Get Your Dealer License in Texas

Step 1: Location -  (need 1st and last month to secure)

For your permanent business location to be approved for your license, you must meet the following requirements:

• Located in a building which has connecting exterior walls on all sides
• Compliant with all applicable local zoning ordinances and deed restrictions
• May not be located within a residence
• Must have a valid mailing address
• An office with, at minimum, a desk, two chairs, internet access and a working telephone listed in the business name or assumed name under which the dealer does business
• A clearly visible, permanent sign with letters at least six inches in height showing the business’ name
• An adequately illuminated on-site display area with enough space for at least five vehicles
• The location must be owned by the dealer, or have a written lease agreement for the property for the term of the license
• The business must be open at least four days per week and for at least four consecutive hours during each of those days. The hours must be posted at the main entrance
• The telephone must answered from 8:00 a.m. to 5:00 p.m. weekdays by an employee or answering service

To find your location, the following resources may be helpful: 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 2: Incorporation & EIN 

Incorporate online at the Texas Secretary of State 

The filing fee is $300.

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 3: Bond - $25,000

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 4: Other Required Documents

Your application should also contain the following:

• Proof of identity: A copy of a current driver’s license will do
• Assumed name certificates for the business if operating under an assumed name
• A detailed map of your location
• An application for eTAGS, included in the application package
• Dealer development stores must show documentation that the business meets the requirements of Occupations Code §2301.476 and 43 TAC §215.113; contact the Texas Department of Motor Vehicles for more details

Step 5: Submit Application

You can get more information through the Texas Department of Motor Vehicles.

Mail the completed application forms to:

Texas Department of Motor Vehicles

Motor Vehicle Division

1. O. Box 26487

Austin, TX 78755

(512) 465-5634

The form can also be submitted by e-mail to [email protected]

Fees:

• $350 license fee
• $700 General Distinguishing Number License Fee
• $90 for each dealer license plate

Fees can be submitted by credit card payment.

Note: All licenses are valid for two years from their start date. Once you have received your license, it must be displayed in a conspicuous place at each place of business.

Step 6: Get a Mentor!

The learning curve is 2 years. Take the shortcut and be profitable faster.

You can have knowledge and experience at your side to give you that 20/20 hindsight vision. Go to the Auto Dealer Business School to learn how you can level up with a mentor.

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