To start selling anything, you need a permit. Those willing to sell more than 3 cars a year in the Big Island, have to get it as well. So, let’s check the process to obtain a Hawaii auction license.
Once you enter Motor Vehicle Industry Licensing Board, it provides all details. In this article, we will sum up the information for this wishing to obtain a Hawaii auction license.
Before starting the process, choose a type of document. There are permits for new and used vehicle sellers.
Before applying it is better to look through the checklist. It points to all papers that you need to collect. The Board is likely to send back an incomplete form. Thus, be careful not to provide inaccurate data. The good news is that the handbook linked above will make it clear.
You can complete the information form online or type it and mail it to the Division. The form also contains some questions. It asks if:
There are some questions that ask more about your background. Their goal is to check if you were charged with unlicensed activity. If you faced charges or disciplinary actions, indicate it clearly.
Imagine you have filled in an auction license application. So, we can proceed to support documents. The long list of requirements also includes a self-inspection report. Here you present a sketch of the premises. It’s not an architectural document but rather a plan of the facility. Photos of the location are a must.
The next is showing facts about your business. You provide entity registration and a filed-stamp copy of the application to register a tradename. Likewise, there is a mandatory zoning compliance paper. It shows if the premises comply with regulations.
Other papers include:
The applicant, of course, has to have a solid financial background. A line of credit is mandatory. You have to get it from a federally insured financial institution. A financing source is also ok. The source must have a net worth of at least $50 million. A credit line must be $100,000.
The second option is a surety bond. In this case, the amount is $200,000. Make sure that the surety has the authorization to run business in Hawaii.
Check Hawaii Insurance License page if you want to learn more. It will help you to become an insurance agent in Hawaii.
When submitting a request, attach a check from U.S. financial institution. The amount depends on when you apply. The licensing year is between July 1 and June 1. It depends on if you apply in an even-numbered or an odd-numbered year. So, it can make either $978 or $514.
Keep your permit active and do not forget to renew it. The Board usually sends a notification. It comes around 6 weeks prior to the deadline.
Verification of permits is also available online and at no cost. You can search for the status, date, and other data.
You also have to inform the Board about changes in your business. This includes any details, for example, a change in the business name or office location.