Becoming a licensed dealer in California opens doors to dealer-only auctions, wholesale pricing, and a real, compliant business you can scale. The process is straightforward when you follow a proven sequence. This guide lays out the exact steps, forms, and decision points. Work through each section in order, grab the checklists, and reach out if you want our team to handle the setup with you.
Enroll in Pre-Licensing Get Dealership Setup Help Download the License Checklist
Who this page is for: New entrepreneurs applying for their first California dealer license; wholesale operators; retail dealers; brokers adding endorsements; powersports or salvage operators.
Want help across the entire sequence? Our Deluxe Dealer Package walks with you step-by-step. Get started now.
Selecting the correct license saves you time, cost, and rework.
Best if you will sell vehicles to the public. Requires a compliant display area, permanent signage, and an office that meets state requirements. You’ll be eligible for all major dealer auctions and full retail sales.
Best if you will sell vehicles only to other licensed dealers. Physical requirements can be lighter, but you still need a compliant office and record-keeping. Public sales are not permitted.
Add this endorsement to arrange purchases for your clients. You’ll coordinate transactions and can charge broker fees. Often paired with a retail license.
Focuses on motorcycles and powersports. Requirements are similar to retail but tailored to specialty inventory.
For parts and salvage. Requires additional permits and environmental compliance.
If you're unsure which path fits, use our short discovery call to align your goals: Set up your dealer license
Deep dive: License Types Explained
California requires DMV-approved education before you submit your application. Our course combines self-paced modules with live instruction so you understand both compliance and real-world dealership operations.
Outcome: You’ll receive a completion certificate to include in your application package.
Create a legal foundation that matches your risk tolerance and growth plans.
Most dealers choose an LLC or corporation for liability protection and tax flexibility. Register with the California Secretary of State, file for an EIN with the IRS, and keep ownership records consistent with your application.
If operating under a brand name, file a fictitious business name (DBA) with your county. Keep permits, filing receipts, and ownership documentation together—DMV may ask to see them.
Open a dedicated business bank account and, if needed, begin floorplan lender conversations early. Maintain clean separation between business and personal funds.
Internal link: Business Formation for Dealers
Your location is a core part of your approval. Requirements vary by city, but expect the following for retail:
Location mistakes to avoid: temporary signs, shared confusing space, using a PO Box as your business address.
Deep dive: Location & Signage Requirements
California requires a $50,000 dealer surety bond. Your annual cost depends on credit and experience; expect a small percentage of the bond amount as your premium. Obtain the bond form and power of attorney from your provider.
Recommended coverages: garage liability, lot coverage, dealer plate coverage, and workers’ compensation if applicable. Auctions and landlords may require specific limits.
More detail: Bond & Insurance Requirements
A complete, organized package speeds up approval and prevents back-and-forth.
Quality tips: Fill out forms exactly as your entity and signage appear. Ensure photos are clear and current. Keep copies of everything you submit.
Full walkthrough: DMV Application & Inspection
Inspection confirms your location, signage, records setup, and posted information meet requirements.
Common reasons for delays include temporary signage, insufficient display space, shared office arrangements, mismatched business names, or incomplete record-keeping.
Download the Inspection Readiness Checklist: /playbook/resources/
Once approved, order dealer plates and required forms/supplies. Set up accounting and deal jacket systems on day one, then register with auctions.
Getting auction-ready: have license, bond, insurance proof, W-9, and bank/floorplan info ready. Register online and plan transport for purchases.
Auction directory hub: Dealer Auctions Playbook
Timelines vary by city and completeness. Many applicants complete the process in a few to several weeks once the package is complete and the location is inspection-ready.
Main cost buckets: education, entity formation, lease and utilities, signage and office setup, dealer bond premium and insurance, DMV application fees and supplies.
We can help plan a realistic timeline for your city: Get dealership setup help.
Keep bond and insurance active, complete renewal education on time, maintain clean deal jackets and records, display your dealer number in advertising, and keep your location compliant.
Deeper guide: Dealer Compliance — Renewal education: Renewal course
Work from our License Checklist to stay organized: /playbook/resources/
Access them here: /playbook/resources/
If you've been asked for corrections, can't confirm zoning, or need help with bond and insurance, we can jump in at any point. The Deluxe Dealer Package is a done-with-you program designed to prevent bottlenecks and keep your application on track.
Get licensed the right way—fast. Enroll in your DMV-approved pre-licensing course, download the license checklist at /playbook/resources/, or set up your dealer license to have our team guide you through entity formation, bonding, location compliance, application prep, and inspection.
Questions about your city or situation? Contact us and we’ll point you to the exact steps you need.