Tag Archives: Georgia

The A-B-C of Auto Dealership Business Startup in Georgia

When it comes to licensing and state regulations for opening a new business, many people get a headache only by thinking about the complicated process. This certainly holds true for starting an auto dealership business in the U.S., but the entrepreneurial spirit is more important than the bureaucratic steps. Below are outlined the crucial steps of the licensing, and following them would make your life much easier if you are on a quest to open your dealership in the state of Georgia.

 

The State of Georgia Map
The State of Georgia – Map by Nations Online

Let’s start with A

In the State of Georgia, the licensing process is quite different for dealers of new or of used cars, so it does make a big difference what kind of cars you choose to sell in your new business.

In case you would like to deal with new cars, the State of Georgia allows such activity as a franchise of a car manufacturing company, which means that you would have to settle your new car dealership arrangements directly with them. If you manage to do that, you would be able to sell old cars as well – quite an unusual scenario, specific for Georgia. In this case, you have to obtain only a specific business license for the state, as well as register with the Motor Vehicle Division of the Georgia Department of Revenue.

If you are going to concentrate only on selling used cars, then you need to obtain a license from the Georgia State Board of Registration of Used Motor Vehicle Dealers.  First of all, you have to complete the set of application documents. You also need to ensure you meet a few important requirements like a set office location for your operations, as well as a business phone number. The non-refundable application fee is $170 and you need to pay it to the Used Motor Vehicle Dealer Board. Another important step is obtaining Sales Tax Identification Number for your business. This is processed by the Georgia Department of Revenue.

 

Moving on to B

Besides getting insurance for your auto dealership, there is also a requirement to get an auto dealer surety bond that guarantees your compliance with the Georgia state regulations. Unlike the insurance, which protects your business, the surety bond is a protection for your clients and the state in which you are operating, as it guarantees you will follow all state regulations. Obtaining such bonding occurs through using the services of a surety bond agency. Thus, instead of paying the whole bond amount, you need to pay a premium of the guarantee provided, which is only a percentage of the surety bond amount. Of course, before paying your insurance and surety bond, make sure that you meet all the other requirements of the Georgia State Board of Registration of Used Motor Vehicle Dealers.

what is a surety bond
What Is a Surety Bond? [Video]

C for Completed

When you mail your completed application and pay all necessary fees, insurances and surety bonds, you are likely to wait about three weeks to receive your licensing.  You need to renew your auto dealership license every two years – and you should not forget that the licenses are valid until end of March of each year. Although the process of registration and licensing your used cars dealership involves all these administrative steps and costs, it surely is manageable – and hopefully the tips here are of help.

Lowering the Surety Bond Price for Your Mortgage Brokering License in Georgia: Mission Possible

Driver Training School BondIt is not uncommon these days for mortgage brokers in Georgia to look for ways to save on administrative costs and insurances, especially when opening a new business in the current economic climate. When it comes down to a surety bond for obtaining a mortgage broker license, people usually think that the high costs cannot be avoided and that the bond premium is unchangeable. It turns out there are options for reducing the surety bond price and meet successfully this requirement for your license – it is only a matter of getting enough information and using the right surety bond agency.

 

How is the surety bond price estimated?

The bond premium is formulated as a percentage of the surety bond amount. Usually when surety bond agencies are looking at a mortgage broker surety bond application, they need to consider a variety of factors in order to make a judgment on the financial stability of the applicant. This is due to their smaller scale of operations, which involves higher risks with every client. That is why they need to take into consideration factors like personal and business financials and professional experience, along with the personal credit score, of course. As the surety bond for your mortgage brokering business is actually a form of credit given to you, the agencies often need to assess your financial status in a comprehensive manner. That said, this cautious approach on their side often leads to higher bonding costs, even if it is only one of your stats that has been evaluated as risky.

Mortgage license bonds cost in Georgia
How to get a lower surety bond price when obtaining your license [Video]

What makes the lower price possible?

The aforementioned process may sound rather rigid and it may seem as though it is imposing a high cost on the start of your mortgage brokering business, especially if your financial and professional situation has not been perfect lately. Then comes the solution: there are possibilities to lower the amount of the surety bond premium that you would have to pay during the licensing. This is feasible only if you turn to a large scale surety bond agency because their way of operation is different, relying on strength in numbers. That is why some agencies need to consider only your personal credit score, which saves you the trouble of improving multiple factors. The only one you have to take care of is the personal credit score – and you are ready for saving on the surety bond price.  You can even get an estimate online or submit your application and get a quote immediately.

 

The requirement to get bonded

Actually, many people are not clear on why they need such a surety bond when licensing their mortgage broker business in Georgia. As in most states, obtaining a surety bond is a legal requirement in order to get a license to operate as a mortgage broker. The surety bond is not insurance for your own business and its aim is not to protect you – there are other tools for that. Instead, it actually provides a guarantee to the state and to your clients that you will abide by the legal framework of the state. The process of licensing goes through the Georgia Department of Banking and Finance, and you still have to make your registration in the Nationwide Mortgage Licensing System (NMLS), where your Georgia application will be reviewed.

It is useful also to note that the surety bonds needed for obtaining a mortgage broker license are different from mortgage bonds. While the latter ones are investment bonds ensuring protection for investors and substantiated by real estate or other property, the former ones aim at guaranteeing that a mortgage broker will abide by the law in the state of Georgia.

Georgia Driver Training Schools Need Bigger Bonds

Driver Training School Bond
Driver training schools in Georgia already need a surety bond to become licensed; now they need a bigger bond thanks to a new bill. The new bill is named HB 269 and quadruples the bond required of driver training schools to $10,000. The bond is meant to guarantee the school’s compliance with State laws.

Georgia Continuing Care Facility Bond


The bond required of Georgia continuing care facilities now guarantees something new thanks to a new law. The new law is named SB 166 and states that the bond serves as financial assurance to guarantee the contractual obligations of the continuing care provider to the facility’s residents instead of just guaranteeing compliance with regulations alone.

Georgia Public Official Bond


The state of Georgia has enacted a new law affecting the Georgia Department of Transportation. The new law, which is named HB 137, terminates the $500,000 surety bond previously required of the Director of Planning for the Georgia Department of Transportation. The previous legislation set the bond requirement in order to guarantee that the responsibilities would be met by the Director of Planning.

Proposed Georgia Pharmacy Benefit Manager Bond


Georgia pharmacy benefit managers may be affected by new rules that were recently presented. The Georgia Office of the Insurance Commissioner suggested a new law enacted under SB 310 (2010) that requires pharmacy benefit managers to obtain a $100,000 surety bond from a state licensed surety company. Additionally, a minimum $250,000 errors and omissions insurance policy or “other appropriate liability insurance” is required. The surety bond protects individuals doing business with pharmacy benefit managers from fraudulent dealings. The surety has the option of canceling the bond with 30 days written notice.