Get Your Dealer License in Illinois

NOTE: If any links give you trouble, report them to me...lol.. Email me at [email protected]

Step 1: Dealer Training Class

All applicants for a used car license are required to attend an eight (8) hour dealer training class prior to applying for an initial license.

Step 2: Location - Lot or Showroom/Warehouse (need 1st and last month to secure)

To find a location, read the requirements in Illinois Administrative Code, Section 1020.10. Additional resources include the commercial real estate section on Craigslist, real estate agents experienced in commercial property & zoning and other auto dealers. Here is how you find out where other dealers have leased space.

Step 1: Search cars for sale on Craigslist by dealers.

Step 2: Take the phone number from the Craigslist listing and search it on the internet.

Step 3: Take the address of the dealer and search to find the office complex or warehouse that allows auto dealers.

Step 4: Last step is to contact the landlord for any vacancies.

Step 3: Incorporation & EIN 

Incorporate online at the Illinois Secretary of State 

The filing fee is $150 plus an initial franchise tax payment assessed at rate of $1.50 per $1,000 of paid-in capital represented in Illinois. The minimum initial franchise tax is $25. So roughly about $175 to incorporate.

To apply for your Employer Identification Number (EIN), visit the IRS website. It's FREE to apply.

 You may need these numbers: NAICS Code for Used Car Dealers 441120 and SIC Code 5521.

Step 4: Bond - $20,000

I describe a Bond as an insurance policy for your customers. You only pay a percentage of the Bond amount. That percentage is based on your credit score with the most favorable rates for those with 680 score or higher in my experience. 

Step 5: Liability Insurance

A certificate of insurance in a solvent company authorized to do business in the State of Illinois must be included with your application. The policy must provide liability coverage in the minimum amounts of $100,000 for bodily injury to, or death of, any person, $300,000 for bodily injury to, or death of, two or more persons in any one accident, and $50,000 for damage to property. Trailer and mobile home dealers are exempt from this requirement.

Step 6: Obtain  Retailers' Occupation Tax Act Registration

You can get more information through the Illinois Department of Revenue. Call or visit the nearest location to you.

Step 7: Submit your Dealer License Application - $500 to $1000

Complete your application form, along with all other necessary documentation, to the Illinois Vehicle Services Department.

Fees:

• Certificate of Authority annual fee: $1,000 ($500 for a first application between June 15 and December 31)
• Master plates annual fee: $45
• Duplicate plates: $13

Additional fees can be found on page 4 of the dealer application.

 Mail your application to:

 Vehicle Services Department
Dealer Licensing Section
501 S. Second St., Rm. 069
Springfield, IL 62756

You can expect your application to be reviewed in 2 to 4 weeks.

Step 8: Get a Mentor!

Take the shortcut and get licensed faster!

The licensing process can cost you time and money without a winning strategy. Join Drama Free Licensing to get the help you need to get licensed without any setbacks.