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Rhode Island Auction License

Rhode Island Auction License

Every person who is eager to start a career in this industry must get a certification. That means that the Rhode Island Auction License is obligatory if you sell 4 or more vehicles yearly. The Department of Revenue, Division of Motor Vehicles (DMV) is the governmental institution that issues it.

However, before starting to speak about the steps, let us make a distinction between auction and auctioneer. The former is an individual, corporation, partnership, and/or even association that engages in auctioning. In other words, they sell motor vehicles exclusively to traders in wholesale transactions. In contrast, the latter is an individual who sells automobiles for another person. It is usually for compensation or on commission.

Step-by-step process

Business establishment

First of all, establish your business with its name and permanent location. Make sure to register it in other governmental departments wherever it is necessary. Then prove your ownership. But remember:

All auto dealership names have to include an “auto sale” component in them.
Your building space must be a minimum of 2400 sq. ft.
The outside lot area should be at least 2400 sq. ft.
A working telephone number should operate in the building.
The dealers have to display a sign or lettering at a visible spot with the dealership’s name. The sign minimum size ought to be 24 square feet.
Also, they need to keep a shop equipped with the necessary tools. It is for maintaining automobiles and performing repairs.

Once you finish the first stage and find a place to operate contact the office at 401-462-5733 for further info.

Approval

Secondly, get approved by the DLRO (Dealers’ License & Regulation Office). This is absolutely vital because pre-certification approval is required. After receiving the pre-application the Office investigates your request and approves or disapproves.

Application for Rhode Island Auction License

Only now you do have to complete the dealership application. Together with that, present the following:

Signed and notarized balance sheet and financial statement. The statement is to be prepared by a certified public accountant.
List of employees and their driver’s permits.
Proof of an approved credit for $50,000 from a financial institution.
RI auto surety bond. The required amount is $50,000.
Either a signed and notarized copy of the lease agreement that mentions the building and lot area has been rented for a minimum of one year or proof of property ownership.
Criminal background check or BCI (Bureau of Criminal Identification) authorization for every owner, corporate, or partner. The entity that issues those forms is the RI Attorney General’s Office.
Four photos of the outdoor part from all angles with the entire building and lot.
A letter of zoning approval notice or city/town license if applicable.
Articles of incorporation (for corporations).
A letter of intent. It has to be from the manufacturers/distributors (for franchise dealers).

Finally, the Dealer’s Hearing Board evaluates your paperwork. When everything is ready submit the package to the following address specified at the end of the article.

Finalization of the request

Upon the receipt of the above documents, an investigation will start. After that, the DLRO will schedule a Hearing. If you are approved after this appointment next you have 30 days to meet the other requirements.

Contact the Aide at (401) 462-5732. Then request the assigned permit and plate number.
Subsequently, contact the Division of Taxation for blue forms and sales tax permits.
Next, submit a picture of your business sign in the proper size.
Prove the fee payment of $302.50.
Reveal your entrepreneurial phone number.
Provide dealer plate insurance coverage proof.
Last, but not least, deliver a blank Bill of Sale form for DLRO approval.

Transfer

Like it is in Massachusetts, you can also transfer your permit from one state to the other. Just do it by completing the proper petition and attaching the supporting documents. Then address it to the DMV.