto dealer brings several issues to be solved immediately. So getting dealer permission is one of those issues. First, let’s determine who is a dealer and what duties he has. A trader is a person who buys and resells new or used motor vehicles through bidding.

To conduct it legally a Utah auction license comes for help. This article will guide you through the steps you are going to pass through for obtaining one.

Choose your preferred Utah auction license type

An auctioneer certificate is a kind of permission, which aims to let you run your trader corporation without breaking the law. It has four types, and each of them has its specific purpose. Those are:

• Recent motor vehicle/large trailer
• Old motor vehicle
• New motorcycle and small trailer
• Used motorcycle and small trailer

In fact, it is the Motor Vehicle Enforcement Division (MVED) that issues them. Once you determine your preferred type, you can apply for it.

Note: You do not need this certificate, if you tend to sell or exchange machines, you have owned for more than 12 months.

Company registration

This is your next step. When starting your work you should have its name approved, register it, and get your FEIN (Federal Employer Identification Number) and Sale Tax number. The FEIN is for your business registry, and you also need it when hiring employees. You are to register your company through the portal of Utah One Stop Online Business Registration.

For this purpose, you should settle the $22-$52 non-refundable filing fee. Alongside with registry make sure to apply for your Sale Tax number.

Everlasting work location

This is also an important part of your dealership. As a trader, you should have a location that will meet the following requirements:

• Be an office structure for storing files and records
• Not have any other business there
• Meet the zoning requirements
• Have an abiding sign of 24 sq ft, which aims to show the full licensing name of your trade
• Have a display lot for at least 3 vehicles

Take an 8-hour Pre-licensing course

This is your next step. As a beginner, you should take these either online or in person. Below you can find contact information with the MVED Utah:

• Telephone- 435-764-1737
• Email- [email protected]
• Website- mvedutah.com

You ought to pay $99 for this course.

Complete your application

Once you have finished your licensing course successfully you can send your application with the documentation attachments to the MVED. The documents are:

• An owner’s passport-type photo
• A business location photo with a visible dealership sign
• Sales Tax license proof
• FBI fingerprint card
• Your plate insurance declaration page copy
• Your franchise agreement copy

Get your surety bond

This is one of the most important steps in this licensure process. Moreover, it serves as a guarantee for a trader to deal with customers honestly. Here are the bond amounts you should know:

• $75.000- new or used machine or trailer dealers
• $10.000- motorcycle or small trailer dealers

Fortunately, you do not need to pay the whole amount of your surety bond. You just need to pay the percentage of it, which is 0.5%-10%. This instability depends on the license type you choose. It also depends on your credit score. If it is good, you should pay less in premiums, and if it is bad, your annual premiums will go up.

Required fees for Utah auction license

Besides the bond amount, you should also pay the required fees. They are as follows:

• $127- new/used vehicle trader certificate
• $51- new or used motorcycle
• $12- dealers plate
• $20 – fingerprinting

Note: Once your application is rejected, you are to be paid back, as these fees are refundable.

Pass an inspection

After completing your application, an agent should come to your business location for inspection between 5 and 10 days. Once your dealership passes this inspection successfully, you will get your Utah auction permit within 3 and 5 working days.

Renew your permit

In Utah state, all the auction licenses are valid for up to a year. Thus, if you want to continue your legal work, here your certificate renewal is mandatory. For this purpose, you are to take an annual renewal training course, which costs $45.

After completing this course you will get your renewed certificate, which is verified by the MVED. If there are any questions remaining, you can contact the MVED at 801-297-2600.

To summarize, for working legally as an auctioneer you need nothing, but an auction permit. After obtaining one, you can enjoy your rewarding job. As it is in other states like California.