Read This and Get Your Dealer License in 30 Days!
After you have completed the DMV Pre Licensing Course provided by Redline Dealer Education and have passed the DMV Occupational License exam you can then follow these steps below, you are only 30 days away from becoming a licensed used car dealer!
- Decide whether you would like to be a wholesale only, or retail dealer.
- Adding the broker endorsement to retail dealer?
- Set up your business structure. Will you be a sole proprietor, LLC, corporation, etc? Please seek legal counsel if you are unsure.
- Obtain a lease/rental agreement for your business
- Refer to these DMV Photography procedures.
- 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.
- Refer to this this link (Northern CA only) to access more information in your respective county
- Register online with the IRS and receive your Employer Identification Number (EIN). There is no fee associated with this service.
- 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.
- Obtain a surety bond, (shop around for the best quote) a couple of surety companies include
- Shop around and obtain used car dealer insurance. (Not required to obtain a dealer license but recommended) Companies to search for include
- Budget Plus Insurance
- George Piper Insurance Services (see above for contact info)
- Obtain a live scan fingerprint, use the DMV 8016 form. Go to your nearest live scan fingerprinting service agency to get this done.
- 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 Department of Tax and Fee Administration 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.
- Complete the Used Dealer Application Form. Be sure to reference the Used Dealer or Dealer Wholesale Only Application Checklist to ensure you have all forms filled out correctly.
- Submit your application to a DMV Occupational Licensing department listed above. Upon receipt of the completed application and fees DMV will contact you to issue a temporary license.
We are here to help, contact us to help guide you through the process.