How to Get a Dealer License in Louisiana: Steps, Bond, and Fees

To get a dealer’s license in Louisiana, you apply to one of two state commissions depending on what you plan to sell: the Louisiana Used Motor Vehicle Commission (LUMVC) for pre-owned vehicles, or the Louisiana Motor Vehicle Commission (LMVC) for new vehicles sold under a manufacturer franchise. For a used dealer license, you complete a pre-license educational seminar, set up a business location that meets the state’s physical requirements, post a $50,000 surety bond, carry at least $55,000 in garage liability insurance, and file the initial dealer packet with a $400 licensing fee. A state investigator then inspects your site before the license is issued.

Which Commission Licenses You

The LMVC regulates franchise dealerships that sell new cars, trucks, motorcycles, or recreational vehicles under a manufacturer agreement, under RS 32:1254.¹ The LUMVC handles pre-owned vehicle dealers, and it also licenses salespersons, parts dealers, and vehicle dismantlers.²

The two agencies operate independently with separate forms, fees, and rules. Confirm which one governs your business before you download anything. Most first-time applicants in Louisiana go through the LUMVC, and the steps below follow that path. Where the LMVC differs, it’s noted.

Step 1: Complete the Pre-License Educational Seminar

Before the LUMVC will accept your application, at least one person from the dealership has to complete a pre-license educational seminar. That person can be the owner, a partner, an officer, or the local manager.³ The seminar covers Louisiana motor vehicle law, Office of Motor Vehicles procedures, Department of Revenue requirements, and general compliance obligations.

You’ll receive a certificate afterward, and it has to accompany the application packet. Register early. Seminar dates fill up, and the commission will not accept an application without the certificate attached.⁴ Applicants routinely assume they can file first and take the class later. They can’t. This is the single step that stalls the most applications.

Step 2: Set Up a Compliant Business Location

You must have an established place of business before you apply, and a state investigator will visit it before the license is issued.⁵ The location needs:

A permanent office where business records are kept for inspection. Records must be maintained for at least three years, and both peace officers and commission agents can inspect them during reasonable hours.²
A display area large enough to hold inventory offered for sale.
A permanently affixed sign showing your exact trade name, measuring at least 16 square feet (a 4-foot by 4-foot sign meets the minimum). You’ll submit a photograph of the installed sign with your application.⁶
A business telephone number listed with nationwide directory assistance (411) under your dealership name and address.
Zoning approval for automotive sales, documented on the zoning verification form your local zoning authority signs.⁶

If you’re operating as a corporation, LLC, or partnership, register the business with the Louisiana Secretary of State before applying. The trade name has to be identical across your Secretary of State filing, your surety bond, your sign, and your application. Mismatches delay processing.

Step 3: Get the Surety Bond and Garage Liability Insurance

Every used dealer applicant must post a $50,000 surety bond before the commission will process the application.⁵ New motor vehicle dealers under the LMVC face a lower bond of $20,000.¹ The bond protects consumers: if you violate state law or fail to honor a contract, buyers can recover against it.

You don’t pay the full face value. You pay an annual premium to a surety company, and the premium depends heavily on your personal credit. Applicants with strong credit often pay around 1% of the bond amount. Budget a few hundred to several hundred dollars a year.

The bond must use the exact language provided in the LUMVC’s form and stay active for the entire license period. If it lapses, your license is at risk. Under the LMVC, a lapsed bond triggers immediate suspension, and if a replacement isn’t filed within 30 days, the license is revoked.¹

You also need garage liability insurance of at least $55,000, documented by an Acord Certificate of Liability Insurance filed with your application.⁶ The policy has to cover vehicles offered for sale and any vehicle driven on public roads under your dealer plates. If coverage is cancelled or lapses, your dealer license is revoked as of the cancellation date unless you provide proof of a new policy before that date.⁵ There is no grace period on the insurance requirement.

Step 4: Assemble the Application Packet and Pay the Fees

The LUMVC publishes an initial dealer packet with every form and checklist. Your submission has to include:

The completed dealer application (ownership structure, trade name, federal tax identification number).
A separate salesperson application for every person who will sell vehicles. Salespersons cannot legally sell until the commission has their application and fee on file and issues the license.⁵
The $50,000 surety bond on the LUMVC’s form.
The Acord Certificate of Liability Insurance showing at least $55,000 in garage liability coverage.
The signed zoning verification form.
A photograph of your installed business sign.
The pre-license seminar certificate.

Fees are set as follows:⁷

Used dealer license: $400.
Salesperson license: $25 per person.
Criminal background check: $35 per applicant who has been convicted of or pled guilty to any crime other than a traffic violation within the past ten years.

Check the trade name, addresses, and ownership details on every document against one another before you file. Discrepancies between the application, the bond, and your Secretary of State registration are the most common cause of processing delays.

Step 5: Pass the Site Inspection and Receive Your License

Once the commission has your complete packet and fees, a state investigator schedules a visit to the dealership. The investigator confirms that the office is set up to keep records, the sign meets size and placement requirements, and the display area is functional. If anything fails, you’ll fix it and schedule a follow-up.

After the site passes and paperwork clears, the license is issued for the current calendar year. You can then obtain dealer inventory plates through the Office of Motor Vehicles under RS 47:473, which control which vehicles the plates may be displayed on.⁸ Dealer plates are restricted to inventory and demonstration vehicles. They cannot be used on personal vehicles or service trucks.

Renewing Your License

Louisiana dealer licenses run on an annual cycle. Renewal costs $400 for the dealer license plus $25 per salesperson, and you have to provide a current bond or continuation certificate along with proof of active garage liability insurance.⁵ Late renewal adds a $100 penalty on top of any fines for operating without a valid license.

Used dealers also have to complete a post-license continuing education seminar before each renewal.⁹ It’s separate from the initial pre-license seminar and covers updated laws and compliance reminders. Skipping it blocks renewal.

Selling Without a License

Selling used vehicles in Louisiana without a dealer license is a misdemeanor carrying a fine between $300 and $1,000, up to 90 days in jail, or both.¹⁰ This applies whether you operate a lot or flip vehicles from your driveway, and a conviction can disqualify you from getting a license later.

Federal Rules That Apply From Day One

A Louisiana license makes you legal at the state level. Federal law then adds obligations that apply whether you sell new or used vehicles.

If you sell used cars, the FTC’s Used Car Rule requires a Buyers Guide displayed on every vehicle offered for sale, disclosing warranty status, major systems to watch, and the vehicle’s make, model, year, and VIN. The Buyers Guide information becomes part of the sales contract and overrides conflicting terms.¹¹

Any cash transaction over $10,000, or related transactions that add up past that threshold, requires you to file IRS Form 8300 within 15 days, notify the customer in writing by January 31 of the following year, and keep a copy for five years.¹²

Because dealerships handle credit applications, Social Security numbers, and bank details, the FTC’s Safeguards Rule requires a written information security program with a designated security lead, risk assessment, access controls, encryption, multi-factor authentication, staff training, and secure disposal of customer data no later than two years after last use.¹³ The FTC does not exempt businesses by size, so a small independent lot has the same obligations as a large franchise.

1
Louisiana State Legislature. Louisiana Code RS 32-1254 – Application for License; Requirements for Licensure; Contents; Licenses; Franchise Filings; Exceptions
2
Justia Law. Louisiana Revised Statutes Title 32 RS 32-783 – Used Motor Vehicle Commission; Appointment and Qualification; Terms of Office; Powers and Duties
3
Louisiana State Legislature. Louisiana Code RS 32-795 – Educational Seminars; Authority; Initial License Application Seminar; Renewal Application Seminar; Exceptions
4
Legal Information Institute. Louisiana Admin Code Title 46 V-4402 – Pre-License Educational Seminar
5
Justia Law. Louisiana Revised Statutes Title 32 RS 32-791 – Application for License; Renewal; Fees; Educational Seminar; Bond Requirements; Liability Insurance; Salesperson’s License; Location of Business
6
Louisiana Used Motor Vehicle Commission. Used Dealer License Requirements – Initial Dealer Packet
7
Louisiana Used Motor Vehicle Commission. Fee Schedule
8
Justia Law. Louisiana Revised Statutes Title 47 RS 47-473 – Dealer Inventory Plates
9
Legal Information Institute. Louisiana Admin Code Title 46 V-4404 – Post-License Educational Seminar
10
Louisiana State Legislature. Louisiana Code RS 32-791 – Used Motor Vehicle Dealers
11
Federal Trade Commission. Dealer’s Guide to the Used Car Rule
12
Internal Revenue Service. Form 8300 and Reporting Cash Payments of Over $10,000
13
Federal Trade Commission. FTC Safeguards Rule: What Your Business Needs to Know