Starting a business as a Travel Trailer Dealer can be a rewarding venture, tapping into the growing market of recreational vehicles and outdoor enthusiasts. However, it’s crucial to understand the legal requirements and steps involved in obtaining the necessary licenses. This guide provides a detailed walkthrough of how to become a licensed travel trailer dealer, ensuring you comply with all regulations and set your business up for success.
Who Needs a Travel Trailer Dealer License?
In most jurisdictions, including Washington State where this information is based, you need a dealer license if you intend to engage in the business of buying and selling travel trailers, park trailers, manufactured homes, and non-motorized mobile homes. Specifically, a license is required if you plan to:
- Sell more than a limited number of personal trailers (typically more than 4) within a 12-month period.
- Buy and sell trailers with the primary intention of making a profit.
- Sell trailers that are not registered under your name.
Operating without the correct license can lead to legal repercussions, so understanding these stipulations is the first step in establishing your travel trailer dealership legally.
Steps to Obtain Your Travel Trailer Dealer License
The process to become a licensed travel trailer dealer generally involves several key steps, designed to ensure you meet business operation standards and legal compliance. While specific requirements may vary by location, the following steps offer a general framework based on the provided information:
1. Secure a Compliant Business Site
Your dealership’s physical location is a critical component of the licensing process. It needs to meet specific criteria to be approved. These typically include:
Zoning and Legal Compliance
Ensure your chosen location adheres to all local building codes, zoning laws, and land-use ordinances. Contact your city or county authorities to verify compliance and obtain any necessary permits before proceeding.
Building Specifications
A commercial property with an enclosed building is usually mandatory. This physical space serves as your primary business location.
Signage
You must install a permanent exterior sign clearly displaying your business name and the nature of your business (e.g., “Travel Trailer Sales”). This sign should be visible to the public.
Communication Systems
Maintain a working phone line listed in directory assistance. While a mobile number might be acceptable, ensure it’s officially listed for business contact.
Operating Hours
Establish consistent business hours, typically a minimum of 10 a.m. to 4 p.m., five days a week. You have the flexibility to extend these hours to better serve your customers.
Record Keeping Area
Designate a dedicated space within your business for storing and managing essential business records, books, and files. If you share premises with another vehicle dealer, ensure your business operations, inventory, and record-keeping are physically separate and clearly demarcated.
2. Assemble Required Documents
Completing the application process requires gathering and submitting specific documents. While the exact forms may vary, expect to prepare the following:
Application Forms
Complete the official application forms for a manufactured home and travel trailer dealer license. These forms are crucial for initiating your licensing request.
Surety Bond
Obtain a surety bond, often in the amount of $30,000. This bond acts as a financial guarantee, protecting customers and the state. You can acquire a bond through an insurance or bonding company. Ensure the principal name on the bond matches your business owner and firm name precisely. Both you and an attorney-in-fact from the bonding company must sign the bond form.
Financial Statement
Provide a financial statement detailing your financial standing. The requirements differ based on your business structure:
- Sole Proprietorship or Partnership: Each individual proprietor or partner must submit a separate financial statement.
- Corporation, LLC, or LLP: Submit a single financial statement that outlines the assets and liabilities of the business entity itself.
3. Utilize a Pre-Application Checklist
Before submitting your formal application, use a dealer checklist (if provided by your licensing authority) to double-check that you have completed all necessary steps and gathered all required documentation. This pre-application review can prevent delays and ensure a smoother licensing process.
4. Submit Your Application and Fees
Once you have compiled all documents and completed the checklist, you need to submit your application along with the applicable license and plate fees. Typically, you have options for submission:
Online Application
Applying online is often the fastest method. Visit the Department of Revenue’s website or the relevant licensing authority’s online portal to submit your application and pay fees electronically.
Application by Mail
Alternatively, you can mail your completed forms, along with a check or money order for the fees (payable to the Department of Revenue or relevant authority), to the designated mailing address.
Post-Licensing Requirements
After successfully obtaining your travel trailer dealer license, your responsibilities continue. You must:
- Display Your License: Prominently display your dealer license at each of your business locations.
- Establish E-Permits Account: Create an account for issuing and managing temporary permits, which are often necessary for vehicle sales.
- Register for Vehicle Registration Information Access: Sign up for services that allow you to access vehicle registration information, essential for dealer operations.
Temporary Permits for Events
If you occasionally participate in car shows or similar events and require a short-term permit, you can apply for a temporary sub-agency permit. This involves submitting a specific application form and paying a temporary sub-agency fee.
Keeping Your License Current
It’s crucial to keep your dealer license information up-to-date. If your business address changes, promptly notify the licensing authority to update your license details and maintain compliance.
Conclusion
Becoming a licensed travel trailer dealer involves a structured process, but by carefully following these steps, you can navigate the requirements successfully. Ensure you understand the specific regulations in your operating area and maintain ongoing compliance to build a thriving and legally sound travel trailer dealership. This guide provides a solid foundation for embarking on your journey in the travel trailer industry.
