Do you want to start your own business and make money selling cars in California? Then follow these steps below, you are only 30 days away from becoming a licensed used car dealer!
- Attend a live in person six hour seminar taught by a licensed DMV education provider such as Redline Dealer Education. Receive a DMV certificate of completion needed to complete the DMV Occupational Licensing application.
- Visit your local DMV occupational licensing department with your certificate of completion and take a DMV issued 40 question exam for $16 (must pass with 70% or better).
- Decide whether you would like to be a wholesale, auto broker and/or retail dealer. The fee schedule is:
- $175.00 Nonrefundable original application fee.
- $ 1.00 Family Support Program fee.
- $100.00 Auto broker (plus original application fee).
- $ 70.00 For each branch location (if applicable).
- $ 70.00 For each dealer plate (plus county fees, if applicable).*
- $ 72.00 For each motorcycle plate (plus county fees, if applicable).
* This is an approximate amount, it will vary depending on the county where your business is located.
- Apply for a fictitious business name. This can be done with your local county recorders office for a nominal fee, be sure to utilize their system to ensure your proposed business name has not already been taken.
- Register online with the IRS and receive your Employer Identification Number (EIN). There is no fee associated with this service.
- Complete the Used Dealer Application Form. The application includes supplemental required documents such as obtaining a lease/rental agreement and surety bond. Be sure to reference the Used Dealer or Dealer Wholesale Only Application Checklist to ensure you have all forms filled out correctly.
- Obtain a live scan fingerprint, use the DMV 8016 form.
- Open a business bank account. You will need your paperwork from the county recorders office to use your chosen fictitious business name and your EIN you filed with the IRS. Remember to keep your business revenues and expenses separate from personal accounts, consult with a licensed tax consultant and/or accountant for more information.
- Register online with the Board of Equalization and receive your Seller’s Permit, this service is free of charge. As a licensed dealer you will be required to collect sales tax on every vehicle you sell to the public. Wholesale only dealers and auto brokers must still apply for a seller’s permit.
- Apply for a city license. This can be done at the city hall where your business will be located, you will be charged a nominal fee.
- Submit your application in person to a DMV Occupational Licensing department listed above. Upon receipt of the completed application and fees DMV will issue a temporary license to operate the same day!
We are here to help, contact us to help guide you through the process.