How to Get a Dealers License in Utah: Bond, Forms, and Fees

To get a dealer’s license in Utah, you apply through the Motor Vehicle Enforcement Division (MVED) of the State Tax Commission: pick the dealer category that matches what you want to sell, post a corporate surety bond of $10,000 to $75,000, complete an eight-hour orientation course, submit Form TC-301 with fingerprints and background checks for every owner and officer, set up a business location that meets Utah’s place-of-business standards, and pass an onsite MVED inspection.{¹}{²} You cannot buy and sell vehicles as a business until the license is in hand.

Pick the Right License Category

The category you choose determines what you can sell, so decide this first. Utah issues separate licenses for:

New motor vehicle dealer: new and used vehicles, trailers of 2,000 pounds or more, dismantling, and body shop operations.
Used motor vehicle dealer: the same privileges, limited to used vehicles.
New motorcycle and small trailer dealer: new and used motorcycles, snowmobiles, off-highway vehicles, and trailers with an unladen weight of 750 to 1,999 pounds.
Used motorcycle and small trailer dealer: the same scope, used only.
Special equipment dealer: vehicle types outside the passenger car and motorcycle categories.
Dismantler: taking vehicles apart for parts resale, salvage, or sale to a crusher or another dismantler.
Manufacturer or remanufacturer: building or reassembling vehicles subject to registration and issuing VINs.

Most people opening a traditional car lot apply for the new or used motor vehicle dealer license. If you intend to sell only to other licensed dealers, Utah recognizes wholesale motor vehicle auctions as a separate operation.{³}

Post Your Surety Bond

MVED will not issue a license until you have filed a corporate surety bond with the division. The bond protects consumers from dealer misconduct, and the required face amount is set by statute:

Motor vehicle dealer (new or used): $75,000
Special equipment dealer: $75,000
Motorcycle, off-highway vehicle, or small trailer dealer: $10,000
Body shop: $20,000

The bond has to come from a corporate surety; a personal guarantee will not qualify.{²} You pay an annual premium to the surety rather than the full face value out of pocket. Premiums typically run from about 1% to 15% of the bond amount depending on your credit, so a $75,000 motor vehicle dealer bond with good credit might cost roughly $750 to $3,750 per year.

Work Through the Application

Utah uses a layered application. Each piece has to be in the packet, verified, and filed with MVED at 210 North 1950 West, Salt Lake City, UT 84134. An incomplete packet gets rejected.

Complete Form TC-301

Form TC-301, the Bonded Motor Vehicle Business Application, is the core document. Fill it in with your legal business name as registered with the Utah Department of Commerce, your Federal Employer Identification Number, and your ownership structure, whether sole proprietorship, LLC, partnership, or corporation.{⁴} Check with your city or county too, because local business licensing runs in parallel with the state process.

Finish the Eight-Hour Orientation

Every owner, partner, corporate officer, or LLC member listed on the application must complete an eight-hour training seminar before MVED issues the license. The course covers Utah motor vehicle regulations, consumer protection obligations, and transaction disclosure requirements, and it is available online. Submit the signed original training certificate or web training printout with your packet.{⁵}

Submit Fingerprints and Background Checks

Each owner, partner, LLC member, and corporate officer submits a standard fingerprint card filled out and verified by a local law enforcement agency, along with Form TC-465, the Fingerprint Waiver authorizing the Bureau of Criminal Identification to share results with MVED. The fingerprint submission fee is $20 per person with the application, plus a $30 BCI processing fee per person. A disqualifying criminal history can result in denial.{⁵}

Get a Sales Tax License

You must show proof of a valid sales tax license for motor vehicle sales. If you do not have one, file Form TC-69 (Utah State Business and Tax Registration) with the State Tax Commission. MVED can provide the forms.{⁵}

Line Up Insurance

Your packet needs proof of dealer plate insurance. A garage liability policy is the standard coverage. Most dealers also carry inventory coverage, uninsured motorist coverage, and garagekeepers coverage if they do repairs or body work. Have your declaration pages ready to file with the application.{⁵}

License Fees

MVED publishes a straightforward fee schedule. The main application-stage costs:

New motor vehicle dealer license: $127
Used motor vehicle dealer license: $127
New motorcycle, off-highway vehicle, or small trailer dealer: $51
Used motorcycle, off-highway vehicle, or small trailer dealer: $51
Dealer plates: $12 each ($10.50 at renewal)
BCI fingerprint fee: $30 per owner, partner, or corporate officer

Checks are made payable to the Utah State Tax Commission.{⁶}

Set Up a Compliant Place of Business

Your location has to be ready before MVED will schedule the final inspection, and this is where plenty of applications stall. Utah law requires every dealer to maintain a principal place of business that complies with all local ordinances, including zoning, and is devoted exclusively to motor vehicle commerce. The site cannot share common space with another dealer, auction, dismantler, or any unrelated business.{⁷}

You need a permanent, enclosed building large enough for the dealership office and a secure place for business records. Outside, you need display space for inventory that does not encroach on public rights-of-way or neighboring properties. A permanent sign at least 24 square feet in size must identify the business by its full licensed name and show the dealer or license number. The sign must be painted on the building, bolted to it, or placed on posts securely anchored in the display yard.{⁷}

Dealers also have to keep records at the principal place of business for five years, covering every vehicle bought, sold, exchanged, or accepted for sale, along with buyers’ orders, contracts, odometer statements, temporary permit records, and financing documents. Electronic records are acceptable. Peace officers and MVED employees may inspect at any time.{⁸}

Pass the MVED Inspection

Once your packet and fees are complete, an MVED investigator schedules an onsite visit. The investigator verifies that the sign meets size and placement rules, that the office is properly separated from unrelated businesses, that records storage is secure, and that the display area is adequate. If everything checks out, MVED issues the license. You can then buy dealer plates, which let you transport inventory and offer test drives on Utah roads.{⁵}

Salesperson Licenses for Your Staff

The dealer license covers the business. Anyone who sells vehicles at the dealership needs an individual salesperson license, and a salesperson may work for only one dealer at a time, with the exception of employees at wholesale motor vehicle auctions, who may work for more than one auction at a time.{⁹} The salesperson application requires a completed fingerprint card and Form TC-465 waiver. The license fee is $31 plus $30 for the background check.{¹⁰} Hiring someone without confirming they hold a current salesperson license exposes the dealership to civil penalties for assisting an unlicensed salesperson.

Renewal and Continuing Education

All Utah dealer licenses expire on June 30 each year. The renewal window runs April 1 through June 30, and missing it means the license lapses. If a dealer or salesperson license has been expired 18 months or more, the applicant must resubmit fingerprints, a fingerprint waiver, and the $30 BCI fee with the renewal.{⁶} Renewal also requires a three-hour continuing education course, available online, and at least one representative of the dealership must complete it each year.

Federal Rules That Apply the Day You Open

Your Utah license is only the state side. Two federal rules bind every dealer from the first sale.

The FTC Used Car Rule requires a Buyers Guide on the window of every used vehicle on the lot. The guide lists make, model, year, and VIN and states the warranty status: “as is,” dealer warranty with specific coverage terms, or a continuing manufacturer’s warranty. It also tells buyers they can have a mechanic inspect the vehicle and should obtain a vehicle history report and check for open safety recalls. Removing the Buyers Guide before purchase, except for a test drive, violates 16 C.F.R. 455. Sales conducted in Spanish require a Spanish-language version.{¹¹}

IRS Form 8300 covers cash. Any cash payment over $10,000, whether in one transaction or in installments totaling more than $10,000 within a year, must be reported to the IRS within 15 days of receipt. If the 15th day falls on a weekend or holiday, the deadline moves to the next business day.{¹²}

What Happens If You Operate Without a License

Operating as a dealer without a license is a class A misdemeanor, and each additional vehicle sold without a license during a 12-month period counts as a separate violation.{} After licensing, Utah enforces its rules through a three-level civil penalty system, with Level III fines reaching $5,000 for repeat offenses like operating without a principal place of business, selling from an unlicensed location, or assisting an unlicensed dealer. Forging or counterfeiting a license, dealer plate, temporary permit, or any document issued by the division is a third-degree felony.{¹³}

1
Motor Vehicle Enforcement Division. MVED Home
2
Utah Legislature. Utah Code 41-3-205 – Licenses, Bonds Required, Maximum Liability
3
Utah Tax Commission. Motor Vehicle Business License Information
4
Utah State Tax Commission. TC-301, Bonded Motor Vehicle Business Application
5
State of Utah. Dealer License
6
DMV: Business License Fees. Business License Fees
7
Tax Commission. Places of Business
8
Utah State Tax Commission – Motor Vehicle Enforcement Division. Business Records
9
Utah Legislature. Utah Code 41-3-202 – Licenses, Classes and Scope
10
DMV. Salesperson License
11
Federal Trade Commission (FTC). Buyers Guide Requirements and Content
12
Internal Revenue Service. IRS Form 8300 Reference Guide
13
Utah Legislature. Utah Code 41-3, Part 7 – Penalties