12 Steps to an Ohio Dealers License
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
http://autodealers.ohio.gov/index.aspx 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 your dealer class to ensure it is
completed correctly.
2. Register Business Name with Ohio Secretary of
State
Any entity planning to
transact business in Ohio must register with the Ohio
Secretary of State’s office. 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
including the dealership you are about to open. Registering
your business with the Secretary of State is covered in
greater detail in the dealer class. For additional
information on registering your business you may contact the
Ohio Secretary of State at 614-466-2655.
3. Apply for Ohio Vendor
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. We will show you how to
apply for an Ohio Vendor Number in your dealer training
course. We will take you through the entire vendor number
application process.
4. Electronic Fingerprinting
Before you receive your dealer license from the registrar of
motor vehicles you must be electronically fingerprinted. For
a complete list of fingerprinting locations in Ohio visit
the Ohio Attorney General’s Office at
www.ohioattorneygeneral.com 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.
5. 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 Federal Tax ID Number or FEIN. This is a
very easy step that should only take a few minutes. This
number is used to identify the new business you are starting
and will be needed for tax purposes. You can easily apply at
http://www.irs.gov
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 which we will
complete in class.
6. 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. Sole proprietors are exempt.
7. Business Building
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 permanent barrier which cannot be moved. You must
have a permanent office in the building that has at least
180 square feet. Your office must include, at minimum, a
desk and three chairs. You must also have at least one
filing cabinet. The office must have permanent lighting and
heating. You must also have a working telephone that is
answered in the dealership name. Be sure to check your local
zoning ordinances to ensure an automotive business is
allowed at the location you have chosen for your dealership.
We will discuss building requirements extensively in class.
8. Display Lot
If you will only have 10 or less
vehicles for retail sale you may have sufficient retail
space for 10 or less vehicles. If you will have 11 or more
vehicles for retail sale you must have a display lot that is
at least 3500 square feet. The display lot, like
your building, must be separated from any other business,
repair shop, or residence with a permanent physical barrier.
This is required to deter any vehicles from a neighboring
business or residence from parking on the dealership display
lot. You are allowed to have an additional display in
addition to your main display lot which is referred to as an
expanded display lot. Your expanded lot must be have at
least 2000 square feet of space. The expanded display lot
must be within 200 feet of your dealership right of way. All
paperwork regarding the sale of any vehicle must take place
at the dealership building and not at the expanded display
lot. We will cover expanded display lots in detail in your
class.
9. Business
Sign and Photographs
You will need a
permanent business sign. The dealership name must be
displayed in letters on the sign that are at least 6 inches
high or larger. The sign can be mounted on the exterior of
the business building or erected on the display area and
must be prominently displayed. Your sign must have the exact
name of your dealership as it is listed on your dealer’s
application. 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. You must send
photographs of your business. The photographs must include
your display lot, both inside & outside of your office, your
business sign, posted business hours, posted business
telephone, and expanded display lot if applicable. You can
email the photographs to
dealerphotos@dps.ohio.gov in JPG format or enclose
the photographs in your dealer application packet. 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. You must
maintain records on all vehicles purchased, leased, and
sold. Records must be stored either via paper or
electronically at the dealership location. Documents for
electronic titles must be kept at least 5 years. You will
review an entire section on exactly what records to keep in
your dealer training class.
10. Net Worth and $25,000
Dealer Surety Bond
You must have a net worth of at least $75,000
in order to apply for an Ohio dealer license. You must also
obtain a $25,000 dealer surety bond. A surety bond is based
on your credit score. If you have good credit, a $25,000
dealer surety bond should cost about $200 to $250 a year. If
you have a couple of blemishes on your credit score, the
price of you dealer surety bond could go up substantially. It is very
easy to estimate your net worth, just add up all of your
assets then subtract your liabilities. In other words, take
the value of everything you own and subtract your total debt
to find out your net worth. The State of Ohio
wants to ensure each dealer is financially secure before
being issued a dealer’s license. After you receive your Ohio
Used Dealer License you should have no problem maintaining a
net worth of at least $75,000.
11. 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. The Dealer Educational Classes are held
in Cleveland, Cincinnati, Columbus, Dayton, Toledo, and
Akron-Canton. If you have questions about the dealer class
call us at 800-369-2467 or 937-660-3978, view the
Dealer
Class Schedule or
Sign Up For
Your Ohio Dealer License Class Now!
12. Physical Lot
Inspection
After you receive your
Ohio used dealer license, BMV investigation personnel will
conduct a 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. All
requirements must be met before applying for your Ohio used
dealer’s license.
Then Mail or Hand Deliver Your Dealer Application Packet &
License Fees
If you are mailing your
application send it to:
Ohio Bureau of Motor Vehicles
Dealer Licensing Section
P.O. Box 16521
Columbus, Ohio
43216-6521
If you are hand delivering your
application please call the dealer licensing section at
614-752-7636 for instructions.
Ohio Department of
Public Safety 1970 West Broad Street Columbus, Ohio
43223-1101
To ensure you are sending in the correct
fees you may call the Dealer Licensing Section at
614-752-7636.
Congratulations, we will see you soon in your
Ohio Used
Dealer License Class.
Good Luck in Obtaining Your Ohio Dealer License!
We are here to help you start your Ohio Used Motor Vehicle Dealership!
Delus Johnson-Lead Instructor
Automobile Dealer
Training Association