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License Application Process

Updated 08/02/16

Frequently Asked Questions

  • All of the following:

    1. A complete license application.
    2. Accompanying application pages for each additional location.
    3. The deferred presentment investigation/application fee for each location.
    4. The deferred presentment license fee for each location.
    5. $50,000 surety bond.
    6. Financial statement demonstrating minimum net worth of $50,000 per location (maximum of $250,000 per entity) determined in accordance with generally accepted accounting principles.
    7.  Any other information the Director considers necessary under the DPSTA.
    8. For a complete list of licensing requirements, refer to the application from (FIS 2040).
  • The applicant must demonstrate that it has the financial responsibility, financial condition, business experience, character, and general fitness to reasonably warrant a belief that the applicant will conduct its business lawfully and fairly.

  • Any of the following:

    1. The relevant business records and the capital adequacy of the applicant.
    2. The competence, experience, integrity, and financial ability of any person who is a member, partner, executive officer, or a shareholder with 10% or more interest in the applicant.
    3. Any record regarding the applicant, or any person referenced in item 2 above, of any criminal activity, fraud, or other act of personal dishonesty, any act, omission, or practice that constitutes a breach of a fiduciary duty, or any suspension, removal, or administrative action by any agency or department of the United States.
  • No.

  • The following criteria must be met:

    1. The surety bond must be issued by a bonding or insurance company authorized to do business in this state.
    2. The surety bond is in a principal amount of $50,000.
    3. The surety bond must be payable to the Director for the benefit of any individuals who are Michigan residents and who are creditors or claimants of the applicant.
    4. If one person owns 20% or more of the ownership interest in two or more licensees, the group of licensees is only obligated to furnish one $50,000 surety bond.
  • All of the following:

    1. Section 12 of the DPSTA requires the applicant (not its officers, directors, shareholders) demonstrate a minimum net worth of $50,000 per location.
    2. The maximum net worth for any entity regardless of the number of locations is $250,000.
    3. The financial statement is required to be completed in accordance with Generally Accepted Accounting Principles (GAAP).
  • A licensee that does not keep and maintain a net worth of at least $50,000 per location (maximum requirement $250,000) is in violation of the DPSTA.

  • No.

  • Annually on September 30.

  • The renewal application must be received annually by September 15 to allow for timely processing.

  • No.

  • The DPSTA requires the Director to act on an application within 60 days after the filing of a properly completed application, or within a longer time period if agreed to by the Director and the applicant.  If the Director fails to act on an application within the 60 day or otherwise agreed upon period, the applicant may submit a written request to the Director demanding a hearing before the Director on the question of whether the Director should grant a license.

  • A schedule of current fees can be found on the DIFS website.

The answers provided are not meant to be a substitute for legal advice.