Kentucky Auction License

Actually, whenever you have to conduct any trade-related job as a dealer or auctioneer, you are to obtain a Kentucky Auction License. Moreover, if you want to start your own company, you have to have a Business Permit as well.

In fact, the licensing process is not that hard. You just need to follow some basic steps and have ready your paperwork. so, let’s check out what to do.

Determine the Type of License You Require

• Dealership for New Vehicles
• Dealer in Used Automobiles
• Vehicle Leasing Company

Obtain a Permanent Business Address

To meet the auction licensing standards for your company location, complete the following:

• Provide documentation that you own or rent a well-established business with a 2,000-square-foot display lot and customer parking area.

Also, the established place of business’s address indicates the specific location and includes a mailbox.

• Include images of your permanent business sign, front, back, left front, and right front of the lot as well as the outside and inside of the office space.
• Include floor plans for the sales office, car display/storage space, and dealership sign.

Also, automotive recycling merchants must get zoning officials’ certification. That declaring that the company site is legally compatible. Obviously, They get permission from the state Department of Highways to operate a salvage and recycling yard.

Gather the Required Documents for Kentucky Auction License

Obtaining a permit entails completing all of the state’s standards. Submit the following documents:

• A current financial report.
• Register your business name with the Department of Revenue. The name should reflect the type of dealership operations you are involved in.
• A sole proprietorship, corporation, or partnership gets an Assumed Name Certificate. Companies with limited liability can present a copy of their Articles of Organization.

Also, you will require an Employer Identification Number (EIN) from the IRS.

• The franchise agreement with the manufacturer of the automobiles you want to sell.

Garage liability insurance coverage amounts to $250000 per person.

$500000 per incident, and $250000 for property damage. Restricted/mobility sellers are required to have $1 million in garage liability insurance.

Restricted recycling dealers can have a minimum net worth of $100000.

Also, all applicants acquire a salesperson permit for all salespersons and owners.

Surety Bond for Kentucky Auction License

You must have a guarantee to obtain it. The Commission determines the amount of that. The price ranges from $15000 to $100000. If considered essential, they may force auctioneers to receive a higher sum.

The cost is determined by your financial situation. It is a minor portion of the entire value. The lower the bond price, the better your personal credit and corporate finances.

If you want to obtain a free bond quotation for it, fill out an online form. It only takes 5 minutes to lock in your pricing for the next 90 days (in case you want to purchase).

Fill Out and Submit Your Dealer License Application

Finally, complete the licensing application. If you desire a paper application, send the Commission a $7 check or money order made payable to the State Treasurer.

Fee: pay the following costs to start your dealership:

• Application fee of $40
• A salesman permit costs $20
• $20 criminal background check for salespeople
• An annual licensing fee of $100

In addition, mail your request to

Kentucky Motor Vehicle Commission
105 Sea Hero Road
Suite 1 Frankfort, Kentucky 40601

Note, that every second Friday of the month, the Commission meets. If you want your request to be considered at the next meeting, you must submit it at least 10 working days in advance.