Louisiana auto title companies transfer and record the sale, lease or mortgage of vehicles, mobile home, trailers and other motor vehicles. These companies contract with the Department of Public Safety of Louisiana. Auto title companies do not sell insurance or conduct any type of lending for motor vehicles. Starting an auto title company in Louisiana involves complying with the eligibility requirements of the Louisiana Department of Public Safety Office of Motor Vehicles.
Establish and maintain a place of business in Louisiana. The business must comply with all local zoning and occupational laws. Auto title companies service people looking for replacement tags and stickers, duplicate car titles and registrations, state transfer for new residents and assistance with other state registrations, so your business location is important. Choose sites that are easily accessible to public transportation, convenience stores, grocery stores or other highly frequented places of business to make getting a new auto title easy for those just moving to the area.
Submit a completed and notarized application from the Louisiana Department of Public Safety Office of Motor Vehicles for each location you plan to use as a title company. Each application must have the same business name. This will establish your business as a public tag agent for the Louisiana Office of Motor Vehicles and allow you to prepare title documents, notarize and register vehicle transfers for persons needing auto title services in Louisiana.
Set up a computer system for your business that has email capabilities. This is to ensure proper delivery of updates to auto title policies and procedures from the Office of Motor Vehicles. These updates will contain information on new laws, standards, requirements and business operation procedures for your auto title company. These updates will help keep you in compliance with the Office of Motor Vehicles and maintain your license.
Provide a copy of a surety bond you obtain from a Louisiana surety company in the amount of $10,000. The bond must name the Department of Public Safety and Corrections, Office of Motor Vehicles, as the obligee. The State of Louisiana requires all business owners to obtain a surety bond. During the surety bond application process, be prepared to provide financial history for both yourself and your business, as well as your credit rating.
Pay an annual fee of $200 for one business location and $50 for each additional site. Include this fee with your completed auto title company application. The check for the annual fee must be written from the business account. Pick up an application at the Planning and Development Department of the Office of Motor Vehicles in Baton Rouge, Louisiana.
Market your auto title company in Louisiana by joining your local Chamber of Commerce. Louisiana chambers offer a standard marketing package for a membership fee that includes advertising space in directories, networking opportunities and access to marketing research. Your marketing strategy should also include a professional website with all of your contact information, locations, hours and what services you provide.
Should you decide to move your auto title company to a different location, you must submit a completed, notarized application with the original bond, original authorization form and a check or money order made payable to the Department of Public Safety & Corrections in the amount of $8.
If you add a new location for your title company, you must also submit a completed, notarized application and bond with a check or money order in the amount of $50.