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Florida - Becoming a Used Boat Dealer

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Florida - Becoming a Used Boat Dealer

Old 11-07-2012, 06:51 PM
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Question Florida - Becoming a Used Boat Dealer

I am sorry if this post is misplaced or inappropriate all together,
I just thought I'd ask hoping there's a simple answer.

Say I want to be a used boat dealer in Florida renting a storage
garage big enough for say five 25 footers at a time. I've established
my Subchapter S corporation and have my sales tax number and
my federal tax number and opened a commercial bank account.

What other mandatory things must I obtain or do to be "officially
good to go". Like buying a boat and NOT needing to pay tax on it
but having it titled in my corporation name, then selling it when I
get the right offer.

I thought I'd ask here before I consulted a lawyer and CPA. I know
I have to but I just want to be prepared in case they start jerking me
around. I'd really appreciate it if some one who knows the truth (like
another used boat dealer) could just post a straight forward list.
Thanks so much guys!

JACK

Last edited by AdvenJack; 11-08-2012 at 01:49 AM.
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Old 11-07-2012, 07:01 PM
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Good question, I have been wondering what all it takes myself.
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Old 11-07-2012, 08:10 PM
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County and city licenses.
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Old 11-07-2012, 08:12 PM
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good luck - have you done a projected income and expense done?

and how many months of cash supply do you have?
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Old 11-07-2012, 08:19 PM
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Loking for some boats?
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Old 11-07-2012, 08:58 PM
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The question is where are you going to buy.. If you want to buy from florida auctions your gonna need to get a vehicle dealers license. You can then register with auctions. A dealer license requires, a 16 hour dmv class, a lease on property, a dmv inspection and approval of site, insurance policy, a bond, fingerprinting, a $300 filing fee.
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Old 11-08-2012, 12:54 AM
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To SIMPLEANSWER,

Thanks much for your post regarding AUCTION buying, (and selling
I'll assume, perhaps erroneously?).

JACK

Last edited by AdvenJack; 11-08-2012 at 01:06 AM.
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Old 11-08-2012, 12:56 AM
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ALL the above are appreciated! Let's say to start off,
no auctions. Just buying and selling to and from private
individuals and other dealers.

JACK

Last edited by AdvenJack; 11-08-2012 at 01:07 AM.
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Old 11-08-2012, 01:12 AM
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To GLEN E,

1- No, first trying to learn my legal requirements
2- If I have to sell off all boats held, and stop leasing a location,
and still keep my status as a "legal" used boat dealer, I am
guessing I'll be able to sustain the costs as long as I care to. But
right now I don't know and I am seeking to.
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Old 11-08-2012, 01:18 AM
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To FISHINGBUDDY,

Who gave you authorization to post a pic of the boats that I am now holding?????
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Old 11-08-2012, 03:43 AM
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You'll usually only need a single business license for the county you'll be operating out of (at least that's the way my license works, I'm set up as a manufacturer of fishing equipment - and everything else flows from that single license...). Everything else, tax number, etc, will only come after the business license.... At any rate that's the way it is in Broward county.... but you'll also have to be aware of whether your location is zoned for the activity you're planning..
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Old 11-08-2012, 03:56 AM
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Originally Posted by AdvenJack View Post
I am sorry if this post is misplaced or inappropriate all together,
I just thought I'd ask hoping there's a simple answer.

Say I want to be a used boat dealer in Florida renting a storage
garage big enough for say five 25 footers at a time. I've established
my Subchapter S corporation and have my sales tax number and
my federal tax number and opened a commercial bank account.

What other mandatory things must I obtain or do to be "officially
good to go". Like buying a boat and NOT needing to pay tax on it
but having it titled in my corporation name, then selling it when I
get the right offer.

I thought I'd ask here before I consulted a lawyer and CPA. I know
I have to but I just want to be prepared in case they start jerking me
around. I'd really appreciate it if some one who knows the truth (like
another used boat dealer) could just post a straight forward list.
Thanks so much guys!

JACK
I'm a CPA in Florida and frequent this forum a lot. Once you have your sales tax number, your resale certificate should be mailed to you. If you have any other questions, shoot me a message or email to cpa.bsullivan@gmail.com
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Old 11-08-2012, 05:13 AM
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Alot of $! Used to be a saying, "How do you make a million dollars in the boat business, start with two million"

Hire a marine tech to inspect EVERYTHING before you buy. One bad transom, floor, fuel tank or delamination issue you miss, will cost you ALL your profit made on the last 5 boats you bought and sold.

Or just hire a guy like me to run your store. You check in from time to time to collect your cash, I'll deal with the daily headaches! I eat the losses, you benifit from the profits! 5K sign on, 5K per month, 25% NP and you can have me!!!
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Old 11-08-2012, 05:46 AM
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First of all you definetaly need a motor vehicle dealer license. I f you don't want to go through the hassel of that you will not be legal. I am a licensed motor vehicle dealer and if you want to talk about it, we can. Perhaps we can work through my license. I am set up for a to z on selling cars or boats. I have city and county licenses.
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Old 11-08-2012, 05:49 AM
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Simpleanswer is steering you in the right direction. As a business you need to get your independent dealers license(VI). Florida now lets you do it online so you don't actually have to go to a real class.

I don't know how many boats you plan to sell a month but you should really look at getting some type of dealer software to do the DMV paperwork, homeland security check, etc. I have Wayne Reaves and it's worth the small monthly charge. You will have to find a temp tag service to transfer plates and temp tags for the trailers. I use ADD123 but there are a few others.
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Old 11-08-2012, 06:10 AM
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Ans. is Yes you do need a State Dealers Lic.
buy a couple & try out your idea 1st. make sure it's what you think it is. I know alot of people that have tried, Very Few have made alot of money, most do it for the love of doing what they like. (Kinda)

If you make money doing what you love to do, then you'll never work a day in your life...
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Old 11-08-2012, 09:47 AM
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I think propbender got his boats this way. Bought and flipped fountains, pm him and see if he would share how he did it.
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Old 11-08-2012, 10:08 AM
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If it is the same as starting a used car dealership, it must be very very easy to do in Florida.
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Old 11-08-2012, 10:32 AM
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I work in a different industry, however I would assume that the manner in which you handle goods which go into your merchandise (in your case boats) is essentially the same.

My firm manufactures industrial heat transfer equipment. We have a sales tax exemption certificate (and ID number) which exempts us from sales tax on the merchandise purchased in order to build our product. Therefore, if we purchase raw steel (which is used to make our product) then we are exempt from paying sales tax on the steel. The end user who purchases our goods pays for sales tax on the item (unless they are a vendor who is re-selling it again - in that case they provide us with their sales tax exemption form and we do not have to collect tax from them).

In a nutshell, I would expect that you would need to obtain some sort of sales tax exemption certificate from the state of Florida which exempts you from paying sales tax on the items you are effectively re-selling. As a boat dealer you will be responsible for collecting and forwarding to the state the sales tax on the boats from the customers you sell them to.

I hope this helps. Best of luck to you!!
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Old 11-08-2012, 11:15 AM
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Do you really need all this?

Do you actually pay or charge sales tax as an individual buying and selling used equipment to private parties?
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