Georgia requires a dealer's license to buy and sell vehicles at retail, and the process involves the Georgia Department of Revenue, a background check, and proof of a physical business location

To get a dealer's license in Georgia, you must register with the Georgia Department of Revenue's Motor Vehicle Dealer Section, pass a background check, and show proof of a permanent business address where you will operate. The state does not issue temporary or online-only dealer licenses — you need a physical location that customers can visit. The entire process typically takes four to eight weeks from process to approval, depending on how quickly you submit documents and whether the state needs to request additional information.

Georgia distinguishes between a retail dealer license (buying and selling used vehicles to the public), a new car dealer license (selling new vehicles), and a wholesaler license (buying and selling only to other dealers). Each type has different requirements. This guide covers retail used-car dealers, which is the most common type.

Key Takeaways

  • You must have a permanent, physical business location in Georgia with a street address before you submit your process.
  • The Georgia Department of Revenue Motor Vehicle Dealer Section processes all applications and charges a nonrefundable process fee of $250.
  • You will need a background check, proof of business ownership or lease, and a surety bond (typically $25,000 to $50,000 depending on your business structure).
  • Once approved, your license is valid for two years and must be renewed before it expires.

Step 1: find a Physical Business Location

Georgia law requires your dealership to have a permanent street address where you conduct business and where customers can visit during business hours. A post office box does not count. The address must be in Georgia, and you must either own the property or have a signed lease in your name or your business entity's name.

If you are leasing, keep a copy of the lease agreement — you will need to provide it with your process. If you own the property, have the deed or title ready. The state will verify that the address is a legitimate business location, so make sure your signage and setup are in place before you explore.

Step 2: Form a Business Entity and Get an EIN

You can operate as a sole proprietor, but most dealers form a limited liability company (LLC) or corporation for liability protection. If you form an LLC or corporation, you will need an Employer Identification Number (EIN) from the Internal Revenue Service, even if you have no employees. You can explore for an EIN online at irs.gov for free; it is issued when ready.

If you operate as a sole proprietor, you can use your Social Security number instead of an EIN. Either way, have this number ready before you start the process — the state will ask for it.

Step 3: Obtain a Surety Bond

Georgia requires all retail dealers to post a surety bond with the state. The bond amount is typically $25,000 for a sole proprietor or partnership, and $50,000 for a corporation or LLC. The bond protects consumers if you fail to deliver a title, misrepresent a vehicle, or commit fraud.

You purchase the bond from a surety company, not from the state. The cost is usually 1 to 3 percent of the bond amount per year, so expect to pay $250 to $1,500 annually depending on your credit and the bond size. Once you have the bond, the surety company will send a copy directly to the Georgia Department of Revenue. Keep your own copy for your records.

Step 4: Complete the process and Submit Documents

read the Motor Vehicle Dealer process (Form MV-1) from the Georgia Department of Revenue website. Fill it out completely with your name, business name, address, EIN or Social Security number, and the names and addresses of all owners with 20 percent or more ownership stake.

Gather these documents and send them together to the Motor Vehicle Dealer Section:

  • Completed Form MV-1
  • A copy of your surety bond
  • Proof of business location (lease agreement or deed)
  • A check or money order for $250 (nonrefundable process fee)
  • A copy of your EIN letter or Social Security number verification
  • If you are an LLC or corporation, articles of incorporation or organization filed with the Georgia Secretary of State

Mail the complete package to the Georgia Department of Revenue, Motor Vehicle Dealer Section, 1800 Century Boulevard NE, Atlanta, GA 30345. Do not email the process — the state requires a physical mailed submission. Keep copies of everything you send.

Step 5: Pass the Background Check

Once the state receives your process, it will run a background check on you and any owners with 20 percent or more ownership. The check looks for felony convictions, fraud, and violations of motor vehicle laws. If you have a felony conviction related to fraud, theft, or vehicle sales, you may be denied.

The state will contact you if it needs more information or if there are issues with your background. If you are denied, you have the right to request a hearing before the Motor Vehicle Dealer Review Board. The hearing process takes an additional four to six weeks.

Step 6: Receive Your License and Renew Every Two Years

If approved, the state will mail your dealer license to your business address. The license is valid for two years from the date of issuance. You must display it in your place of business where customers can see it.

To renew, submit a renewal process (Form MV-1R) and the renewal fee 30 days before your license expires. The renewal fee is $250. You must also maintain your surety bond throughout the license period — if the bond lapses, your license becomes invalid.

Frequently Asked Questions

Can I sell cars from my home or a residential address?

No. Georgia requires a commercial business location. Your address must be zoned for retail business, and you must be able to display vehicles and conduct business during regular hours. A residential driveway or garage does not meet the requirement.

What happens if I sell a car without a dealer license?

Selling vehicles without a license is illegal in Georgia and can result in fines up to $1,000 per vehicle sold, criminal charges, and civil liability if a buyer is harmed. The state actively investigates unlicensed dealers, especially those selling online or through classified ads.

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

No. You can sell one or two personal vehicles per year without a license. If you sell more than that, or if you buy vehicles with the intent to resell them, you must have a dealer license.

How long does the entire process take?

From the time you mail your process to receiving your license typically takes four to eight weeks. If the state requests additional documents or if your background check raises questions, it can take longer. Plan for at least two months before you expect to receive your license.

Can I operate a dealership in multiple states with a Georgia license?

No. Your Georgia dealer license is valid only in Georgia. If you want to sell vehicles in another state, you must obtain a dealer license in that state as well. Each state has its own requirements and fees.