This section provides a check-list and roadmap for starting your dealership, namely the paperwork expectations, and the place of business or service center inspection. As with starting any business, you must have your business name approved, register your business, get your FEIN and Utah Sale Tax number. Details of how to do this are below.
The Utah Tax Commission has a straightforward document, TC-300, that lists all of the steps to obtaining your dealer license. This section just explains some steps in more detail. If you have not already started, you will want to start “The Paper Chase” processes as soon as possible. Obviously, it may take time to get approved for a bond, complete construction on a dealership, or sign franchise agreements.
Here are a list of forms that are required for your dealer license, which are described in Form TC-300:
Note that MVED will not license dealers with similar names to avoid public confusion. Therefore, approve your name with them first. Then, your business name must be filed with the Department of Commerce before registering your business.
The following list are common reasons the administration denies, suspends, or revokes a license. Make sure you, your partners, and employees avoid these common mistakes:
After MVED receives your application, they will send someone for an on-site inspection, which is described in Part Two - The Location in TC-300. The inspection reviews whether the location and signage complies with all laws and zoning. Vehicle-related business may only take place at licensed locations.
* This takes five to ten working days after receiving the application. It will take a few days to receive your license after passing the location inspection.
The inspection must be done prior to receiving your license. It takes five to ten working days for the inspection. Then, if you pass the inspection, your dealer license will arrive within three to five working days.
The following are main features of the inspection as described by Utah code:
Make sure that your showrooms comply with the Americans With Disabilities Act (ADA). This was enacted in the 1990s and is common knowledge, so you likely already comply.
* Banners are only allowed if permanently affixed to the building or sign cemented into the ground.
Immediately contact MVED if you want an additional place of business, or if you change or lose your place of business. For each additional place of business, notify MVED and apply with Form TC-758. This location will also need an inspection. The sign, however, must include the address of the principal place of business. Used dealerships are required to have an office at the additional site and a separate bond.