How to Get a Dealer License in Ohio
Long Video
How to Become a Licensed Ohio Used
Motor Vehicle Dealer
1. Complete Dealer Application
You must complete an Ohio Used Motor Vehicle Dealer
Application from the Ohio Bureau of Motor Vehicles (BMV).
You may download the form at
www.autodealers.ohio.gov.
The application must be completed correctly and in its
entirety. Mistakes on your dealer application can cause
significant delays in your licensing process. We will
complete a Used Motor Vehicle
Dealer Application in the
next section. R.C. 4517.02 & 4517.05
2. Electronic
Fingerprinting
Before you receive your dealer license
from the registrar of motor vehicles you must be
electronically fingerprinted. Any person whose name has not
been on an Ohio dealer license in the last 12 months must
submit the electronic fingerprinting. Any owner or partner
listed on the application must be electronically
fingerprinted. You must request the fingerprinting location
send an electronic copy to “BMV Dealer Licensing”. For a
complete list of
ingerprinting locations in Ohio visit
the Ohio Attorney General’s Office at
www.ohioattorneygeneral.gov to find an electronic
fingerprinting location near you. Some locations allow you
to walk in but others required an appointment. The price
varies depending on the location that conducts your
fingerprinting. If you do not live in Ohio you must call the
Dealer Licensing Section at 614-752-7636 to obtain your
fingerprint card. Be sure to include
a copy of each
owners fingerprint card in your dealer application packet.
R.C. 4517.05 A.C. 4501:1-3-07
3. BusinessBuilding
You must have a place of business to be used solely for the
purpose of selling motor vehicles. It must be physically
separated from any other business or residence with a
barrier which cannot be moved.
You must have an office on
the display lot/area that has at least 180 square feet. The
office must be kept clean and organized. Your office must
include, at minimum, a desk, three chairs, and one filing
cabinet or similar furnishings to create an environment
conducive to an office and facilitating the storage of
records, all of which must be kept neat & orderly. The
office must have adequate lighting, electrical service,
heating, and ventilation that is safe for a retail office
environment. The building must meet all building and zoning
requirements. BMV Investigators may request documentation to
ensure all zoning requirements have been met. Be sure
the office never becomes a storage area. You must also have
a working landline or cellular telephone that is answered in
the dealership name. Be sure to post the phone number
prominently so your customers can see it. If you ever change
your telephone number you must notify the registrar in
writing. The BMV requires your business meet all local
zoning requirements. Be sure to check your local zoning
ordinances to ensure an automotive business is allowed at
the location you have chosen for your
dealership. R.C.
4517.03 A.C. 4501:1-3-08
4. Display Lot
You must
have a display lot that is at least 3500 square feet. The
display lot can be on the exterior of the building or inside
the building or acombination of both. This retail sales area
must be kept separate from
any wholesale vehicles being
held for resale. The display lot cannot be a driveway and
must be a hard surface such as concrete or gravel. You
cannot allow the accumulation of mud, dust, water, weeds, or
unsightly
conditions on the display lot. Some local
zoning ordinances may require a dealer display lot to be
paved. The lot must meet all local zoning requirements. The
display lot, like your building,
must be separated from
any other business, repair shop, or residence with a
physical barrier. A barrier is a fixture or feature of the
property that distinguishes the display lot or area from
residences or other
businesses, comprised of metal,
brick, stone, concrete, wood, heavy support cable,
landscaping, curbing, or other comparable feature that
creates a distinct space for the display lot. It shall
clearly delineate a separation between a residence or an
unrelated business and the beginning of the dealership's
established place of business. Such separation shall be
properly maintained during the entire period for which a
used motor vehicle dealer's license is held. Separation from
a repair facility is not required if it is owned by each
person on the license.
Your lot and building must
have easy access from the nearest roadway. No dealer shall
use a remote service facility for selling, displaying, or
offering for sale motor vehicles. Used dealers are only
allowed to
display and sell motor vehicles at the
licensed location. Offsite sales activity by used dealers is
prohibited under Ohio laws. R.C. 4517.03 A.C.
4501:1-3-08
5. Dealer Surety Bond
You must obtain a $25,000
dealer surety bond in order to obtain an Ohio Used Motor
Vehicle Dealer's License. The surety bond must be posted
with the Attorney General's office in favor of the State of
Ohio. The
name on the surety bond must match exactly the
name on file with the BMV and as registered with the
Secretary of State.The surety bond is used for replenishing
funds used to compensate retail purchasers of
motor
vehicles. You must maintain your bond during entire
licensure period and mail your original bond to:
Ohio
Attorney General Consumer Protection Section
Attn: TDRF
Unit Surety Bond
30 E Broad Street 14th Floor
Columbus, OH 43215
6. Business Sign
You will need
a permanent business sign that is visible from the public
roadway. The dealership name on the sign must be at least 6
inches or larger and must match the name as registered with
the Secretary of State.
The sign can be mounted on the
exterior of the business building or erected on the display
area and if you have 2 signs at both signs must have 6 inch
letters. Your sign must match the exact name of your
dealership as it is listed on your dealer’s application. If
you are including LLC or Inc on the business sign, those
letters must be at least 6 inches as well. The sign must be
permanent in nature and be clearly visible to the public. A
banner is not an acceptable business sign nor are magnet
boards or handmade cardboard signs. Laminate vinyl letters
on a window are allowed as long as they are not easily
removed. Most printing companies can produce a permanent
business sign at minimal costs. Be sure the letters in the
dealership name are at least 6 inches high and include the
registered name & fictitious/trade name. A.C. 4501:1-3-0
7. Business Photographs
You must send photographs of
your business. The photographs must include the display
lot/area, the physical barrier showing separation, the
inside & outside of the office, the sign with the registered
business name,
including any registered fictitious or
trade names, the posted business hours, the posted business
telephone, and a view of the business from across the
street. You can email the photographs to
dealerphotos@dps.ohio.gov in
JPG format or enclose the
photographs in your dealer application packet. If emailing
the photos, be sure to include your dealership name and the
name
of your county in the subject of the email. Failing
to send the photographs can cause significant delays in the
application process.
8. Business Hours
Business
hours must be prominently displayed near the entrance to the
office. You may post your business hours on the front of the
building, on a window, or on the business sign. The
dealership must be open and staffed during the posted hours
of operation. During business hours the dealership must be
staffed by an owner, partner, president of the corporation,
member
of the LLC, trustee of a business trust, or a
licensed salesperson. If the dealer ever changes the hours
of operation the registrar must be notified in writing. Any
customer must be able to view your vehicle inventory without
an
appointment. A.C. 4501:1-3-08
9. Records
You
must maintain records on all vehicles purchased, leased, and
sold. Records must be stored either via paper or
electronically for a period of at least 3 years. Federal
mandates require some records be kept at least 5 years. You
will review an entire section on exactly what records to
keep later in the course. A.C. 4501:1-3-04
10. Net
Worth
You must have a net worth of at least $75,000 to
obtain an Ohio Used Motor Vehicle license. You must maintain
the net worth during your entire
licensure period. The
State of Ohio wants to ensure each dealer financially secure
before
being issued a dealer’s license. If requested, you
must provide documentation, such as a financial disclosure
statement, to prove your net worth to the Ohio Bureau of
Motor Vehicles. This documentation would only be required
upon request. A.C. 4501:1-3-11
11. Apply for Ohio
Vendors Number
Before you apply for your dealer’s license
you must have an Ohio Vendors number. This number will be
necessary for you to report the sales tax you collect on the
vehicles you sell. You can apply for an Ohio Vendor Number
through the Ohio Business Gateway at
http://business.ohio.gov/efiling/help/create/ or
you can apply for your Vendor Number through the County
Auditor where your dealership is
located. We will cover
the application for Vendors Number and collection of sales
tax extensively later in the course. R.C. 4505.06
12.
Register Business Names with Ohio Secretary of State
You
must register your business name & fictitious or trade name
with the Ohio Secretary of State’s office and include copies
of each registration with your dealer application. Sole
Proprietors & Partnerships are excluded. The Ohio
Secretary of State wants to have a record of every business
that is operating the in the state. Registering your
business with the Secretary of State is covered in greater
detail later in the dealer
manual. For additional
information on registering your business you may contact the
Ohio Secretary of State at 614-466-2655.
13. I-9
Employment Eligibility Verification
The Employment
Eligibility Verification Form I-9 is a U.S. Citizenship
Immigration Services form. It is used by an employer to
verify an employee's identity and to establish that the
worker is eligible to accept
employment in the United
States. You can find the form at
www.uscis.gov You must
complete this form and store a copy of the form at the
dealership
location.
14. Federal Employee
Identification Number (FEIN)
Before mailing your dealer
license application packet you must create a Federal
Employee Identification Number which is also known as a
Federa Tax ID Number or FEIN. This number is used to
identify the new business you are starting and will be
needed for tax purposes. Obtaining this number is a very
quick and easy step that will only take a few minutes.
You can easily apply at
http://www.irs.gov or directly at
https://sa.www4.irs.gov/modiein/individual/index.jsp
and have your new Federal Employee Number in a matter of
moments. After you have been assigned your FEIN be sure to
include it on your dealer license
application. We will
cover this process extensively later in the course.
15. Dealer Educational Class
Any person applying for an
Ohio used motor vehicle dealer’s license that has not held a
dealer license in the past 2 years are required to take 6
hour dealer educational course. You must attend the training
within the 6 months prior to your application. You will
receive a Certificate of Completion at the end of the class.
Be sure to enclose the certificate in
your dealer
application packet. R.C. 4517.05
16. Physical Lot
Inspection
The BMV wants to make sure that you have met
all of the physical requirements which includes the office
building located on the display lot, desk, chairs, filing
cabinet, lighting & heating, display lot, displayed
telephone number and office hours, etc. Shortly after you
receive your license, BMV Investigation personnel will
inspect your lot. The BMV Investigator will normally contact
you prior to the inspection. All
requirements must be met
before applying for a dealer’s license. When you fill out an
application for a used dealer’s license you must affirm that
all requirements are met. Affirming and signing the
application when requirements are not met is probable cause
for a conviction of falsification.
No inspection will be
conducted until all photos are received.