Florida Dealer License Training Podcast
Find out more about Florida Dealer Licensing at FloridaDealer.com
To obtain a Florida dealer license you need a $25,000 Used Motor Vehicle Dealer Bond (Used) and the "Obligee" must be the Florida Department of Highway Safety and Motor Vehicles
Get Your Free Florida Dealer Bond Quote from Delus Johnson
To find out how to get an Florida Dealer License, you can call the Florida Department of Highway Safety and Motor Vehicles at 850-617-3003 or follow these step by step Florida Dealer License instructions.
In order for you to start your application process of a Florida Dealer License, you must download a Florida Dealer License Application Form HSMV 86056. You can call 850-617-3003 to have Florida Dealer License Application Form HSMV 86056 mailed to you or you can download your Florida Dealer License Application here
You must have a business building before you are granted a Florida Dealer License. You must have an office with appropriate office furniture. Your business location cannot be a residence. You must store all of your official Florida Dealers License records at this location. You will need to keep records of all sales and be ready to produce these records to any official with the State of Florida that is conducting an official records inspection. You may have your Dealer License records inspected at any time and the records must be located at your business at all times. You must prove to the state that you own or lease the business. Proof of ownership or a copy of your lease must be provided with your Florida Dealer License Application. You dealership must be the primary business at your licensed location.
To obtain a Florida dealer license you need a $25,000 Used Motor Vehicle Dealer Bond (Used) and the "Obligee" must be the Florida Department of Highway Safety and Motor Vehicles. You must provide the State of Florida with a Florida Dealer Surety bond in the amount of $25,000 or an irrevocable letter of credit before obtaining your Florida Dealer License. Dealer bonds and irrevocable letters of credit are designed to protect Florida motor vehicle buyers from fraudulent dealers. If you are a dishonest Florida dealer your customers can file a financial claim against your Florida dealer bond or irrevocable letter of credit. If you operate your Florida dealership with the highest ethical standards and disclose all mechanical flaws to your customers before the sale, you should never have to worry about financial claims against your Florida Dealer bond or irrevocable letter of credit.
Get a Free Dealer Surety Bond Quote from Delus Johnson
Before you are granted a Florida Dealer License, you must show the State of Florida that you have an active Florida Dealer Garage Insurance Policy. Florida Dealer insurance will protect your customers when they are taking your demonstration units for a test drive. It is a very specialized insurance that must be carried by every Florida Dealer. If you are a non franchised Florida dealer selling used vehicles you will need $25,000 combined single limit coverage, $25,000 property damage coverage, and $10,000 personal injury protection. If you are a franchised Florida Dealer selling new motor vehicles you will need $25,000 combined single limit liability coverage including bodily injury and property damage with $10,000 of personal injury protection. Obtain your Florida Dealer Insurance by clicking here.
Before you are issued a Florida Dealers License you must register your business name with the Florida Secretary of States Division of Corporations. The Florida Secretary of State wants to know every business that is operating within the State of Florida. You may file articles of incorporation or just do a simple fictitious name registration. Be sure to consult with an attorney that specializes in Florida Motor Vehicle laws to find out what type of business registration is best for your dealership. You can file your business names at www.sunbiz.org. Be sure to include proof of registration with your Florida Dealer License Application packet. If you incorporate your Florida dealership you must include the Florida Articles of Incorporation with your FL Dealer License application packet.
All dealers must attend the state mandated Florida Dealer Educational course before you are granted a Florida Dealer License. The Florida Dealer Class is a two day course that will last a total of 16 hours. In your Florida Dealer Class you will learn about Florida motor vehicle dealer laws, Federal dealer compliance, how to report sales, etc. Approved Florida Dealer License providers are listed below. Be sure to include your FL Dealer Class Certificate of Completion in your dealer application packet.
Get a Free Dealer Surety Bond Quote from Delus Johnson
Advanced Dealer
Training Institute 1656 Linda Lou Drive West Palm Beach, Florida 33415 888-791-9511 561-791-9511 800-607-4926 www.mvdti.com Florida Auto Dealer School 6822 22nd Avenue North, PMB # 117 St. Petersburg, Florida 33710 866-884-0549 -727-538-5047 www.F-A-D-S.com Dealer Consulting Services, Inc. 7537 NW 7th Avenue Miami, Florida 33150 305-758-9321 954-615-2332 www.dcsmiami.com |
Fast
Compliance, LLC 6000 Metro West Blvd. Suite 200 Online Classes only Orlando, Florida 32835 407-299-1800 1-800-942-4537 www.fastcompliance.com Florida Dealer Schools, Inc. 7880 West Oakland Park Boulevard, Suite 304 Sunrise, Florida 33351 Sunrise: 954-615-2332 Tampa: 813-322-3790 West Palm Beach: 561-961-1465 Orlando: 407-648-4030 www.floridadealerschools.com |
You must apply for and obtain a Florida Sales Tax Number before you obtain your Florida Dealer License. You can download complete Florida Sales Tax instructions here.
You show the State of Florida that you have a Federal Tax ID Number. Applying for a Federal Tax Identification Number is free and can be done at www.taxformw9.com. Be sure to include your Federal Tax Identification Number with your Florida Dealer Application
The State of Florida requires you to follow all Federal Dealer Compliance issues. Learn about important Federal Compliance in your ADTA Dealer Ethics, Profit, and Compliance manual.
You must submit fingerprint cards before you get your Florida Dealers License. The State of Florida wants to make sure you have no substantial criminal history before you obtain an FL Dealers License. You can obtain fingerprint cards at any Florida Department of Motor Vehicles office. Click here to locate a Florida DMV Office near you.
Get a Free Dealer Surety Bond Quote from Delus Johnson
The State of Florida charges Florida dealers to pay a $300 Florida State Dealer License fee for each main location. You should call 850-617-3003 before sending in your Dealer Application to make sure you are writing your check for the correct amount. Incorrect fees can lead to extensive delays in obtaining your Florida license. Make you checks payable to DHSMV.
When you have completed all the steps above be sure to call 850-617-3003 to make sure you are including all the correct documents and license fees. Then mail your completed Florida Dealer License Application, license fees, original surety bond or irrevocable letter of credit, copy of proof of ownership or lease, copy of Florida dealer training certificate of completion, copy of fictitious name registration and/or articles of incorporation, copy of corporate papers if incorporated, Florida sales tax number, Federal Tax ID number, and fingerprint cards to:
Florida Department of Highway Safety and Motor Vehicles
Dealer Licensing Section MS 65
Neil Kirkman Building A312
2900 Apalachee Parkway
Tallahassee, FL 32399
Get a Free Dealer Surety Bond Quote from Delus Johnson
If you want to obtain an Florida
Dealers license all you need to do is submit a dealer
application to the Florida Motor vehicle Division, obtain a
dealer surety bond form an insurance agency or bonding
company, submit your fingerprints, have a building and lot,
if you are a wholesale dealer you will not need a lot, post
a sign on you building and submit some photographs, register
your business with the Florida Corporation Commission, and
have a computer and internet access, I am going to show you
how to easily obtain your Florida dealers license.
First I want to show you some valuable contact information
for Florida Dealers, Florida dealers are regulated by the
Florida Department of Highway Safety & Motor
Department of Highway Safety & Motor Vehicles
2900 Apalachee Parkway
Room A312
MS# 65 Neil Kirkman Building
Tallahassee, Florida 32399
Dealer Licensing Information
850-617-3003
dealerservices@flhsmv.gov
www.flhsmvgov
There are several types of dealers licenses in Florida, here
are the different type of Florida dealer licenses you have:
Vehicle Franchised dealer: Allows a licensed dealer to sell
new motor vehicles under an established agreement with a
manufacturer, importer or distributor.
Service facility: Any franchised dealer wishing to operate
their service and repair facility at a location other than
their licensed dealership must also be licensed to operate
the service only facility. No vehicle sales, new or used,
are permitted at this facility.
Vehicle Independent dealer: Allows the licensed dealer to
buy, sell or deal in used motor vehicles.
Vehicle Wholesale dealer: Allows the licensed dealer to buy,
sell or deal in motor vehicles only at wholesale with other
licensed dealers. A licensed wholesale motor vehicle dealer
is licensed to engage eclusively in the business of buying,
selling or dealing in motor vehicles at wholesale or through
motor vehicle auctions.
Vehicle Auction dealer : Allows licensed auction dealers to
sell motor vehicles and recreational vehicles by the bid
process where buyers are licensed motor vehicle dealers.
Auctions that plan to sell motor vehicles at retail are
required to be licensed as an independent dealer with a VI
prefi license
Salvage dealer: Allows a licensed salvage dealer to engage
in the business of acquiring salvaged or wrecked motor
vehicles for the purpose of reselling them, or for parts.
Mobile home dealer : Allows licensed mobile home dealers to
buy, sell or deal in mobile homes. Mobile home dealers may
also sell recreational vehicles after applying for a
recreational vehicle endorsement on their license with
FLHSMV.
Mobile home broker (BH): Allows a licensed mobile home
broker to deal eclusively in used mobile homes and act as
the agent or intermediary on behalf of the owner or seller
of a used mobile home which is for sale, or who assists or
represents the seller in finding a buyer for a used mobile
home.
Recreational motor vehicle dealer (RV): Allows a licensed
recreational vehicle dealer to engage eclusively in buying,
selling or brokering new recreational vehicles.
Recreational used motor vehicle dealer (RU): Allows a
licensed recreational vehicle dealer to engage eclusively in
buying and selling used recreational vehicles. information.
I want you go in depth in the 7 Steps to an Florida Dealers
License
Step 1-Complete Application
The first thing you need to do to obtain an Florida dealers
license is to complete an Florida dealer license application
in it’s entirety. Submit Dealer Application Form 86056
If you make mistakes on the application it will be returned,
so you want to spend some time and ensure there are not
mistakes on the application.
A separate application must be submitted for each type of
license, entity change, change location or name change,
branch or subsequent dealer license.
If there is a change in business entity, after you become a
licensed dealer, a new application must be submitted with
all applicable paperwork, including a new bond and a new
dealer license number will be assigned.
You can download your application at the
https://www.flhsmv.gov/pdf/forms/86056.pdf lets
take a look at an Florida dealers license application:
Step 2 Dealer Surety Bond or Irrevocable letter of credit
You must obtain a dealers surety bond in order to obtain an
Florida dealers license. The bond must be a surety bond
eecuted by an insurance or bonding company authorized to do
business in Florida, and must be in the amounts shown the
table below.
You can obtain a dealer surety bond form a bonding company
or possibly your insurance agent you can obtain an
rrevocable letter or credit from a bank.
And here you see form 86057 the irrevocable letter of credit
which can be taken to your bank
Step 3-Insurance
You must show the state of Florida that you have insurance
BEFORE the state will issue you a Florida dealers license.
The state of Florida requires every motor vehicle driven on
any roadway to be insured, including your demos and all
service vehicles owned by the dealership. It is illegal to
drive any motor vehicle in Florida without proof of
insurance or financial responsibility. It is also illegal
for any motor vehicle owner, such as a dealer, to allow
anyone else to drive the owner's vehicles, such as your
demos, without insurance.
Dealer insurance is a special type of business insurance
that is quite unique in that it covers you when your
customers are test driving your vehicles, it covers you, or
an employee driving a vehicle back & forth from an auction,
and it also covers you if someone is injured while on your
lot.
Types of Dealer Insurance
Dealer Liability or Garage Liability
• If you customer wrecks your demo into another vehicle, it
will cover the other vehicle, not your demo because it is
liability only
Dealers Open Lot
• Full coverage for your inventory if your vehicles are
damaged by wind, natural disaster, and sometimes hail. It
will also cover you in cases of theft. Be sure to carry
enough coverage for your inventory
ance policy coupled with a business automobile policy, which
shall include, at a minimum, $25,000 combined single-limit
liability coverage including bodily injury and property
damage protection and $10,000 personal injury protection.
Any dealer in Florida that does not maintain financial
responsibility on services vehicles, drives a demo or allows
a customer to drive a demo without financial responsibility,
could face penalties.
Step 4 FEIN and Florida Ta ID Number
Before you apply for your Florida Used Motor Vehicle License
you will need to apply for a Federal Employment
Identification Number, sometimes referred to as a Ta ID
Number, FEIN, or EIN. This is the number the Internal
Revenue Service uses to identify your business for ta
purposes. You can apply for your EIN for free at www.irs.gov
or via phone at 800-829-4933. When you obtain your EIN, you
will need to record it in a safe place.
You will also be required to easily apply for a Florida
Sales Ta License at the Florida Deparment of Revenue Website
Step 5-Fingerprints
In order to be granted an Florida dealers license you must
pass a background cheick that is conducted when you obtain
your fingerprints. Each partner and each applicant who owns
20% or more of the dealership and when obtaining a dealers
license for the first time must provide a personal history
form and fingerprint card to enable the State to conduct a
criminal records check.
If you are not sure where to get your fingerprints you can
go to google and search for Florida Fingerprinting and you
will see several fingerprinting locations that are probably
within 10 minutes of your home
.
Step 6-Building & Lot
You must have a building for your Florida dealers license.
Your business building must be a permanent enclosed building
owned or leased by you, if you are leasing the building you
will be using the lease must be for at lease 6 months, your
lease can never end before you dealers license epires. with
sufficient space to display vehicles of a kind of vehicle
you will be selling. The established place of business must
be devoted mainly to the operation of your dealership
Whether you are a retail dealer or a wholesale dealer you
must meet local zoning requirements. You can contact the
city hall or county court house’s planning a zoning division
to ensure the location you want to use as your dealership
meets all local zoning requirements for an Florida Dealers
license. Applicants should contact their local city or
county office to ensure compliance with local zoning
ordinances. All owners listed on a wholesale dealer license
are required to be an Florida Resident and have an Florida
Driver’s License or ID
Step 7-Registering your Business with the Florida Secretary
of State
The Florida Secretary of State wants a record of every
business operating in the State including the dealership you
are getting ready to open. Before you apply for your Florida
dealers license you must register your business with the
Florida Secretary of States office.
Step 8 Business Sign & Photos
You must have a sign The sign must be permanently erected on
the ground or permanently attached to your business
building.. banners will not be accepted
You must also enclose photographs of your building including
photos of the business, sign, display lot, all 4 sides of
building, posted address & hours, office area,
Step 9-Dealer Training Class
Once you obtain your Florida dealers license you must
display the license prominently, you are going to work hard
to obtain your Florida dealers license, you are going to be
proud
Download Florida Dealer Application
Download $25,000 Bond Application
Florida Irrevocable Letter of Credit
Step by Step Florida Dealer Licensing Instructions