How to Fill Out the North Carolina Dealer License Application (LT-400)

The North Carolina dealer license application, Form LT-400, is what you file with the NCDMV License and Theft Bureau to get licensed as a motor vehicle dealer. You complete the form, attach a $50,000 surety bond, garage liability insurance, proof of your location, and (for first-time used dealers) proof of a 12-hour licensing course, then mail the package with a $115.50 fee to Raleigh.¹

Do You Actually Need to File the LT-400

Under North Carolina General Statute 20-286, anyone who buys, sells, leases at retail, or exchanges five or more motor vehicles within any twelve consecutive months for money or other compensation is a motor vehicle dealer and must be licensed. The threshold counts vehicles you handle on someone else’s behalf too: if you arrange or negotiate five or more sales for others, you need the license.² Operating without a license is prohibited by GS 20-287 and carries penalties.³

Pick the Right License Type Before You Start

The LT-400 covers several license categories, and the fee you include with your application depends on which box you check:

Dealer License: $115.50 (retail sales of new or used vehicles to the public)
Wholesale Dealer License: $115.50 (dealer-to-dealer only)
Distributor License: $115.50
Factory Branch License: $167.25
Manufacturer Dealer License: $250.50

Most applicants pick either the retail dealer license or the wholesale license. The practical difference matters: wholesale dealers operate from an “established office” rather than an “established salesroom,” and because GS 20-292 restricts retail display and sales to established salesrooms, a wholesale license effectively bars you from selling to the public.⁴ Choose based on how you actually plan to operate.

Filling Out the Form

Business Identity

Enter the business name exactly as it appears in your filing with the North Carolina Secretary of State. If you trade under a different name, put the “Doing Business As” name in the designated field. Identify your business structure: sole proprietorship, partnership, LLC, or corporation. This determines who is legally responsible for the dealership.

You will also need to provide your federal Employer Identification Number and list all owners, partners, or corporate officers. For used motor vehicle dealers, GS 20-288(a1) requires that any salespersons the dealership employs be at least 18 years old, and any dealer who also acts as a sales representative has to obtain a separate sales representative license.⁵

Location

Provide the street address of the dealership. A P.O. box alone does not qualify. You must list the square footage of the office or salesroom, which has to be at least 96 square feet of enclosed floor space in a permanent building. Retail applicants list this as an “established salesroom”; wholesalers list it as an “established office.” Either way, it is where you keep your books, records, and files.⁶

The form also asks for the dimensions and surface of any display area. North Carolina does not set a minimum number of vehicles your lot must hold, but you need a permanent sign showing your trade name in block letters at least three inches tall on a contrasting background.⁶

Zoning

The LT-400 asks whether the proposed location complies with local zoning ordinances. If your municipality or county requires zoning approval for a motor vehicle dealership, attach a written approval letter from the local zoning or planning office. Call your planning department before you work through the rest of the form. A zoning review can take weeks, and you cannot submit the application without confirming compliance.

What You Have to Attach

The form on its own will not be processed. The Division needs the full package.

Surety Bond

Every dealer must furnish a $50,000 surety bond for the first established salesroom or place of business, plus $25,000 for each additional location. The bond must be issued by a company authorized to do business in North Carolina, and the business name on the bond must match the business name on your LT-400 exactly.⁷ NCDMV provides Form LT-409 specifically for this bond. A cash bond or fixed-value equivalent is also acceptable if the Commissioner approves it.⁸ Annual premiums for dealer surety bonds typically run between 1% and 5% of the bond amount for applicants with good credit, roughly $500 to $2,500 per year on a $50,000 bond.

Garage Liability Insurance

You need a comprehensive liability policy or a Garage Coverage Form with an Automobile Dealer Supplementary Schedule. The Certificate of Insurance has to show your dealership’s legal name and physical address, specify how many dealer plates the policy covers, and name the certificate holder as NCDMV, 4121 New Bern Ave., Raleigh, NC 27610.⁶ Wrong names or addresses on this certificate are one of the most common reasons applications stall.

Proof of Location

Include a copy of the property deed or a signed lease covering the full license term. If you lease, the agreement must specifically permit motor vehicle sales on the premises. Both lessor and lessee should sign it.

12-Hour Course for Used Dealers

First-time used motor vehicle dealer applicants must show proof under GS 20-288(a1) of a 12-hour dealer licensing course approved by the Division and completed within the past 12 months. Renewal applicants need a 6-hour course instead. New vehicle dealers are not subject to this requirement.⁵

Criminal Background Consent

Every applicant has to consent to a criminal history record check. A conviction does not automatically disqualify you. The Division weighs the seriousness of the offense, how long ago it happened, your age at the time, and evidence of rehabilitation, and it may only deny a license based on a conviction under the standards in GS 20-294 and GS 93B-8.1 where the offense is directly related to the duties of running a dealership.⁹ A false statement anywhere on the application is a separate ground for denial, so disclose fully.

Fees and Dealer Plates

The license fee of $115.50 (for a standard dealer or wholesale license) must accompany the application, and fees are non-refundable.¹

If you want dealer plates to move inventory on public roads for demonstrations and transport, the first five plates cost $46.25 each, and additional plates beyond five cost $23.13 each. A transit tax may also apply depending on your county.¹⁰ Because your garage liability certificate has to state how many plates the policy covers, settle the plate count with your insurance provider before you submit.

Where to Mail It

Send the completed LT-400, every supporting document, and your payment to:

NCDMV License and Theft Bureau
3101 Mail Service Center
Raleigh, NC 27699-3101

Before you seal the envelope, line up the business name on the LT-400, the surety bond, the insurance certificate, and the lease or deed, and confirm they all read identically. Mismatches are the single fastest way to get a package bounced back.

What Happens After You Submit

Once the Division reviews your paperwork, a field inspector from the License and Theft Bureau visits your location. The inspector checks that the salesroom or office meets the 96-square-foot minimum, that your sign meets the three-inch-letter standard, and that the site matches what you described on the form. The inspector also verifies that the location is accessible to Division personnel and suitable for keeping required records.⁶

If the site fails, the inspector tells you what to fix. You can correct the problems and request re-inspection, but the license will not issue until everything passes. When paperwork is complete and the site passes on the first visit, processing typically runs two to four weeks from submission to issuance.

If Your Application Is Denied

The Division sends denial notice by certified mail within 30 days of the decision. From the date of that notice, you have 30 days to request a hearing before the Commissioner of Motor Vehicles. The LT-400 also lists a $45 predetermination hearing fee, which applies if you want to address potential issues before a formal denial.¹ The Commissioner’s decision after a hearing is final at the agency level, but you can appeal to the courts under the North Carolina Administrative Procedure Act, Chapter 150B.⁴

1
North Carolina Department of Transportation. LT-400 NC Dealer License Application
2
North Carolina General Assembly. North Carolina Code Chapter 20 GS 20-286 – Definitions
3
North Carolina General Assembly. North Carolina Code Chapter 20 GS 20-287 – Licenses Required, Penalties
4
North Carolina Department of Transportation. Motor Vehicle Dealer and Manufacturer Regulation Manual
5
North Carolina General Assembly. North Carolina Code Chapter 20 GS 20-288 – Application for License, License Requirements, Expiration of License, Bond
6
North Carolina Department of Transportation. Minimum Dealer License Requirements
7
North Carolina General Assembly. North Carolina Code Chapter 20 GS 20-288 – Application for License, License Requirements, Expiration of License, Bond
8
North Carolina Department of Transportation. LT-409 Dealer Surety Bond
9
North Carolina Department of Transportation. NC DMV Minimum Dealer License Requirements
10
North Carolina Department of Transportation. NC Division of Motor Vehicles Dealer Renewal Packet