Travel Agencies – What’s new in 2017?

2017 is set to be an exciting year for travel agencies.  Each day we receive more requests from individuals looking to start an agency and obtain the required surety bonds.  These requests range from do you need a license, how much it costs to get it, and how long the licensing process takes.  While the type of questions aren’t an important indicator of the industry, the number of questions are important.  In general, the more requests for information we receive; the higher the perceived interest in the travel agent industry.  A higher level of interest often leads to a higher number of new agencies opening their doors.

Online or Brick and Mortar?

Overall, we’re seeing less brick and mortar agencies compared to online storefronts.  New agencies are forgoing the brick and mortar locations to keep costs down in the first year of operations.  This allows a new travel agency to avoid pricey multiyear lease commitments for a physical store location.  These savings are often used for website development and online advertising such as Google Adwords.  Once established, these online businesses often lease a small office to accommodate new agents or support staff.  However, almost all of the new applicants we see are operating out of their home initially until they become profitable.

We’re seeing a decline in the large brick and mortar locations which once dominated the industry.  The cost of these locations, usually in high visibility areas, are outweighing their effectiveness.  Online sales continue to put pressure on margins which are quickly failing to justify the building’s cost.  Many of these agencies are moving their employees to less visible and less expensive office locations.  They’re primarily meant to house support staff and agents for large travel agencies.

Foreign Travel Agencies

We continue to see an uptick in the number of non-US based travel agencies register for seller of travel licenses.  In most cases, these foreign agencies are well established in their home country and looking to expand into the US.  However, as they expand, most of them are utilizing specialty lawyers to help with licensing.

Travel Agent Regulation

The regulatory environment for travel agencies remains stable.  While most states don’t have a licensing requirement in place, some like Florida and California require all sellers of travel to register.  In many cases, these states also require travel agency bonds.  These surety bonds are meant to protect clients of the agency from financial harm.  For example: A bond could reimburse a client if the travel agency takes his or her money and does not provide the travel package.  While not all states require registration, it’s important to contact your state to ensure you’re not breaking the law.  In some cases, simply offering travel related services without a license to people living in a state can trigger fines.

What can you expect going forward?

You should expect to see continued competition in the travel industry.  Low barriers to entry and ease of opening a new travel agency will continue to foster new business creation in the space.  Additionally, the lack of state regulation makes it easier than ever to open an agency within a few weeks.

What is a Texas Dealer License?

A Texas dealer license is easy to get for your business.  You need a car dealer license in Texas if you are selling, buying, or exchanging cars.  The state provides the license to each dealer and sometimes refers to it as a GDN or general distinguishing number.  The license allows you to act as a car dealer legally within the state.  Additionally, it’s how you can get dealer plates.

Who needs a Texas Dealer License?

Anyone selling, trading, or buying 5 or more cars, trailers, and motorcycles as a business needs a dealer license in Texas.  A person who is only buying a car does not need one.  However, if that person buys multiple vehicles to resell them at a later date, he or she would need to be a licensed dealer.  This is because that person is engaging in a practice which is consistent with a car dealership.

How do I get a Texas Dealer License?

Here are the steps to get your Texas car dealer license:

1. Determine your license type – (The listing below contains only licenses which require a GDN)
   1. Motor Vehicle – Used vehicles only.
   2. Motorcycle – Used motorcycles and ATV’s only.
   3. Travel Trailer (Towable RV’s) – Used travel trailers only.
   4. Utility or Semi Trailer – New and used utility or travel trailers only.
   5. Wholesale – Can only sell wholesale to other licensed dealers.  No retail sales.
   6. Wholesale Auction – Allows you to sell vehicles at auction.
   7. Mobility Vehicle – Vehicles equipped to transport disabled persons only.
   8. Franchise – New cars only
2. Complete the Independent Dealer Application
3. Get a Texas Dealer Surety Bond
4. Send your completed application and attachments to the Texas DMV
   1. By faxing all documents to the DMV at 512-465-4190
   2. Or mailing all documents to the DMV at Texas DMV, Motor Vehicle Division, PO Box 26487, Austin, TX 78755
5. Pay the Texas Dealer License Fee

The state will then process what you sent them.  It will be approved or denied based on the information they received.  If your application is missing something, you’ll get a chance to give the state any missing information.  The fastest way to get your license is to make sure you provide the DMV with everything listed in the application.

How long does it take to get a Texas Dealer License?

The average time for approval is 2-3 weeks once the state receives your dealer application.  However, if your application is incomplete, you’ll receive a letter from the state asking for what’s missing or a correction to one of the documents.  Any missing information will slow down your approval.

How long is my license good for?

A Texas dealers license is good for 2 years from the time it’s approved.  The license term begins on the first day of the month and ends on the last day of prior month two years later.  For example:  Your license term might begin on November 1st, 2020 and end on October 31st, 2022.

Do all Texas license types need a surety bond?

No, not all licenses require a surety bond.  Those dealers selling travel, utility, or semi trailers do not need to post a bond.  However, all other independent dealers need to post a $50,000 surety bond.  You can obtain one by applying for it online.

Who doesn’t need a license to sell vehicles in Texas?

There are a few exceptions to the rules when it comes to licensing.  You do not need a license if:

• You sell less than five cars per year which are registered in your name only;
• You’re a local, state, or federal agency;
• You sell a vehicle in which you have a security interest (forced sale);
• You’re an insurance company;
• You’re a court appointed representative;
• You’re selling an antique car/truck over 25 years old; or
• You’re selling a special interest vehicle.

What if I want to sell used cars and trailers?

You’ll need to complete an application for both license types.  Each license type has its own GDN.  Remember, GDN stands for general distinguishing number.  This number identifies your license type and location of your dealership.  You can’t legally perform activities of another type of license if you haven’t obtained that license type.

Back to the Surety Bond Learning Center

What is a Surety Bond?

A surety bond is a product that protects the consumer or government against harm caused by you or your company.  There are thousands of bond types and each one protects something different.  Some protect against fraud and others guarantee performance.  Listed below are a few common surety bond types:

• License Bonds – used by businesses who require state licensing.
• Contractor Bonds – used by contractors for licensing.
• Performance Bonds – used by contractors who perform public projects.  Sometimes called contract bonds.
• Court Bonds – used by courts for certain court proceedings.

Each bond type also comes with a specific form.  The form normally lists the three parties to the bond which are:

• The principal – typically you or your company.
• The obligee – the person or entity who benefits from the surety bond.
• The surety – the insurance company who issued the bond.

Bond forms and contracts establish a connection between the three parties.  The surety backs the principal.  The principal agrees to follow the obligee’s rules.  If not, the surety pays the obligee for their loss.  This surety bond definition is broad but also a good place to start when learning about them.

Why do I need a Bond?

You may need a bond for a lot of reasons but we usually find it’s because you’re applying for a state license.  State’s often require them to protect its consumers from harm caused by violating certain industry rules.  For example: You buy a vacation package from a travel agency.  The travel agency then takes your money but doesn’t book your travel.  In certain cases, you may be eligible to make a claim on the travel agency’s bond.  Some states like Florida and California have travel agent bonds which can reimburse you if the travel agency cannot.

If you’re a contractor, the chances are that you’ve already heard of bonds.  Construction companies of all shapes and sizes will most likely need one at some point.  Many states require contractor license bonds to ensure fines and fees are paid.  Local governments require bid and performance bonds to perform public construction work.  Towns and counties may also require code compliance bonds for registered contractors.

Lastly, you may need a court bond if you’re involved in a court case.  Probate cases, lien releases, and injunctions often require them to protect an individual or entity from harm.  Probate bonds protect a person’s estate while lien release bonds protect the person who filed the lien.

What does a Surety Bond Cost?

License and permit bond cost depends primarily on your personal credit score. The higher your score; the lower the cost. In general, individuals and businesses with excellent credit can expect to pay 1-3% of the bond amount needed. For example: A $10,000 surety bond would cost $100-$300 annually. Individuals and businesses with bad credit can expect to pay a higher cost ranging from 5-10% of the bond amount. For example: The cost would increase from our previous example to $500-$1,500. Other factors which determine how much a surety bond costs are the type of risk, bond form language, amount of time in business, and the duration of the risk.

Payment and performance bond cost works a little differently than those mentioned in the previous paragraph.  They require surety companies to review your credit and work history a little closer.  Additionally, the job size assists in determining your total bond rate or cost.  Larger projects generally cost more in terms of total premium but are cheaper in terms of overall rate.

How do I apply for a Surety Bond?

1. Complete our online Surety Bond application, or
2. Download and complete our printable Surety Bond application, and
3. Receive your surety bond quote in minutes!

Apply now

Is a Surety Bond insurance?

No, 99% of bonds are not insurance.  Surety insurance and surety bond insurance are generic terms given to bonds and are different in many ways.  The most apparent difference is the claims process.

Let’s say you’ve been involved in a minor fender bender.  Nobody was hurt and you weren’t at fault.  What happens?  The insurance company pays for your loss up to your policy limits less your deductible.  Your car gets fixed and that’s the last you hear of it.

Now let’s say someone has claimed against your bond.  What happens here?  The claim is usually investigated by the surety company once they are notified.  They obtain information from the claimant and the principal (you).  They determine you are at fault and ask you to satisfy the complaint.  However, let’s now say you can’t (or won’t) pay the bond claim.  The surety must then pay the claim on your behalf and will come back to the principal (you, your assets, etc.) to be reimbursed.

What is a Bond Claim?

A claim is an action taken to force your surety company to pay for harm cause by your company.  Claims can be both small and large.  However, claims can generally not be for more than the bond amount although it has happened in the past.  Bond claims are often paid by the surety company on you or your company’s behalf.  You and any other indemnitors must pay back the surety company for costs it incurs on your behalf.  This is known as indemnification.

Bond claims need to be avoided at all costs.  Claims often result in the revocation of your state or other license type.  Additionally, current and past claims make it very difficult to become bonded again.  If you’re a contractor, a claim could affect your ability to obtain state or federal contracts.

How do I get bonded?

Getting bonded is a fairly simple process.  Follow the steps below:

1. Determine which type and amount of bond you need;
2. Complete the online application;
3. Receive your quote;
4. Pay for it online or over the phone;
5. Receive an electronic copy in minutes.

The original copy of your bond will be sent to your address.  You will most likely need to sign it.  Additionally you must also send the original to the state, company, or whoever is requiring the original bond from you.

View our surety bonds by state!

What does a surety bond cost?

The cost of a surety bond depends mainly upon your personal credit score. The higher your score; the lower your cost. The price of your surety bond or rate should be in between 1-3% of the total bond amount needed. To put this in perspective, a 1-3% rate would mean a $10,000 surety bond costs between $100-$300 annually.

Conversely, if you have bad credit or a low credit score, the surety bond cost will be higher. Your surety bond cost should be in between 5-10% of your surety bond amount. The same $10,000 surety bond amount used in our previous example would be $500-$1,000 for individuals with bad credit. Luckily DBL Surety has a bad credit program which allows us to place bonds for individuals regardless of credit score.

How do I lower my surety bond cost?

As mentioned above, your bond cost is primarily based on your personal credit score.  However, there are other items which can lower your premium.  The most important of these factors is prior experience and length of time in business.  These two items can reduce your bond cost as compared to a brand new business owner without experience.

For surety bonds greater than $100,000, your company’s financial statements can also assist in lowering your bond premium.  Companies with appropriate cash balances, positive working capital, and sufficient net worth will help lower your bond rate.  In some cases, your cost can be less than 1% of the bond amount needed!  Additionally, higher quality financials prepared by a certified public accountant can further reduce your rate.

How do surety companies view my credit score?

Each surety company may use a different credit reporting company to view your credit score.  Some use Experian while others may use TransUnion or Equifax.  Each credit reporting company reports a different score based on your credit history.  However, these credit reports are considered “soft pulls” and are different from those “hard pulls” which affect your credit score.  A surety company will look not only at your credit score but also the information contained on the report.  They will often put more weight on late pays and past due amounts relating to credit cards than they would past due medical expenses or student loans.  You can always request a copy of your credit score by contacting the credit reporting company used by the surety company.

How do I apply for a surety bond?

Applying for a surety bond has never been easier and is the only way to determine your exact surety bond cost.  DBL Surety utilizes an online surety bond application which allows you to apply online.  For your convenience, we also offer a fill-in-the-blank Adobe PDF surety bond application which can be printed and returned to us via fax or email.

I know my surety bond cost so what’s next?

All you have to do is let DBL Surety know you’re ready to purchase your bond and we take care of the rest. You’ll receive an invoice for the amount quoted and most likely another document called an indemnity agreement. This is a legally binding agreement which is required by the particular surety company who will write your bond. Please read it carefully, sign where indicated, and return the agreement to us via email or fax. The bond can be released as soon as both the payment and signed agreement are received.

How long will it take me to receive my surety bond?

Most bonds are issued the same day that both payment and the agreement are received. We pick up the tab for normal shipping but also offer expediting shipping because we understand time is of the essence in some cases. Let your surety bond representative know if you would like your bond expedited and we’ll provide you with a tracking number so you can follow your surety bond while in transit to your address.

Learn more about what is a surety bond!

Do I need both the ARC and state Travel Agency Bonds?

In most cases, yes, you’ll need both types for your travel agency bonds.  This is true because each surety bond generally covers a different type of obligation and benefits a different party.  For example: The ARC surety bond benefits the Airlines Reporting Corporation only.  However, your state required bond can benefit an individual, business, or the state government.

Why do I need both travel agency bonds?

As mentioned above, both bonds are needed because they offer protection to two different obligees.  Obligees are the people or entities who can claim on your bond for wrongdoing.  A claim is what happens when you violate the terms of your state license or agreement with ARC.  Generally, claims on travel agent bonds involve the non-payment of money owed to an entity/individual or fraud committed by your agency.

When don’t I need a surety bond for my travel agency?

You don’t need a surety bond for your travel agency if your state doesn’t require it for registration.  Additionally, the ARC bond isn’t needed if you don’t do business with the Airlines Reporting Corporation.  Please view our list of Seller of Travel Bonds or call your state to determine if you need a bond.

Can my state Travel Agent Bond be waived if I have an ARC bond?

Currently, Florida allows a travel agency to eliminate their Florida Travel Agent Bond if they maintain an ARC Surety Bond for 3 continuous years.

How much are Travel Agent Bonds?

The cost of your travel agency’s bonds depends primarily on the owner’s credit score.  Other items like experience, length of time in business, and claims activity can also affect your bond premium.  Normally, applicants with excellent credit can expect to pay about 1-2% of the bond amount needed.  For example: A $20,000 ARC Surety Bond would cost between $200 and $400 annually for those with excellent credit.  The cost of your surety bond will increase as your credit score declines.

How do I apply for a Travel Agency Bond?

1. Complete our online Travel Agency Bond application, or
2. Download and complete our printable Travel Agency Bond application, and
3. Receive your surety bond quote in minutes!

Apply now

How long does it take to get a Travel Agency Bond?

The entire process from application to issuance could take less than 30 minutes.  Once approved, all we need is a signed agreement and form of payment for your travel agent bond.  Your bond will then be issued and an electronic copy sent to your email address.  The original copy can be sent to your address for next day delivery.

Who is the ARC?

ARC stands for Airlines Reporting Corporation.  It was founded in 1984 and processes settlements for buyers and sellers of airline tickets.  The ARC provides settlement transactions for travel services such as airline tickets.  Think of the ARC as the PayPal for airline ticket transactions.  Your agency must pursue ARC accreditation before obtaining your ARC number.  Travel agency accreditation allows your agency to directly issue airline tickets.

Who should become an ARC agent?

Any agency who wishes to issue airline tickets directly should obtain ARC accreditation.  Generally, most large travel agencies seek ARC accreditation to better serve their clients.  Your agency should have a high volume of air travel customers due to the cost of applying.  Startup agencies can also benefit from the other tools available through the ARC.

What is a Verified Travel Consultant?

A Verified Travel Consultant or VTC is a travel agency who cannot issue airline tickets directly to its customers.    However, the VTC designation allows your agency to obtain an ARC number.  An ARC number is important as it is widely recognized within the travel industry.  The number lets your agency work with ARC’s suppliers and access to the its other helpful tools.

How much does the ARC application cost?

Your cost will depend on which program you decide to pursue with the ARC.  The application and annual fees are listed below:

• Accredited ARC Agent – $2,000 initial application fee and a $210 annual fee (Note: your first year’s fee is included in you application fee);
• Verified Travel Consultant – $105 initial application fee and a $195 annual fee.

As you can see, the costs to apply are much different.  The VTC route is obviously the less expensive of the two and gives you access to ARC carriers.  It does not allow you to directly issue airline tickets to your clients.  Additionally, while the initial cost of accreditation is high, the long term benefits may outweigh the cost.  Your ability to issue tickets to clients on demand is more efficient and sometimes the difference between winning a large account or losing it.

How do I get accredited with the ARC?

Listed below is a step by step guide to become accredited with the Airlines Reporting Corporation.

• Your first step is to create an online account with the ARC.
• Next you will need to complete the application sections.  Some of these will already be finished using the information used when creating your account.
• You must enter your travel agency’s business structure, tax ID number, and business name on file with the IRS.
• Have you decided if your agency will be an e-ticket agency only or will you issue paper plane tickets?  You must make this selection under the office classification section of the ARC application.
• Ownership Structure:  Each company owner’s name, ownership type, and ownership % must be entered.
• Licenses and Permits:  Some states require travel agencies to register for a license.  For example, Florida requires a travel agency license before any agency can offer to sell travel to residents in the state.  If your business is located in one of these states you must provide a copy of your state license or registration to the ARC.
• You will need to designate someone to be the MyARC administrator.  This person will be able to monitor all activity done within the ARC system.
• Document Retrieval Administrator and Security Manager:  You need to designate someone as the document retrieval administrator and security manager.  These positions allow access to roughly three years of the travel agency’s ticketing data.
• Your agency must designate someone as qualifying person for each agency location.  This person can be your ARC specialist or Management Qualifier.
• Bank Account Information:  You must provide your agency’s bank account information to the ARC.  This information is needed to process deposits and payments to and from the ARC.  Additionally, you will need to provide the name and email of each person who has access to your bank account.
• Certification:  The applicant must certify he or she is authorized to submit the application and agree to all the ARC’s certifications and agreements.
• All supporting documents and materials will need uploaded to the ARC website.  Additionally, you can physically mail the materials.  See below for a list of required materials.
• Please click on the “Submit Request” button in MyARC to submit your application and related information to ARC.

What materials do I need to give the ARC?

The Airlines Reporting Corporation needs the following documents to process your application:

• Bank signature card;
• Business license (if required in your state);
• Certification;
• Financial instrument;
  • $20,000 ARC Surety Bond; or
  • $20,000 irrevocable letter of credit; or
  • $20,000 cash deposit;
• W9 or IRS Letter; and
• Memo of agreement.

Most of these forms can be found within the MyARC application website.  A copy of your bank signature card can be obtained from your bank.  Your business license (if any) can usually be printed from your state’s seller of travel department website.

You can learn more about the financial instrument requirement by visiting our ARC surety bond page.

How long will it take to receive my ARC accreditation?

Your approval time depends on a few factors.  These factors include the current workload of ARC application processors, completeness and accuracy of the required information, and method of submitting the required materials.  A faster processing time can be accomplished by uploading the required materials to the MyARC website as opposed to mailing physical copies directly to the ARC.  Also, it’s important that you submit your application prior to 31 days after it’s started.  Applications older than 31 days which have not been submitted are deleted and the process must be started over.

Other helpful ARC information

Main Office
Airlines Reporting Corporation
3000 Wilson Boulevard, Suite 300
Arlington, VA 22201-3862
Phone: 703-816-8000
Fax: 703-816-8104

Application Questions
Phone: 703-816-8085
Fax: 703-816-8086
Email: adm@arccorp.com

Website: www.arccorp.com

Find out what is a surety bond.

How to get a Colorado Dealer License

A Colorado dealer license is mandatory to sell cars and powersports vehicles in Colorado.  The state regulates the dealer industry through Title 12, Article 6 of the Colorado Revised Statutes.  These statutes set the rules for your dealership and its salespeople along with providing guidance for licensing procedures.  The information below will help you get your dealer license.

What are the Colorado Dealer License requirements?

You must meet three initial requirements to apply for you Colorado dealer license:

• Minimum $100,000 in personal net worth.  Net worth = Total Assets (Cash, homes, cars, and other property) – Total Liabilities (Mortgages, loans, and other debt).
• Minimum Experian credit score of 701.  If uncertain of your credit score, please run it before applying with the Colorado Department of Revenue.
• Pass a background check or be able to provide documentation for felony and misdemeanor crimes which you have been found guilty or pled no contest.  Certain felony crimes will automatically disqualify your application.

If you meet the three requirements mentioned above, you’ll need to provide additional information to continue the licensing process.

Colorado Dealer License Checklist

Listed below are items you’ll need to get your Colorado dealer license:

• State application 2109 – This is a one page form which gives the most basic information about your dealership.
• License fee – Colorado charges a fee depending on your license.  First time licenses cost $519.  A list of fees can be found here.
• Additional owner form 2109B – This form is required for each additional owner of the dealership.
• Pre-licensing Education Cert – Dealers who have not held a license in the past three years must take a pre-licensing class.
• Mastery Exam Affidavit – Owners and partners must pass the exam and provide the passing certificate to the Department of Revenue.
• Surety Bond – You will need to purchase a Colorado Dealer Bond and provide a copy to the state.  The bond must be in the amount of $50,000.  You can apply for the bond by clicking here.
• ID – Each owner will need to provide a valid government issued ID.
• Form DR 4679 – Each owner will need to provide a Restrictions on Public Benefits affidavit.
• Form DR 2114 – Each owner must provide a financial statement to prove the $100,000 net worth requirement mentioned above.
• Business Plan – A written plan for your business is required.
• Form DR 2044 – Place of business affidavit
• Location Photographs – You’ll need to provide pictures of your dealership’s signs, entrances, buildings, and bathrooms.
• Sales Tax License – You can apply for a sales tax number here.
• Lease – A copy of your building lease.

In addition to the information above, you will also need to provide the following if you are applying as an LLC, corporation, or partnership:

• A copy of your bylaws, operating agreement, or partnership agreement.
• A copy of your articles of organization (LLC), incorporation (C Corp), or similar document.
• Trade name (DBA) if any.

This information will be reviewed by the Colorado Motor Vehicle Dealer Board.

What is the CO Motor Vehicle Dealer Board?

The board is who ultimately approves your Colorado dealer license.  They will review your application and approve it, deny it, or ask for more information.  Additionally, they can also revoke or suspend your dealers license once it has been issued.

When will I know if my Colorado Dealers License is approved?

Your license will be approved only after the board approves your application.  You can follow up on the its status by calling the licensing department at 303-305-5604.  This is the main office number for the Auto Industry Division of the CO Department of Revenue.  Two other locations exist in Colorado Springs and Grand Junction.  Each location’s address is listed below.  You can also email the department at dor_dealers@state.co.us.

Main Office
1881 Pierce St. #112
Lakewood, CO 80214
Phone 303-205-5604

Colorado Springs Office
2447 N Union Blvd
Colorado Springs, CO 80909
Phone 719-594-8704

Grand Junction
623 Market St., G-3
Grand Junction, CO 81506
Phone 970-248-7175

Learn more about the Colorado Dealers Bond.

How to begin your Florida Dealer License Renewal

If you own a car dealership in Florida than you may be familiar with the Florida dealer license renewal process.  However, new businesses may not know how to renew their dealer license.  It’s important to understand the process because Florida, in particular, has mandatory renewal dates.  Missing a renewal date could result in the suspension of your license.

When do I need to renew my Florida Dealer License?

The answer depends on which dealer license type you have.  Florida has several classes of licenses which can be studied here.  There mandatory renewal dates are listed below:

• Franchise car dealers must renew their license by January 1st of each year.
• Mobile home and recreational dealers renew their licenses by October 1st of each year.
• Wholesale and used car dealers must renew their licenses by May 1st of each year.

A car lot may receive a cease and desist letter from the state if they do not renew their license in time.

What is the Florida Dealer License Renewal cost?

The cost to renew a Florida dealer license also depends on your license type:

• Franchise dealers: $75/year $100 delinquency fee if paid after 12/31
• Mobile home and recreational dealers: $140/year $200 delinquency fee if paid after 10/1
• Wholesale and used car dealers – $75/year $100 late fee if paid after 5/1

Additional location fees also apply if more than one dealership exists.

• Franchise dealers: $50/year for each additional location
• Mobile home and recreational dealers: $50/year for each additional location
• Wholesale and used car dealers: $50/year per each additional location

FL Dealer License Renewal Application instructions

First, you’ll need to download the application which can be found here.  This is required by Florida for dealer license renewals and changes of your dealership’s location.  The application will ask for your license number, address, FEID, and other items about your business.  You’ll need to enter this information on the application and sign at the bottom of the page.

Your renewal application then needs delivered to the state.  You may mail the application and required documents to your regional DMV office.  Additionally, you can hand deliver it to the regional office.

How long should I renew my dealers license?

The DMV allows dealers to renew their licenses for one and two year periods.  The renewal costs for the one year license terms are above.  The two year renewal cost would be twice the annual cost.  For example:  A used car dealer license renewal costs $75 per year.  A two year license renewal would cost $150.  You do not save money with the state on your two year dealer license renewal.  However, you can save money by renewing your dealer bond and other services for two years.  Most surety companies will offer some sort of a discount for prepaying your two year bond premium.  Additionally, other services may also discount their fees if their services are purchased in bulk.

Also, you can learn how to get your Florida dealers license.

Certified Contractors vs. Registered Contractors – What’s the Difference?

We’ve all heard the age old adage about making sure a contractor is bonded, insured, and licensed.  But did you know in many states there are two classes of contractor licenses?  Most people don’t know the difference between a certified contractor and a registered contractor.  That’s what we’ll describe below.

What is a Certified Contractor?

A certified contractor license allows the contractor to work anywhere within the state in which they are licensed.  They’ve typically sat through and passed a state exam and adhered to fingerprinting requirements.  They maintain certain levels of insurance and have shown they are financially responsible.

What is a Registered Contractor?

A registered contractor license does not allow the contractor to work anywhere in the state.  Registered contractors have not completed the state exam and are required to register in each city or county in which they want to work.  However, registered contractors are still required to “register” with the state.  This means they must also meet fingerprinting, insurance, and financial stability requirements just like the certified contractor.

How can I tell if a contractor is registered or certified?

Most states, if not all, have an online contractor license directory.  The directory can be searched by consumers to determine the license type, its status, and other information.  Florida’s contractor license search system is perhaps one of the best in terms of ease of use and functionality.  You can search by license type, individual name, company name, and other criteria which make it easy for a homeowner or business to search for a contractor’s license.

Are Registered Contractors as good as Certified Contractors?

Registered contractors can be every bit as good or better than the best certified contractors.  Certified contractors can be every bit as bad or worse than the worst certified contractors.  The main difference between the the two license types is that the registered contractor didn’t take or complete the state exam.  However, they may have completed and passed an exam required by the city or town in which they work to receive their competency card.  This card shows that the contractor has met the requirements of the municipality who issued it and allows the contractor to work there.  The requirements often include specific limits of insurance, state registration, and surety bonds which protect the home or business owner.

Do you want help getting your contractors license?

The License Company helps individuals and businesses with professional licensing.  They’ve helped contractors around the country get licensed faster and easier than going it alone.  Click here to learn more about their services.

Learn more about the the contractor licensing requirements.

Alabama Dealer License Checklist

So what does it take to get an Alabama dealer license?  If you’ve reviewed the state’s website it may seem a little overwhelming but it’s really just a few keystrokes, a bond, and some mandatory insurance.  We’ve listed below the items needed for your AL dealer license along with some helpful explanations.

1. A registered account with Alabama’s MVTRIP Website
2. A name and address for your car dealership location – You must have a valid name and address to apply for your Alabama dealer license
3. Your license type – New, Used, or Wholesaler
4. Names and addresses for all owners
5. A credit card to pay for you dealer application fee
6. Your printed application from the MVTRIP website
7. An original Alabama car dealer bond in the amount of $25,000
8. Completed insurance certificate form
9. Photocopied pictures of the owner’s driver’s license
10. A picture of your lot signs and the entire lot itself.

Now that you know what you need it’s time to find out what each item is an why you need it.

Alabama’s MVTRIP Website Registration

You will need to create an account on the MVTRIP website to register for your car dealer’s license.  This website is your access point for all things related to your license.  It’s where you’ll insert most of the information on our checklist above and where you’ll visit when changes need to be made to your license.   The system is easy to use and a good access point for your dealer licensing information.

Car Dealership Name and Address

You’ll need your dealership’s name and address.  This information can always be changed but it’s helpful to finalize it prior to your license application.

Your Dealer License Type

There are three main types of AL dealer licenses for which you can apply.  They are:

• Alabama Used Car Dealer License
• Alabama New Car Dealer License
• Alabama Wholesale Car Dealer License

Each license type is explained in detail on our How to Get and Alabama Car Dealer License page.

Names and Addresses for All Owners

You will need the names and address for each owner or representative of the dealership.  Their information will be entered into the MVTRIP system during the registration process.

Credit Card Information

Most things in life these days aren’t free. Unfortunately, the same thing goes for your Alabama dealer license registration.  You will need to have your credit or debit card information ready when submitting your application to the state.

Your Printed Application from the MVTRIP Website

You must print your license application and physically mail it to the Alabama Department of Revenue.  We know, it sounds redundant but your Alabama dealer license won’t be considered for approval until they receive your printed, signed application.  Your application must be mailed to:

Alabama Department of Revenue
Motor Vehicle Division – Dealer Licenses
PO Box 327643
Montgomery, AL 36132-7643

Please remember to send your original, signed application to the address above or it will not be considered for approval.

Original Surety Bond

Alabama requires a $25,000 car dealer surety bond to obtain a dealers license.  These bonds protect your customers if you violate the statutes which govern the dealership industry.  You can learn more about the surety bond requirement by visiting our Alabama car dealer bond page.  Each bond should come with a power-of-attorney.

Insurance Forms

You are required to obtain and maintain basic garage liability insurance while licensed as a dealer.  Your insurance agent will need to complete and sign the insurance form provided by the MVTRIP website.  The form will list your insurer, coverage limits, and contact information.

Photocopies of Each Owner’s Driver’s License

Each owner of the dealer will need to provide a photocopy of their driver’s license or ID.  This is not required if you are renewing a license.

Lot and Sign Pictures

You will need to submit pictures of your lot and signage.  This is required only of new Alabama dealer license applicants.

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