New Dealer Checklist

Steps to Starting Your Dealership

This section provides a check-list and roadmap for starting your dealership, namely the paperwork expectations, and the place of business or service center inspection. As with starting any business, you must have your business name approved, register your business, get your FEIN and Utah Sale Tax number. Details of how to do this are below.

License Application Forms

The Utah Tax Commission has a straightforward document, TC-300, that lists all of the steps to obtaining your dealer license. This section just explains some steps in more detail. If you have not already started, you will want to start “The Paper Chase” processes as soon as possible. Obviously, it may take time to get approved for a bond, complete construction on a dealership, or sign franchise agreements.

Here are a list of forms that are required for your dealer license, which are described in Form TC-300:

1. Dealer Education: Each person involved with the dealership as an owner, partner, corporate officer, or member must attend an eight-hour training seminar.
2. Application for Dealer License, Form TC-301;
3. FBI Fingerprint Card and Fingerprint Waiver for each owner, corporate officer, or member, Form TC-465;
4. Photos of each applicant about the size of a passport photo;
5. A notarized corporate surety Bond completed by you and the bonding company, Form TC-450, The Company name on the bond must match TC-301;
6. Photo of the dealership location, which must show its sign;
7. Secure a sales tax number Form TC-69, which can be mailed or delivered to the Tax Commission in Salt Lake City;
8. You will receive an electronic certificate after completing this training, which you will submit with the application.
9. A check or money order made payable to “Utah State Tax Commission” for the applicable fees:
   • New car dealer license: $127
   • Used car dealer license: $127
   • Dealer plates: $12 each PLUS the $2.50 handling fee.

Note that MVED will not license dealers with similar names to avoid public confusion. Therefore, approve your name with them first. Then, your business name must be filed with the Department of Commerce before registering your business.

Place of Business Inspections

After MVED receives your application, they will send someone for an on-site inspection, which is described in Part Two - The Location in TC-300. The inspection reviews whether the location and signage complies with all laws and zoning. Vehicle-related business may only take place at licensed locations.
* This takes five to ten working days after receiving the application. It will take a few days to receive your license after passing the location inspection.

The inspection must be done prior to receiving your license. It takes five to ten working days for the inspection. Then, if you pass the inspection, your dealer license will arrive within three to five working days.

The following are main features of the inspection as described by Utah code:

• The dealership:
  • Cannot share any common area with any other business;
  • Is devoted exclusively to the sale of motor vehicles and business related to it; and
  • Must be contiguous, meaning that a person must not be required to pass through another business' area to get to your dealership.

Make sure that your showrooms comply with the Americans With Disabilities Act (ADA). This was enacted in the 1990s and is common knowledge, so you likely already comply.

• The display area must be:
  • Large enough for at least three vehicles; and
  • Bound by fence, chain, posts or otherwise marked to indicate its boundaries.
• The office structure:
  • Must be a permanent, enclosed building; and
  • Must provide a safe place to keep business records.
• The signage is required at the place(s) of business, and must:
  • Be 24 square feet in size or more;
  • Either be painted or permanently attached to the dealership, or cemented in the ground;

    * Banners are only allowed if permanently affixed to the building or sign cemented into the ground.

  • Display the type and number of licenses; and
  • Show the full name of the dealership.