Choose the right license category
Decide what you will sell, who you will sell to and whether you will hold inventory. A retail used-car dealer, wholesaler, broker, motorcycle dealer and boat dealer may not use the same application. Do not select a category based only on which one appears cheaper.
Use the licensing authority’s current forms. Some agencies have changed forms, fees or bond amounts. A saved PDF from several years ago may no longer be the right starting point.
Confirm the location before committing
Review zoning, office, display-space, signage and inspection rules before signing a long lease. Ask the licensing authority about shared locations, home-based operations and appointment-only arrangements if those apply.
Organize entity registration, tax registration, ownership information, training and background-check requirements. Keep the business name and address consistent across the application, insurance and bond.
Arrange the insurance and bond
Ask for the insurance required for your specific license and plates, then consider the protection you need for inventory, customers and employees. Send the agent the state’s insurance instructions and any lender or landlord requirements.
Check bond amount, accepted form, term, effective date and required signatures. A bond premium is a separate cost from the bond’s face amount. Some states have conditional requirements or allow an alternative form of security.
Finish the licensing process
Submit the required documents and fees, complete the inspection and wait for the necessary approvals before operating. An insurance binder is not a dealer license. Keep a calendar for insurance, bond, plate and license renewals.
RVs, heavy trucks, motorcycles, boats and brokerage activities can require a different category review.