Dealers License
Ok,
Question??? How much does a Dealers License cost in GA if that matters? and Where or how do you go about getting one?
I believe I am going to be moving far to many Mobile Homes to not need a Dealers License... so any help is appreciated.
Mark
Check with the Georgia Bureau of Motor Vehicles. In Ohio they have a wesite with downloadable forms and applications. Most states require a physical business location with the capability to hol MH's as well as sufficient office space, specific business hours, etc...
If you are doing business ala "Lonnie" style, this is probably unneccessary. As long as you take legal title and pay the requisite transfer fee's, you shouldn't be in violation of any state laws although you should check out your own state specific statutes.
Your biggest problem is going to be in the tax arena. (Taxjunkie, if you're out there we could use your expertise on this) When you sell a Mobile home (as a dealer in the eyes of the IRS) you must pay income tax on the full profit, whether or not that full income is received. A tax attorney on another site is very aggressive on this issue and has some recommendations. As a car dealer, which uses titles just like MH's, We set up an RFC (Related Finance Company). Then when you sell the MH, you take back a prommissory note and in turn sell that note at discount to your RFC. Your RFC services the note and reports the income stream accordingly.
DISCLAIMER- I am not an Attorney or an Accountant and any information disseminated here shall be construed as legal advise or tax advise.
Great question.
[addsig]
In Florida, to get a Dealer License, you have to fill out the forms to apply for the license. You also need to have a business location where the representative can view the premises to make sure you have sufficient space to hold/show the vehicles/MH. They have to approve of the business location as part of the application process. There are all sorts of requirements involved. Make sure you read the Department of Motor Vehicles laws in your state before applying for the Dealer license.
Tanya
I'm glad I'm out in VA with Lonnie!
He uses a C corp and has the dealers license.
Future,
So what are the requirements for operating in VA? Is a dealership required to rent homes? How about opening a park?
Thanks,
[addsig]
$500 fee one time fee. After that it will run you about $300 per year (off the top of my head) to renew your dealer and sales license.
You will then be able to assign title and you won't pay sales tax when you buy. In a few deals, this savings alone will pay for the license and recovery fee.
But remember, you can do up to 4 deals (as I recall) in a 12 month period without a license. Get your feet wet first, then worry about the license.
Supposedly there is little enforcement in VA
Hey Mark,
How did that deal come together you were working on in Jan.?
Future MH investor.
Kelly