Alabama Auction License

The Revenue Department which is located in Montgomery issues all the Alabama auction licenses in this state. First of all, you need to apply for it online as the department stopped accepting applications by mail. Don’t worry the process is quite easy. You just need to follow the steps described below.

Steps for Alabama Auction License

As we said above, the process is starting with filling in the online application. So, go to the official state website and just click on the “Register” button and start the process. However, if you have problems filling it in the same website, you are going to find the instruction and help.

Also, if there are additional questions, you can easily connect to the board by email: at [email protected] or by phone at (334) 353-7827.

In addition, you have to reapply every year as all the permits are valid till the 30th of September.

In the application, you have to use the valid address of your dealership and the legal business name. Additionally, you need to declare the type of your company. It can be a corporation, partnership, LLC, LLP, or an individual. All these types have different tax and legal consequences. So, make sure to ask for a piece of advice prior to choosing your company type. You may connect to the Secretary’s Office of the Alabama state by phone at (334) 242-5324 if you have any questions about launching your business in this state.

There is one more step to do before filling out the application. You should choose one of these types according to what you want to do. Here they are; vehicles, wholesalers, dealers, or reconditioned licenses.

Also, be sure to provide a correct email after completing the online request. This is very important as all the mail about the process deadlines and so on will come to this address.

Fees

Finally, the last step is the payment. After finishing applying electronically, you have to pay $10 for your initial place and then $5 for other additional locations. After this, you must send all the docs to the Revenue Department by mail.

Make sure to include the receipt of payment to the docs. Secondly, send it in one huge envelope, do not separate them. For the title, you can just write Packet for Alabama Auction Application.

You may also learn about the fees for a Kansas auction license.

The Number for Tax Identification

The only business type that does not need this is individual. If your organization category is different from this, then you should read this carefully. All organizations should have this number. It is free.

This also requires an application, so go to the website and fill it out.

State Tax Number for Sales

In case you request a new or used motor-vehicle certificate, you also have to apply for this number of taxes. You can simply apply for this by just going to the Revenue Department website.

Insurance for Auction Garage

Before obtaining the permit, the board requires to buy the policy for insurance. You must get this from the authorized warranty agent. However, not all agents sell it. So, to easily find it, just connect to the insurance company.

The Revenue Department mandates a $75,000 combined single maximum for bodily accident/injury and a $50,000 combination accident/injury. For property accident/damage, it is $25,000.

To prove that you have it, you should include the auction insurance copy in your documentation packet.

Surety bond

One more requirement for all applicants is to have this bond. There are some differences. For example, the dealer for a new vehicle needs to have a $25,000 bond, but used car dealers must have only $10,000. Mostly, you may get this from any insurance or bonding corporation.

The price is different and it is connected with your score of credit. If your score is good for the first bond, the annual price will be $200. But, if your score has some blemishes, the annual price is going to be higher.

Remember that if your bond for some reason is canceled, the board will repel your certificate, too.

Get the Privilege Certificate

As the state desires to know about every business operating inside its borders, it requires each firm to obtain a Privilege Permit. The License Commissioner and Probate Judge issue this certificate. Check the law of the city in which you plan to operate your dealership. You may need to have a local business permit as well.

Also, you may find out your specific rates by contacting your County Permit Commissioner, which is determined by a variety of variables, including your region population.

Business Photo

This may sound incorrect or suspicious but the board needs to see what your company area looks like. So, it is necessary to include this in your docs. These photos will be attached to the file with all the docs. So, it should be a maximum of 8×10 inches.

You should submit the electronic photos in a way that they are clear. In case you do not send even one document, your processes will be delayed for 5-7 weeks. Also, if your organization has more locations, include the photos of all of them.

Here is the mail address where you must send your documents.

Alabama Department of Revenue
MVD Division Licenses
327643 PO Box
36132-7643 Alabama, Montgomery