Las Vegas Secondhand Dealer Bond: A Comprehensive Guide
At a Glance:
- Average Cost: $100 per year or $10 per month
- Bond Amount: Determined on a case-by-case basis (more on this later)
- Who Needs it: All secondhand dealers operating in Las Vegas, Nevada
- Purpose: To protect the public from financial harm if the secondhand dealer violates the terms of their license
- Who Regulates Secondhand Dealers in Las Vegas: The Las Vegas Business Licensing Division
Background
Las Vegas Code of Ordinances 6.74.030 requires all secondhand dealers operating in the city to obtain a privileged business license from the city’s Business Licensing Division. The Las Vegas City Council enacted the licensing requirement to ensure that secondhand dealers engage in ethical business practices. To provide financial security for the enforcement of the licensing law, secondhand dealers must purchase and maintain a surety bond to be eligible for a license.
What is the Purpose of the Las Vegas Secondhand Dealer Bond?
Las Vegas requires secondhand dealers to purchase a surety bond as part of the application process to obtain a privileged business license. The bond protects the public from financial harm if the secondhand dealer fails to comply with the regulations set forth in Las Vegas Code of Ordinances 6.74.090. Specifically, the bond protects the public if the secondhand dealer engages in any acts of fraud, breaches any consumer contracts, or fails to provide all goods that have been paid for. In short, the bond is a type of insurance that protects the public if the secondhand dealer violates the terms of their license.
How Can an Insurance Agent Obtain a Las Vegas Secondhand Dealer Surety Bond?
BondExchange makes obtaining a Las Vegas Secondhand Dealer surety bond easy. Simply login to your account and use our keyword search to find the “Secondhand Dealer” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
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How is the Bond Amount Determined?
The Las Vegas Business Licensing Division has the authority to determine the required bond amount on a case-by-case basis. The division will inform secondhand dealers of their required bond amount after reviewing their license application. Contact the Las Vegas Business Licensing Division for further information.
Is a Credit Check Required for the Las Vegas Secondhand Dealer Bond?
No, a credit check is not required for the Las Vegas Secondhand Dealer bond. Because the bond is considered relatively low risk, the same low rate is offered to all secondhand dealers in the city regardless of their credit history.
How Much Does the Las Vegas Secondhand Dealer Bond Cost?
The Las Vegas Secondhand Dealer bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Bond?
Las Vegas requires secondhand dealers to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Las Vegas Code of Ordinances 6.74.020, a secondhand dealer is a person engaged in the business of buying, selling, or trading scrap metal or secondhand personal property for the purpose of reselling or exchanging the property.
Exemptions to this definition include:
- Licensed dealers of used vehicles
- Licensed pawnbrokers
- Sales of used books, newspapers, and periodicals
- Sales of coins which are not a part of any jewelry
- Conventions or trade shows lasting less than 14 days
- Items acquired in trade-ins
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How Do Secondhand Dealers Apply for a License in Las Vegas?
Secondhand dealers in Las Vegas must navigate several steps to obtain a license. Below are the general guidelines, but applicants refer to the application checklist or the licensing statutes for details on the process.
License Period – All Las Vegas Secondhand Dealer Licenses expire six months from the date of issuance and must be renewed before the expiration date.
Step 1 – Determined the Class of License
Las Vegas requires secondhand dealers to obtain a specific license class based on the type of goods sold, as outlined below:
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- Class I-A (Salvage): Dealers who dismantle or scrap used vehicles to sell the disassembled parts and accessories, and dealers who sell salvaged lumber, junk, and metal (except precious metal and scrap metal)
- Class I-B (Vehicle Parts Only): Dealers who sell parts and accessories of used vehicles who do not dismantle or scrap the vehicle
- Class I-C (Scrap Metal/Combination): Dealers who sell scrap metal either exclusively or in combination with other materials under Class I-A and I-B
- Class II (Furniture and General Used Goods): Dealers of furniture, fixtures, appliances, tableware, office supplies, pictures, paintings, jewelry, cutlery, guns, or other secondhand articles except those which fall within Class I
- Class III (Precious Metals/Stones): Dealers who deal exclusively in precious metals, stones, or other articles made of precious metals
Contact the Business Licensing Division for assistance in determining the specific license class needed.
Step 2 – Gather All Necessary Documents
Secondhand dealers are required to submit several documents with their license application. A full list of these documents can be found in the application checklist and all applicants must submit:
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- Las Vegas Business License Application
- Financial Questionnaire
- Responsible Party Acknowledgement Notice
- Personal History Form completed by the dealer
- Driver’s license or state-issued identification of the dealer
- One 2” x 2” passport-size photo of the dealer within the last six months
Step 3 – Schedule an Appointment
All Las Vegas Secondhand Dealer License applications can only be taken by appointment. To make an appointment, dealers should contact the Business Licensing Division by phone at (704) 229-6281. The division will walk the applicant through the application process, answer any questions they may have, and ensure they have submitted all required application forms. Applicants will also be required to pay various fees, such as:
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- Initial Processing Fee: $100
- Semi-Annual License Fee: $100
- LVMPD Background Check Fee: $150 per person being investigated
- Privilege License Fee: $200 per financial investigation
- Notary Fee: $5 per stamp
Step 4 – Purchase a Surety Bond
Secondhand dealers must purchase and maintain a surety bond prior to being issued a license. After submitting an application, the Business Licensing Division will contact the dealer to determine the required bond amount needed.
How do Las Vegas Secondhand Dealers Renew Their Licenses?
To renew their license, secondhand dealers must pay a $100 semi-annual renewal fee online here. Dealers will receive a renewal notice by mail or e-mail prior to the license expiration date. All Las Vegas Secondhand Dealer Licenses are valid for six months from the date of issuance and must be renewed before the expiration date.
What are the Insurance Requirements for Las Vegas Secondhand Dealers?
Las Vegas does not require secondhand dealers to purchase any form of liability insurance. However, brokers may need to obtain insurance as a prerequisite to obtaining a state business license. Secondhand dealers must purchase and maintain a surety bond.
How Do Las Vegas Secondhand Dealers File Their Bonds?
Secondhand dealers should mail their completed bond forms, including the power of attorney, to the Las Vegas City Hall at the following address:
Business Licensing Division
495 South Main Street
Las Vegas, NV 89101
The bond requires signatures from both the surety company that issues the bond and the applicant. The surety company should include the following information on the bond form:
- Legal name of the entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Date the bond is signed and goes into effect
What Can Las Vegas Secondhand Dealers do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bonds, secondhand dealers in Las Vegas must ensure that they:
- Do not engage in any acts of fraud
- Faithfully honor all consumer contracts
- Provide all goods that have been paid for
What Other Insurance Products Can Agents Offer Secondhand Dealers in Las Vegas?
Most reputable secondhand dealers will purchase liability insurance. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Las Vegas Secondhand Dealer Customers?
Las Vegas conveniently provides a public database to search for active secondhand dealers in the city. The database can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
