How To Get Licensed: A Step by Step Guide

Are you up to the challenge?  Here is a simple guide of steps you need to take to get you Utah Dealer License

Step 1: Orientation 

All applicants for a dealer license must attend an eight-hour orientation course. In order to renew a dealer license, the dealership must complete a three-hour training class each year.

Step 2: Business Name

All applicants will need to file their trade name with the Department of Commerce, 160 East 300 South, Salt Lake City, Utah – Telephone 801-530-4849.
Licensees who finance their sales or who arrange financing for their purchaser must be registered with the Department of Financial Institutions, 324 South State, Suite 201, Salt Lake City, Utah – Telephone 801-538-8830.
Dealers who sell mobile homes should contact the Department of Commerce, 160 East 300 South, Salt Lake City, Utah – Telephone 801-530-6747

Step 3: Surety Bond

Dealers must file a corporate surety dealer bond with MVED.
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New or used motor vehicle or large trailer dealers — $75,000
Motorcycle or small trailer dealers — $10,000
Small trailers are trailers between 750-1,999 lbs. unladen weight.

**Make sure the business name is exactly the same on the bond from step 2!

Step 4: Principle Place of Business

You must have a site or location in Utah that complies with all local ordinances, including zoning for motor vehicle sales and is devoted exclusively to the sale of motor vehicles and business incidental to it. The site must be sufficiently bounded by fence, chain, posts or other wise marked to definitely indicate its boundaries. There must be enough display space for at least three vehicles. There must be a permanent, enclosed building or structure large enough to accommodate the office of the dealership. This office must provide a safe place to keep the books and other records of the business. You must conduct the principle portion of the dealership’s business from this location and you must also keep the dealership’s books and records there. The Principle Place of Business must not share any common area with another dealer, auction, dismantler, of manufacturer or any business or activity not directly related to motor vehicle commerce.

Step 5: Fingerprints

All individuals included as an owner of a dealership ( Owner can be a Proprietor, LLC and LLP Member, Partner or Corporate Officer) must submit a standard fingerprint card filled and verified by a local law enforcement agency and a fee of $20.00 with the application and forms.
Each owner must fill out a Form TC-465,Fingerprint Waiver.

Step 6: Photographs

Include passport quality photographs of owners, partners, or corporate officers. As explained above, it is also required that photo of the sign and place of business be included.

Step 7: Sales Tax License

Dealers must furnish proof that they have a valid sales tax license for the sale of motor vehicles. MVED can assist you in obtaining forms and filing for the Sales Tax License. TC-69, Utah State Business and Tax Registration is needed to apply.

Step 8: Garage Liability Insurance

You must also provide proof of declaration page(s) for plate insurance. 
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Step 9: Obtain Federal Employee Identification Number (FEIN)

Internal Revenue System) or Social Security Number and Affidavit. Sole Proprietors with no employees and partnerships can submit proof of identification instead of a FEID number. 
This is done on www.irs.gov

Step 10: Sign

A permanent sign, not less that 24 square feet in size must be either painted on the dealership office, attached to the office with nails or bolts, or placed on posts in the display yard that have been securely anchored in the ground. The sign must fully identify the dealer’s principle place of business and show the full name of the dealership as it is licensed. A picture of the principle place of business and sign should be submitted to MVED along with the application, forms and fees.

Step 11: Fees

License fees are as follows:
New or used motor vehicle dealer – $127
Special equipment dealer – $127
New or used motorcycle/OHV/small trailer dealer – $51
Dealer plates (optional – $ 12.00 each, limit of 5, plus a small handling fee)
Fingerprints – $ 20.00 each owner, partner or corporate officer

Step 12: Application Form

Form TC-301, Bonded Motor Vehicle Business Application, must be properly completed and signed. Applications, bond, picture of the sign and principle place of business, and fees must be submitted for approval to the Motor Vehicle Enforcement Division, 210 North 1950 West, Salt Lake City, Utah 84134. Please allow five to ten working days after the application is received by MVED for on-site inspection of the place of business. The license cannot be issued until after this inspection.
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