Legal compliance is important for any business owner to be aware of and consider when opening a new dealership. There are many types of compliance, such as ensuring the staff is medically cleared, providing safe working conditions, and keeping track of your inventory. When you are ready to open your dealership, here are ways to prepare it for legal compliance:
Make Use Of Motor Vehicle Dealer Bonds
Many dealerships’ most common legal compliance is utilizing a motor vehicle dealer bond. MVD bonds are surety used to ensure the dealer complies with state and federal regulations. These bonds can protect you against many possibilities, such as fraudulent activity, maintaining proper licensing, selling only legal vehicles, and taking care of your customers.
In addition, the bonds can be customized to fit your dealerships, such as covering additional vehicles outside of the dealership or additional employees. There are many resources available when it comes to providing a proper surety bond assessment for your dealership.
Understand The Laws
It is essential to understand the laws set in place for your business. Each state has laws regarding dealer licensing, vehicle sales, and more. Knowing these laws before opening your dealership is important so that you do not run into any issues with them during the start-up process. A few laws to be aware of are titling laws, which dictate who can sell vehicles and what information needs to be present on a vehicle’s title. Additionally, you will need to understand licensing laws, which cover the type of license needed and how to obtain one. To ensure your business is properly covered by these laws, get a motor vehicle dealer bond that conforms to your state’s requirements.
Conduct An Inspection
Before opening your doors, ensure the dealership is up to code and follows state laws. Pre-opening inspections are a great way to ensure this happens, and many organizations offer these services at an affordable cost. Involving an independent expert can make all the difference before you open your doors, as they can check all aspects of your dealership, such as inventory tracking, finances, and more. They can also recommend fixing any problems that may arise once the dealership opens. Additionally, these experts will be able to inform you of any laws you may not have been aware of, which can save you from issues later on.
Hire The Right Staff
Having the right staff is essential to running a successful business. Using a designated employer is one way to ensure these requirements are met. A designated employer will check all applicants’ licenses, criminal background checks, and eligibility for employment in your state. This specialist can also ensure that your staff is medically cleared, an important requirement in many states. A designated employer can help you get started on the right path of having legal staff and preventing any issues with employment later on. Therefore, it is important to use a designated employer, as there may not be enough time or staff to do this on your own.
Get A Lawyer
It is important to consult a lawyer to prepare your dealership for legal compliance. This professional will be able to go over important business laws, such as sales regulations and licensing, that your dealership must follow. In addition, they can inform you of any laws you didn’t know about and suggest how to make changes to your business. Also, they can inform you of the necessary steps to get started in the industry and what type of insurance is needed for running a dealership. So, it is important to have a lawyer on your team from the start, as they will be able to help you get in line with the laws and make suggestions that will benefit your business.
Legal compliance is important in opening a dealership, as it allows you and your business to operate smoothly. When you have the right staff members, a good insurance plan, and knowledge of the laws in place for your dealership, you can run your business more successfully for years to come. So, when your dealership is ready to open, ensure that you are in line with state and federal regulations to stay out of trouble. Also, get a motor vehicle dealer bond that meets all your state requirements to be prepared for legal compliance.
