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State Dealer License Requirements

A general look at what most states require to become a licensed used car dealer. Exact bond amounts, fees, and education requirements vary by state and change over time.

Requirements of Most States

While the specifics differ, nearly every state's dealer licensing process includes the same core building blocks.

Business Entity

A registered LLC or corporation, separate from your personal name.

Federal EIN

A federal Employer Identification Number for your dealership.

Business Location

A qualifying commercial office or lot — a home address usually won't satisfy this.

Surety Bond

A dealer bond, with the required amount set by each state.

Garage Liability Insurance

Insurance coverage for vehicles in your care, custody, and control.

Dealer Application

A formal application filed with your state's DMV, Department of Revenue, or Motor Vehicle Board.

Background Check

Many states require a criminal background check for the applicant and any other principals.

Location Inspection

Most states require your business location to pass an inspection before your license is issued.

A note on accuracy: Dealer licensing rules, bond amounts, and fees are set by each state and change periodically. This page reflects general, commonly-required categories — not a substitute for current, state-specific guidance. Book a free consultation and we'll walk you through the exact requirements for your state.