Florida Dealer License Requirements: A Step-by-Step Checklist

1. Choose your Dealer License type

Most used-car retailers apply for an Independent Dealer (VI) license. Other classes include Franchise (VF), Wholesale (VW), Auction (VA), Salvage (SD), and Mobile Home (MH/RV). The class you choose determines your bond, location, and inspection requirements.

• VI — Independent: buys and sells used vehicles to the public
• VW — Wholesale: sells only to other licensed dealers
• VF — Franchise: sells new vehicles under a manufacturer agreement

2. Secure a compliant Dealer location

FLHSMV requires a permanent, dedicated place of business that is properly zoned for vehicle sales, with an office, a sign visible from the street bearing the dealer name, and dedicated display space. The location will be inspected by a regional compliance examiner before the license is issued.

• Zoning approval or occupational/business tax receipt from the city or county
• Lease or deed covering at least the license year
• Permanent exterior sign and posted business hours

3. Register the Business and obtain your Tax Numbers

Register the entity with the Florida Division of Corporations (Sunbiz), obtain a federal EIN from the IRS, and register with the Florida Department of Revenue for a sales tax certificate. If you use a trade name, register the fictitious name as well.

4. Pass the Site Pre-Inspection

Schedule a pre-inspection with your FLHSMV regional compliance examiner to confirm the location, signage, and records setup meet state standards before you submit the formal application. Fixing issues at this stage prevents delays and application rejection.

• Confirm office, signage, and display space meet FLHSMV standards
• Prepare a records-retention system for deal jackets and odometer disclosures
• Verify posted business hours and zoning documentation are in place

5. Complete the required Pre-License Course

First-time Independent (VI) and Wholesale (VW) applicants must complete a FLHSMV-approved 16-hour prelicensing course through an approved dealer training school. Renewing dealers complete 8 hours of continuing education every other renewal cycle. Keep the certificate — it must be submitted with the application.

6. Obtain a $25,000 Surety Bond

Florida motor vehicle dealers must file a $25,000 surety bond (HSMV form 86020) or an irrevocable letter of credit with the application. Annual premiums typically run a small percentage of the bond amount and depend on the applicant's credit profile.

7. Carry Garage Liability Insurance

Independent and franchise dealers must show garage liability insurance covering the dealer location and vehicles, plus garagekeepers coverage where applicable. The certificate must name FLHSMV and list the exact licensed location.

8. Fingerprints and background check

Every owner, officer, director, and partner must submit electronic fingerprints through an FLHSMV-approved Livescan vendor for a state and federal criminal background check.

9. File the application and pay fees

Submit HSMV form 86056 (Application for a License as a Motor Vehicle, Mobile Home or Recreational Vehicle Dealer) to your FLHSMV regional office with all supporting documents. Budget for the initial license fee, each supplemental location, the electronic filing system enrollment, and your dealer license plates.

10. Open compliantly

Once licensed, you must maintain deal jackets, odometer disclosures, FTC Buyer's Guides, temporary tag inventory, and meet the Electronic Title & Registration 30-day title transfer mandate. Keep your bond, insurance, and continuing education current for each renewal.