General Question

autohelp23's avatar

Would my business violate Florida's auto dealer statutes?

Asked by autohelp23 (1points) July 9th, 2012

My state is Florida. The relevant statute is http://www.flsenate.gov/laws/statutes/2011/320.27

The statute states that a motor vehicle dealer is any “person engaged in selling of motor vehicles….. any person selling three or more motor vehicles in a calendar year shall be prima face engaged in such business”.

I own a mechanic shop. I occasionally buy my customer’s older cars fix them and either use them, give them to family, or sell them. What if a licensed business engages in such a practice, as in the cars are titled to the business? Since the statutes mention nothing about businesses would a business be able to sell over three cars per year? Since the business is an entity independent of the person would it’s car sales count toward that of the person since the person is only limited to three per year. Would the business have to be formed as a corporation so it is a true independent entity?

I’m sure that other businesses such as plumbers have sold more than three vehicles per year when they upgrade their fleet.

Thanks in advance.

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7 Answers

autohelp23's avatar

I reread the statutes and it defines a “person” as a corporation, firm, partership, or business. What if I formed corporation 1, sold my three vehicles, formed corporation 2, sold it’s three vehicles, .....

Since they are different corporations would this be a viable option?

Tropical_Willie's avatar

In this day of computer databases and state looking for revenue ( FINES ) you are cooked and may lose your license to work on vehicles. Do you have a back-up plan?

autohelp23's avatar

Im just wondering if it’s illegal to do this. I don’t want to do it illegally. I would think seperate entities are separate entities. Are you a lawyer?

WestRiverrat's avatar

Once you start trying to circumvent the laws, you are engaging in unethical, if not illegal activity.

If you were my mechanic and I saw this, you wouldn’t be for long. If you are willing to go to that much trouble to avoid paying a little extra tax every year, what shortcuts are you taking when you ‘fix’ my car?

Tropical_Willie's avatar

@autohelp23 I’m not a lawyer but a friend of mine ( not in Florida ) had a visit a couple years ago, after selling more cars than the state he lived in would allow. The statute is what it is, get a GOOD lawyer. And if you decide to incorporate, tell the lawyer what you plan on doing.

autohelp23's avatar

@Tropical_Willie Did they tell him to stop, fine him, or take him to court?

@WestRiverrat – It’s not to avoid tax. I’de be paying more in taxes and fees this route. It’s all the bond, insurance, and zoning requirements.

Tropical_Willie's avatar

@autohelp23 The state reported him to the town, ZONING issues, it was a residential area, state fined him and town hit him for zoning violation. Get the bond and insurance and make sure it is ZONED for retail car sales.

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