How To Get A Tennessee Dealer License:
A Step by Step Guide

Are you up to the challenge? Here is a simple guide of steps needed to take to get your Tennessee dealer license.

Step 1: Determine Your Business Structure

Before you apply, decide whether you’re opening a new or used car dealership, and choose your business structure (sole proprietorship, LLC, corporation, etc.). Your business structure will determine your tax and liability obligations.

Step 2: Secure a Location

SPECIFIC TN REQUIREMENTS

Step 3: Obtain a Federal Employer Identification Number (EIN)

Obtain a Federal Employee Identification Number (FEIN from 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 4: Apply for a Sales Tax Permit

You need to register for a Tennessee Sales Tax Permit with the Tennessee Department of Revenue. This will allow you to collect sales tax on vehicle sales.

Step 5: Obtain a Surety Bond

Tennessee requires auto dealers to have a surety bond to protect consumers in case of business violations. The required amount depends on your type of dealership:

  • Used Car Dealer: $50,000 bond
  • New Car Dealer: $50,000 bond
  • Wholesale Dealer: $10,000 bond The bond ensures that your dealership will comply with state laws and regulations.



Step 6:  Prepare a Financial Statement

Enhance your virtual programs by allowing your learners to access high-quality live sessions

Step 7:  Obtain a Garage Liability Policy

You must provide proof of insurance via a certificate of insurance for a garage liability policy.  Garage Liability policies can be quoted and purchased fastest through Insurance Agency HERE


Step 8:  Signage and Photos

ENTER REQUIREMENT HERE

Step 9:  Background Check

Enhance your virtual programs by allowing your learners to access high-quality live sessions


Step 10:  Floor Plan Form

Enhance your virtual programs by allowing your learners to access high-quality live sessions

Step 11:  Prepare Application Fees

Enhance your virtual programs by allowing your learners to access high-quality live sessions

Step 12:  Compile All Documents and Complete Application

You will need to submit a completed application for a dealer’s license to the Tennessee Motor Vehicle Commission. You can obtain the application form from the Commission’s website. Required documents generally include:

  • Completed application form.
  • Proof of business location (like a lease or deed).
  • Proof of zoning compliance.
  • Certificate of completion of pre-licensing education (if applicable).
  • EIN.
  • Sales tax permit.
  • Surety bond.
  • Background check consent form.

Be sure to verify the latest version of the application form and required documents on the TMVC website.


Created with