Wholesale car dealers sell cars to dealerships.
If you're knowledgeable about cars and are eager to start your own business, consider starting a wholesale car business. Wholesale car dealers sell cars directly to dealerships. In South Carolina, wholesale car dealers must be licensed by the Department of Motor Vehicles, and must register their business as a limited liability company or LLC. If you plan to sell more than five vehicles to dealerships during the year, then you must apply for a wholesale license. Once you establish your wholesale car dealership in South Carolina, you'll be able to sell an unlimited number of cars to licensed dealerships throughout the state.
Instructions
1. Complete and submit Form DLA-1. In order to legally establish your wholesale car dealership, you'll need to complete and submit Form DLA-1, "Application for a Dealer or Wholesaler License," to the South Carolina Department of Motor Vehicles. Form DLA-1 can be downloaded from the South Carolina Department of Motor Vehicles website.
2. Complete and submit Form DLA-1B. Form DLA-1B, "Motor Vehicle Dealer and Wholesaler Surety Bond," must be completed and submitted to the South Carolina Department of Motor Vehicles. This form is also available for download on the South Carolina Department of Motor Vehicles website. You must also secure a $30,000 surety bond from a licensed surety company, which must be signed by you and an agent of the company. Send an original copy of the bond along with your completed Form DLA-1B.
3. File Articles of Incorporation. After completing and submitting the aforementioned paperwork, you must file Articles of Incorporation paperwork with the South Carolina Secretary of State's office, in order to establish a Limited Liability Company.
4. Pass inspection. An agent from the South Carolina Department of Motor Vehicles will review all of your business paperwork, to ensure that you can legally operate as a wholesale car dealer.
Tags: South Carolina, Department Motor, Department Motor Vehicles, Motor Vehicles, Carolina Department