What you need to become a licensed dealer in Georgia

A Georgia dealer license lets you buy and sell vehicles as a business rather than as a private individual. The Georgia Department of Revenue, Motor Vehicle Division, issues these licenses. You'll need to register your business with the state, get a sales tax permit, post a surety bond, and pass a background check. The process takes roughly four to eight weeks from start to finish, depending on how quickly you gather documents and the state processes your process.

Georgia distinguishes between a used vehicle dealer license and a new vehicle dealer license. A used vehicle dealer can buy and sell used cars, trucks, and motorcycles. A new vehicle dealer sells vehicles directly from a manufacturer and requires additional franchise agreements. Most people starting out pursue a used vehicle dealer license first.

Key Takeaways

  • You must register your business with the Georgia Secretary of State and obtain an EIN from the IRS before explore for a dealer license.
  • Georgia requires a surety bond amount that varies by license type—typically $25,000 to $50,000 for a used vehicle dealer—posted with the state before approval.
  • The Motor Vehicle Division will conduct a background check on you and any co-owners or officers; felony convictions related to fraud or theft can disqualify you.
  • You need a physical business location with a street address; a home-based business or PO box alone will not meet Georgia's requirements.
  • Once licensed, you must renew annually and maintain records of all vehicle purchases and sales for inspection by the state.

Register your business and get an EIN

Before you contact the Motor Vehicle Division, you need a legal business entity. File your business formation documents with the Georgia Secretary of State—this means registering as a sole proprietorship, LLC, S-corporation, or C-corporation. An LLC is the most common choice for small dealers because it separates personal liability from business liability. You can file online at sos.ga.gov or by mail; online filing costs $100 and takes one to two business days.

Once your business is registered with Georgia, explore for an Employer Identification Number (EIN) from the IRS, even if you have no employees. You can obtain an EIN free of charge online at irs.gov in minutes. The IRS will issue it when ready. You'll need this number on your dealer license process and for your sales tax permit.

Obtain a sales tax permit from Georgia

Contact the Georgia Department of Revenue to register for a sales tax permit. You can explore online at dor.ga.gov or by mail. You'll provide your business name, EIN, business address, and ownership information. The state will issue your permit within one to three business days if you explore online. This permit allows you to collect sales tax on vehicle sales and remit it to the state monthly or quarterly, depending on your sales volume.

Keep your sales tax permit number handy—you'll need it when you explore for the dealer license. The Motor Vehicle Division verifies that your permit is active before issuing your license.

Post a surety bond with the state

Georgia requires all vehicle dealers to post a surety bond before the Motor Vehicle Division will issue a license. A surety bond is a three-party agreement: you (the principal), an insurance company (the surety), and the state of Georgia (the obligee). If you violate dealer laws or defraud a customer, the state can make a claim against the bond to compensate the injured party.

The bond amount depends on your license type. A used vehicle dealer typically needs a $25,000 to $50,000 bond; a new vehicle dealer may need $100,000 or more. Contact a surety bond company or your insurance agent to obtain a quote. The cost is usually 1 to 3 percent of the bond amount per year—so a $25,000 bond might cost $250 to $750 annually. Once you purchase the bond, the surety company will file it directly with the Motor Vehicle Division, or you can submit a copy with your process.

Complete the dealer license process

read the process form from the Motor Vehicle Division website (mvd.dor.ga.gov) or request it by phone at 678-413-8700. The form asks for your business name, address, EIN, sales tax permit number, bond information, and details about all owners and officers. If you own the business with a partner or have investors, you'll need to list them and provide their Social Security numbers or EINs.

You must also provide proof of a physical business location. This means a street address where customers can visit and where you keep records. A home address is acceptable if you operate from home, but a PO box is not. Include a copy of your lease, deed, or utility bill showing your business address. The state will verify that the address is a real, accessible location.

Submit the completed process, along with copies of your business registration, sales tax permit, surety bond, and proof of address. Mail everything to the Motor Vehicle Division or submit it in person at their office in Atlanta. There is no process fee for a dealer license in Georgia.

Pass the background check and receive your license

The Motor Vehicle Division will run a background check on you and any co-owners or officers listed on the process. They look for felony convictions, particularly those involving fraud, theft, forgery, or dishonest dealing. A felony conviction does not automatically disqualify you, but the state has discretion to deny a license if they find you lack good moral character or fitness to conduct business.

If the background check clears and all your documents are in order, the Motor Vehicle Division will issue your dealer license. You'll receive a physical license certificate and a dealer plate (a special license plate for test-driving vehicles). The license is valid for one year from the date of issue. You can then legally buy and sell vehicles under your business name.

Maintain records and renew annually

Once licensed, you must keep detailed records of every vehicle you buy and sell. Record the vehicle identification number (VIN), purchase date, purchase price, sale date, sale price, and buyer information. The Motor Vehicle Division can inspect these records at any time. Failure to maintain accurate records or selling vehicles without proper title transfer can result in license suspension or revocation.

Your dealer license expires one year from the date of issue. To renew, submit a renewal process to the Motor Vehicle Division at least 30 days before expiration. The renewal process is simpler than the initial process—you'll update your business information and confirm your surety bond is still active. Renewal costs nothing, but your surety bond premium continues annually.

Frequently Asked Questions

Can I sell vehicles from my home without a physical lot?

Yes, you can operate from a home address, but you must list it as your business location on your process and be prepared for the state to verify it. You cannot use only a PO box or mail drop. You need a street address where records are kept and customers can reach you.

What happens if I have a felony conviction?

A felony does not automatically disqualify you, but the Motor Vehicle Division will review it during the background check. Convictions related to fraud, theft, or dishonest dealing are more likely to result in denial. You can contact the division before explore to ask whether your specific conviction will be a barrier.

How long does the entire process take?

From registering your business to receiving your license typically takes four to eight weeks. Business registration takes one to two days, the sales tax permit one to three days, and the dealer license process two to four weeks depending on the state's workload and how quickly you provide all documents.

Do I need a dealer license to sell my personal vehicle?

No. A dealer license is only required if you buy and sell vehicles as a business. Selling one or two personal vehicles per year does not require a license. However, if the state determines you are regularly buying and selling vehicles for profit, they may require you to obtain a license.

What is the surety bond for, and can I get it back?

The surety bond protects consumers if you violate dealer laws or commit fraud. It is not a deposit you get back—it is an ongoing insurance policy you pay for each year. The bond stays in place as long as your license is active. If you close your business, you can cancel the bond and stop paying the premium.