What a Georgia dealer's license actually requires

A Georgia dealer's license lets you buy and sell vehicles as a business rather than as a private person. The Georgia Department of Revenue issues these licenses, and the process involves paperwork, a physical location, and a background check. You cannot get a dealer's license if you have certain criminal convictions or if you owe back taxes to Georgia.

The state distinguishes between different types of dealer licenses based on what you sell: new vehicles, used vehicles, or both. A used vehicle dealer license is the most common route for someone starting out. The requirements are the same whether you want to sell cars, trucks, motorcycles, or RVs — the license covers all motor vehicles.

Georgia does not require you to pass a written test or attend a class to get a dealer's license. What you do need is a physical business location, a federal Employer Identification Number (EIN), proof of financial responsibility, and to complete the process form. The whole process typically takes four to eight weeks from the time you submit your paperwork.

Key Takeaways

  • You must have a physical business location with a street address — a mailbox or home address alone will not work for a dealer's license.
  • The Georgia Department of Revenue requires an EIN from the IRS, proof you can cover customer claims (usually a surety bond), and a completed process form.
  • Criminal convictions for fraud, theft, or certain other offenses will disqualify you, as will owing back taxes to Georgia.
  • Once licensed, you must renew your license every two years and follow Georgia's rules on advertising, odometer readings, and title transfers.

The physical location requirement

Georgia requires that your dealership have a permanent, physical business address where customers can find you during business hours. This cannot be a post office box, a UPS store mailbox, or a residential home address. The address must be a street address where you actually conduct business — typically a lot, a storefront, or an office space.

The Department of Revenue will verify this address during the process process. Some dealers rent a small commercial space or share a lot with another business to meet this requirement. The location does not have to be large, but it has to be real and accessible to the public.

Getting your EIN and setting up your business structure

Before you explore for a dealer's license, you need a federal Employer Identification Number (EIN) from the IRS. This is a nine-digit number that identifies your business for tax purposes. You can get an EIN for free by going to the IRS website (irs.gov) and using their online process tool, which takes about 15 minutes. You can also explore by phone or mail, though online is fastest.

You will need to decide whether to operate as a sole proprietorship, a partnership, an LLC, or a corporation. Each structure has different tax and liability implications. Many small dealers operate as an LLC because it separates personal and business liability. You do not need to have your business structure finalized before you explore for the EIN, but you do need to have one before you explore for the dealer's license.

Proof of financial responsibility and the surety bond

Georgia requires that you show proof you can cover customer claims if something goes wrong — for example, if a customer discovers you sold them a vehicle with a hidden lien on the title. The state accomplishes this through a surety bond, which is an insurance-like product that guarantees you will follow the law.

The bond amount depends on the type of license. For a used vehicle dealer, Georgia typically requires a $25,000 surety bond. You purchase this from a surety company (not a regular insurance company), and it costs you a percentage of the bond amount each year — usually between 2 and 5 percent. So a $25,000 bond might cost you $500 to $1,250 per year.

To get a surety bond, you contact a surety broker or agent, provide information about your business and personal background, and they quote you a price. You pay the premium and they issue the bond certificate, which you then include with your license process. The bond stays in place as long as you hold the license.

Completing the Georgia dealer's license process

The process form is called the process for Motor Vehicle Dealer License (Form MV-1). You can read it from the Georgia Department of Revenue website or request it by mail. The form asks for your name, business name, business address, EIN, and information about any criminal history.

You will need to provide the following documents along with your process:

  • A copy of your surety bond certificate
  • Proof of your business address (a lease, deed, or utility bill in the business name)
  • Your EIN documentation from the IRS
  • A completed process form with your signature
  • The process fee, which is currently $50 for a used vehicle dealer license (fees vary by license type)

Mail your completed process and all supporting documents to the Georgia Department of Revenue, Motor Vehicle Division. The address is on the process form. Processing typically takes four to eight weeks. The Department will contact you if they need additional information or if there is a problem with your process.

What disqualifies you from getting a license

Georgia will deny your process if you have been convicted of fraud, theft, forgery, or certain other felonies related to vehicles or dishonesty. The state also denies licenses to people who owe back taxes to Georgia or who have had a dealer's license revoked in the past. If you have a criminal record, you should contact the Department of Revenue before explore to understand whether your specific conviction will disqualify you.

You can also be denied if you provide false information on your process or if you do not meet the basic requirements (physical address, surety bond, EIN). If your process is denied, the Department will send you a letter explaining why. You can request a hearing to contest the denial.

Renewing your license and staying compliant

Your dealer's license is valid for two years from the date it is issued. You must renew it before it expires by submitting a renewal process and paying the renewal fee (currently $50 for a used vehicle dealer). The Department will send you a renewal notice about 30 days before your license expires.

While you hold a license, you must follow Georgia's dealer rules: you cannot misrepresent a vehicle's condition or mileage, you must transfer titles correctly and on time, you cannot sell a vehicle with an outstanding lien without the lienholder's permission, and you must keep records of all sales. Violations can result in fines, license suspension, or revocation.

Frequently Asked Questions

Can I use my home address as my dealership location?

No. Georgia requires a physical business address that is not a residence. This must be a commercial lot, storefront, or office space where you conduct business and customers can visit during business hours.

How much does a surety bond cost?

A $25,000 surety bond for a used vehicle dealer typically costs between $500 and $1,250 per year, depending on your credit and business history. The surety company sets the price based on their assessment of risk.

What if I have a criminal record?

Convictions for fraud, theft, forgery, or certain other felonies will likely disqualify you. Contact the Georgia Department of Revenue before explore to discuss your specific situation. Some convictions may not disqualify you depending on how long ago they occurred and what the conviction was for.

How long does it take to get a dealer's license?

Processing typically takes four to eight weeks from the time the Department receives your complete process. The timeline depends on how quickly they verify your information and whether they need to contact you for additional documents.

Do I need a dealer's license to sell one or two vehicles a year?

Georgia considers you a dealer if you buy and sell vehicles as a business, even if you only sell a few per year. If you are selling your own personal vehicles occasionally, you do not need a license. The distinction depends on intent and frequency — the Department makes this judgment on a case-by-case basis.