How to Get a Dealer's License in Georgia

What You Need to Do to Get a Dealer's License in Georgia

A Georgia dealer's license lets you buy and sell vehicles at wholesale. To get one, you must register with the Georgia Department of Revenue, pass a background check, obtain a sales tax permit, and meet bonding requirements. The process takes roughly four to six weeks from start to finish, though timing depends on how quickly you gather documents and how long the background check takes.

You cannot legally buy and resell vehicles without this license — doing so is treated as operating an unlicensed dealership and carries fines and criminal penalties. The license itself is not expensive, but the bonding requirement and sales tax permit setup do have costs you should budget for upfront.

Key Takeaways

You must register with the Georgia Department of Revenue Motor Vehicle Dealer Unit and obtain a dealer's license before you can legally buy and resell vehicles.
Georgia requires a surety bond (typically $25,000 to $50,000 depending on your business structure) and a sales tax permit before your license is issued.
You will need a federal Employer Identification Number (EIN) from the IRS, even if you are a sole proprietor, to explore for the sales tax permit.
A background check is part of the process, and felony convictions or certain fraud-related charges can disqualify you.
Once licensed, you must renew annually and maintain records of all vehicle purchases and sales for the state.

Register With the Georgia Department of Revenue

Start by contacting the Motor Vehicle Dealer Unit at the Georgia Department of Revenue. You can reach them by phone at 404-417-6000 or visit their office in Atlanta. They will send you the dealer registration form (Form MV-1) and explain what documents you need to submit.

Fill out the form completely with your name, address, business structure (sole proprietor, LLC, corporation, etc.), and the location where you will operate. If you are operating under a business name different from your legal name, include that as well. You will also need to list any other people with ownership stake in the business.

Submit the completed form along with a copy of your driver's license or state ID. If you are an LLC or corporation, include a copy of your articles of incorporation or organization filed with the Georgia Secretary of State. The Department of Revenue will use this to verify your legal business structure.

Obtain a Surety Bond

Georgia law requires all vehicle dealers to carry a surety bond. The bond amount depends on your business structure and how many locations you operate from. For a single-location dealership, the bond is typically $25,000 to $50,000. You cannot proceed with your license process without proof of this bond.

Contact a surety bond company or insurance agent licensed to write bonds in Georgia. You will need to provide information about your business, personal background, and financial situation. The surety company will assess the risk and quote you a premium — usually between 2 and 5 percent of the bond amount annually. A $25,000 bond might cost $500 to $1,250 per year.

Once the surety company approves you, they will issue a bond certificate. This certificate must be in the name of the State of Georgia and list the Georgia Department of Revenue as the obligee. Submit the original bond certificate to the Department of Revenue as part of your process package.

Get a Sales Tax Permit From the Georgia Department of Revenue

Before you can legally sell vehicles in Georgia, you must register for a sales tax permit. This is a separate process from the dealer license but must be completed before your license is finalized.

To explore for the sales tax permit, you will need a federal Employer Identification Number (EIN) from the IRS. If you are a sole proprietor, you can use your Social Security number, but the IRS recommends getting an EIN anyway. You can explore for an EIN online at irs.gov for free — it takes about 15 minutes and you receive the number when ready.

Once you have your EIN, go to the Georgia Department of Revenue website or visit in person to explore for the sales tax permit. You will provide your business name, address, EIN, and the type of business (vehicle dealer). The permit is issued quickly, usually within one to two weeks. You will receive a permit number that you must include on all sales tax returns.

Pass the Background Check

The Georgia Department of Revenue runs a background check on all dealer applicants. This check looks at criminal history, fraud convictions, and any prior violations of motor vehicle dealer laws. The check typically takes two to three weeks.

Felony convictions, particularly those involving fraud, theft, or dishonesty, can disqualify you. Misdemeanor convictions are reviewed on a case-by-case basis. If you have a criminal history, disclose it on your process — the Department of Revenue will find it anyway, and honesty improves your chances if the offense is not an automatic bar.

If the background check reveals issues, the Department of Revenue will contact you to discuss them. You may be asked to provide additional documentation or explanation. Do not ignore this communication — responding promptly and thoroughly is your best chance of moving forward.

Submit Your Complete process Package

Gather all documents and submit them together to the Motor Vehicle Dealer Unit. Your package should include the completed Form MV-1, a copy of your ID, proof of your business structure (articles of incorporation or organization if applicable), the surety bond certificate, and proof of your sales tax permit number.

You can submit by mail to the Georgia Department of Revenue, Motor Vehicle Dealer Unit, 1800 Century Boulevard NE, Atlanta, GA 30345, or deliver in person. Include a cover letter listing what you are submitting so the reviewer can confirm everything is there.

After submission, the Department of Revenue will review your process and run the background check. You will receive written notice of approval or denial. If approved, your dealer license will be issued and mailed to you. If denied, the letter will explain why and whether you can reapply.

Renew Your License Annually

Your Georgia dealer license expires one year from the date it is issued. You must renew it before expiration to continue operating legally. Renewal requires submitting a renewal form, proof that your surety bond is still active, and the renewal fee to the Motor Vehicle Dealer Unit.

The Department of Revenue will send you a renewal notice about 30 days before your license expires. Complete the form and return it with your payment. Renewal is usually faster than the initial process — typically two to three weeks — because the background check is not repeated unless there is a reason to do so.

Keep records of all vehicle purchases and sales. Georgia law requires dealers to maintain a record book showing the date, vehicle identification number (VIN), seller name, buyer name, and sale price for every vehicle you buy or sell. These records must be kept for at least three years and made available to the Department of Revenue upon request.

Frequently Asked Questions

Can I sell vehicles before my license arrives in the mail?

No. You cannot legally buy or sell vehicles until your license is issued and in your possession. Selling before you are licensed is operating an unlicensed dealership, which is a criminal offense in Georgia. Wait for the physical license to arrive before conducting any sales.

What happens if I let my license expire?

If your license expires and you continue to buy and sell vehicles, you are operating illegally. The Department of Revenue can fine you, revoke your license permanently, and refer you for criminal prosecution. Renew before the expiration date listed on your license.

Do I need a separate license for each location if I open multiple dealerships?

Yes. Each physical location where you buy and sell vehicles requires its own dealer license. You will need to submit a separate process and surety bond for each location. Contact the Motor Vehicle Dealer Unit to discuss bonding requirements for multiple locations, as they may differ from a single-location setup.

Can I get a dealer license if I have a felony conviction?

It depends on the felony. Convictions involving fraud, theft, or dishonesty are usually automatic bars. Other felonies are reviewed individually. Contact the Motor Vehicle Dealer Unit before explore if you have a felony record — they can tell you whether your specific conviction disqualifies you.

How much does the whole process cost?

The license fee itself is modest, but the surety bond is the main expense. A $25,000 bond costs roughly $500 to $1,250 per year depending on the surety company and your risk profile. Add the cost of the sales tax permit (usually free or a small fee) and any legal help if you need it. Budget $500 to $2,000 for the first year, then $500 to $1,250 annually for renewal.

This guide is for general information only and is not medical, financial, legal, or other professional advice. For decisions specific to your situation, consult a qualified professional. See our Editorial Policy.