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Indiana Dealer License

Indiana Dealers Licenses are granted by the Indiana Dealer Services Division a department of the Indiana Secretary of State in Indianapolis, Indiana.

To find out how to get an Indiana Dealer License, you can call the Indiana Dealer Services Division at 317-234-7190 or email them at dealers@sos.in.gov, or follow the Indiana Dealers License steps below.

Indiana Dealers License Requirements

Order or Download Indiana Dealer License Application

In order for you to apply for an Indiana Dealers License you will be required by the Indiana Dealer Services Division to obtain an Indiana Dealer License Application. You can call 317-591-5303 to have an Indiana Dealer License Application sent to you or you can download an Indiana Dealer License Application here. After you obtain your Indiana Dealer License you can enter every Indiana Dealer Auction or any Dealer Auction in the United States. Be sure to order the ADTA Dealer Ethics, Profit, and Compliance Manual to stay in full Federal compliance.

Indiana Dealers Place of Business

The IN Dealer Services Division requires you to have an established place of business before being granted an Indiana Dealer License. Your place of business must have an Indiana address or PO Box. A second business may not be operated out of the same business building unless it is closely related to the sale of motor vehicles such as a tire shop, repair shop, or towing company. If a second business is operated from the same building the income from the second business may not exceed fifty percent of the dealership's income. The IN Dealer Services Division does not allow two separate Indiana Dealers Licenses to be located in the same building. Each Indiana Dealer License must have it's own separate address. The place of business must have at least 1300 square feet and must be able to display 10 or more vehicles of the type that you will be selling. Your display lot must be well lit and surfaced with concrete , pavement, or rock. Your place of business can be located in a a strip mall, garage, or a residence if a separate entrance is maintained, a separate address is maintained, local zoning requirements are not violated, and the building is not attached to the residence. You may have an IN Dealers License at your home address if the display area is not attached to the main living area. You must have an office with at least 100 square feet that must contain office furniture, lighting, heat, and a business telephone.

Click here for a Indiana Dealer Insurance!

Business Photograph

You must include a business photograph of your business before you are issued an IN Dealers License. Your photograph must contain your  lot, sign, and building. The photograph must be at least three by five inches so it can fit in your dealer file in Indianapolis. Be sure to step back far enough so your photograph contains your lot, sign, and building. If the photograph lacks something, your Indiana Dealer License Application may be rejected.

Business Sign

The Indiana Dealer Services Division requires you to post a business sign on your building before you are granted a Indiana Dealer License. The sign must be permanent in nature and must contain the name of your dealership prominently, along with your official hours of operation and phone number.

Indiana Dealers Hours of Operation

When you obtain your Indiana Dealer License the Indiana Dealer Services Division will require you to staff your dealership a minimum of 30 hours a week. You must staff the dealership a total of 30 hours per week, or you may staff the dealership 20 hours per week if you are available at your posted phone number for 10 hours a week.

In Good Standing With State of Indiana

You must be in good standing with the Indiana State Police Department, the Indiana Department of Revenue, and the Indiana Bureau of Motor Vehicles. In order to obtain an Indiana Dealer License you may not have a warrant for your arrest or owe the State of Indiana any taxes.

Local Zoning Board Approval

Your Indiana Dealer License Application must be signed by a member of your local zoning board. Just call your City or County Zoning board to set up an appointment to sign your application to make sure your dealership meets all zoning requirements. After your Indiana Dealer License Application is signed you will be able to obtain your Indiana Dealer License.

Apply for Federal Tax Identification Number

The State of Indiana requires you to apply for a Federal Tax ID Number before you obtain your Indiana Dealer License. Filing for your Federal Tax ID Number is free and can be done at www.taxformw9.com Be sure to include your new Federal Tax ID Number on your Indiana Dealer License Application or the application may be rejected. Federal compliance issues are covered extensively in the ADTA Dealer Ethics, Profit, and Compliance Manual.

Franchise Information

If you are opening a franchised dealership and will be selling new motor vehicles you must include a franchise agreement with your Indiana Dealer Application. If you will only be selling used motor vehicles, you will not have a franchise agreement. Franchise agreements are only for Indiana Dealers that are selling a brand new motor vehicle.

Indiana Dealer Garage Insurance Policy

You must show the Indiana Dealer Services Division that you have a Dealer Garage Insurance Policy in effect before you get an Indiana Dealer License. A dealer garage insurance policy will protect you when you are driving your vehicles back and forth from auctions, will protect your customers when they are driving your demos, and will protect you if someone were injured on your lot. You must have $50,000 property damage, $100,000 bodily injury for each person, and $300,000 for bodily injury for each accident. Obtain your Indiana dealer garage insurance by clicking here.

 

Indiana Dealer Surety Bond

In July of 2010 the Indiana Dealer Services Division requires Indiana Motor Vehicle Dealers to have a $25,000 dealer surety bond in effect before being granted an Indiana Dealers License. You can download an Indiana Dealers License Surety bond here.

Incorporate or Organize With the Indiana Secretary of States Office

The Indiana Secretary of State wants to know the name of every business that is operating in Indiana. You must file articles of incorporation or organization with the Indiana Secretary of States Office. For more information on business requirements go to the Indiana Secretary of States website.

Mail Indiana Dealer License Application Packet

When you have completed all the steps above you must mail your Indiana Dealer License Application Packet to the Indiana Dealer Services Division. Before mailing your Dealer License Application be sure to call 317-234-7109 to make sure you have all the necessary documents. If you are missing one required document the Indiana Dealer Services Division may reject your application. Be sure to include your Indiana Dealer Application signed by a zoning official, your proof of insurance, picture of building, lot, and sign, registered retail merchant certificate, any franchise agreements if applicable, your dealer surety bond, articles of corporation or organization from the Indiana Secretary of States office, and your new Federal Tax ID Number  to:

Indiana Secretary of State
Dealer Services Division
302 West Washington Street
Room E018
Indianapolis, IN 46204
317-234-7109

Indiana Dealer Forms

ADTA Dealer Ethics, Profit, and Compliance Manual
Step by Step Indiana Dealer Licensing Instructions

Download Indiana Dealer License Application

Application for Dealer Business License
Dealer Affidavit
Reassignment of Ownership by Registered Dealer
Indiana Dealer Bond Form
Application for Additional Dealer Plates
Dealer Complaint Form

If you want to obtain an Indiana Dealers license all you need to do is obtain a dealer surety bond and insurance from an insurance agency, obtain a Federal Ta ID & Indiana Sales Ta License, have your fingerprints taken, have a building and lot, sit through a 4 hour training course, then submit a Indiana Dealer License application to the Indiana Used Motor Vehicle Dealers Division , I am going to show you how to easily obtain your Indiana dealers license RIGHT NOW.


First I want to show you some valueble contact information for Indiana Dealers, Indiana dealers are regulated by the Indiana Used Motor Vehicle Dealers Division
Used Motor Vehicle Dealers Division
237 Coliseum Drive
Macon, Indiana 3121

Licensing Boards Division
844-753-7825

www.sos.ga.gov/plb/usedcar

There are several types of dealers licenses in Indiana, here are the different type of Indiana dealer licenses you have:

New Motor Vehicle Dealer
Used Motor Vehicle Dealer
Wholesale Motor Vehicle Dealer
Supplemental License
Motor Vehicle Broker

I want you go in depth in the 6 Steps to an Indiana Dealers License
Step Number 1 Dealer Surety Bond and Insurance
You must obtain a dealer surety bond and insurance in order to obtain an Indiana dealers license. I always recommend this as the first step in obtaining a Indiana dealers license. The cost of a dealer surety bond is based on your credit score and the cost of your insurance is based upon your driving record. I am often asked what it costs to obtain a Indiana dealers license and I can never answer that question accurately because the total cost will depend on your credit score and your driving record.
The State of Indiana requires you to obtain a $35,000 dealer surety bond in order to be granted a Indiana dealers license, is the bond going to cost you $35,000, of course not, with good credit you should be spending about 200 to 300 dollars a year for your bond, your insurance company will normally send you an invoice every year or every other year. If you have a couple of blemishes on your credit score, the price of your bond can increase dramatically. The bond must be a surety bond eecuted by an insurance or bonding company authorized to do business in Indiana,
You will need a $25,000 dealer surety bond if you are selling used motor vehicles
You will need to use State form 53966


You must also obtain a special insurance policy before the State of Indiana will allow you to have a dealers license. Your insurance policy pricing will be dependent on your driving record so if you have a really bad driving record, you might pay a lot more for your insurance. You must also obtain an insurance policy that will cover the vehicles that are in your inventory. The State of Indiana requires every vehicle driven on any roadway in the state to have insurance, including the vehicles in your inventory when they are being test driven by your customers.

One hundred thousand dollars ($100,000) for bodily injury to one (1) person.
Three hundred thousand dollars ($300,000) per accident
Fifty thousand dollars ($50,000) for property damage.
Here you see an eample of the insurance Accord form your insurance agent will provide you, you must submit a copy of your accord form with your Indiana dealer license application, Which I will show you in just a it

Step 2-Federal Tax ID Number and Indiana Merchant Certficate
Before you apply for a Indiana dealers license you must obtain a Federal Ta ID Number and a Indiana Merchant Certificate.
I am going to make a very bold prediction, If you take the necessary steps to obtain a Indiana dealer license, I predict your income will increase dramatically, In fact may of us that have obtain a dealer license have realized profits that were unimaginable before we obtained our dealers license. With the increase in your income, I guarantee that Uncle Sam is going to want piece of it, so we must obtain a Federal Ta ID Number, this is the number the Federal Government will tack onto your new business, you will have this number on your ta returns, and it shows the State of Indiana you are ready to pay federal taes on your profits. You are also going to have to obtain a Indiana Sales Ta Number so you can easily collect sales ta on the vehicles you sell.
You must obtain your Federal Ta ID and Indiana Merchant Certificate number BEFORE you apply for your Indiana Dealers license. I you have questions about your Indiana Sales Ta number you can call 317-233-4015
I want to magnify the screen so you can see these screen shots a little easier
Once again if you have questions you can call 317-233-4015 and they will gladly answer any questions that you have about your Indiana Merchant Certificate. Remember you have obtain your Federal Ta ID Number AND your Indiana Sales Tax ID BEFORE you submit your Indiana dealer license application, which we will cover in just a few moments.

Step 3 Background Check
You must have a background check before you are granted an Indiana Dealers License. The State of Indiana requires dealers to be of a higher ethical standard than the average person walking down the street. Very soon you will have oversight over very large financial transactions. Most of the vehicles you sell with your dealers licenses will be worth several thousands of dollars. This are very large financial transactions that the State of Indiana is allowing you complete oversight. So, before the State of Indiana approves your dealers license, they want to make sure you never rolled back odometers, they want to make sure you have never stolen a car, the State of Indiana wants to make sure they are not giving a dealers license to someone that was managing some auto theft ring. As I stated a moment ago, the state of Indiana requires dealer to be high ethical standards so you a background check will be ran on you when you obtain your mandatory fingerprints.
Before I show you how to get started, we will have to register for an fingerprint appointment online and pay for the fingerprints in advance. So in other words, you will go online, schedule an appointment to have your fingerprints taken, and pay for the fingerprints in advance using a website called Gemalto. IF you have any questions regarding your fingerprints, or want to schedule your fingerprint by phone you can call 1- 877-472-6917
If you live in another state but are obtaining a dealer’s license in Indiana, you will need to request a fingerprint card so you can get your fingerprints taken in your home state.
Let’s take a look at this process, and once again I am going to magnify the screen shots so you can see a little better, and for just a few brief moments, you will not have to look at my head, lucky you!
After you have completed those steps you will be able to have your


Step 4-Building & Lot
You must have a building for your Indiana dealers license. Your business building must be a permanent enclosed building owned or leased by you, The established place of business must be devoted mainly to the operation of your dealership
A dealer may use a trailer as you building but state law requires you to remove the wheels.
Whether you are a retail dealer , broker, 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 Indiana Dealers license. Applicants should contact their local city or county office to ensure compliance with local zoning ordinances.
The dealer shall conduct business in a building on the same property as the display lot. If the dealer is a used car broker, and will not display an inventory of vehicles for sale, the requirements of this rule for an established place of business shall still be met, with the eception of the display area for vehicles. That would be for brokers. All sales activity must take place at the lot, you cannot sell vehicles away from the lot unless you are selling vehicles at a dealer auction

New and Used Dealers are subject to the following additional requirements regarding their established place of business:
At least 1,300 square feet
Able to accommodate the display of a minimum of 10 vehicles
Well-lit during hours of operation
Have and display customer parking areas adequately surfaced with asphalt, concrete, rock, or substance that will not change with weather conditions
Have a dealer office that is:
housed at the dealer's established place of business
at least one hundred (100) square feet in size
equipped with office furniture such as a desk, chairs, and filing cabinets
reflective of functional use and operation of the license
served with utilities such as:
electricity;
lighting;
heat;
operational plumbing;

You must also have also have installed and maintain a working land line telephone whose number shall be listed in the licensee's trade name, the same as that which is listed in the application and in any advertising. You must also erect and maintain a permanent sign. The sign shall list the trade name of the dealer, the same as that which is listed in the application and in any advertisement by the dealer. The Telephone number listed on the sign must be the phone number listed in the application and in any advertisement by the dealer. The sign must also list the hours of operation
Be manned and open to the public at least 30 hours each week or at least 20 hours each week and a telephone answering, paging, or mobile service offered during the remaining 10 hours each week, the number for which is identified on the business sign
The sign must be professionally designed on permanent material,. At least one sign must be located and positioned to be clearly visible to consumers from the street.

Step 5 Register Your New Business with the Indiana Secretary of States office.
The Indiana Secretary of State is not only the State of Indiana’s leading election authority they are also in charge of keeping a record of every business operating in Indiana. They want a record of the dealership you are opening as well. Before you file your business on the Indiana Secretary of States website you will need to decide upon your business entity. You are either starting your dealership as a sole proprietor, and llc, a corporation, a business trust, a partnership, or a not for profit. You can get some legal advice to determine what business enitity is best for you, or If you need guidance you can call the Secretary of States office at 800-457-8283
Let me show you how easy this is, it only takes a few moments when you have decided your business entity

Before we move on I want you to know the State of Indiana has FREE dealer license training classes that are held in Indianapolis every month
The free training sessions to dealers that includes Common Violations, Enforcement Action, What to Epect During an Audit, Current Online Functions, Renewals and Contacts.
If you believe your dealership would benefit from this service, contact Rhonda Miller, Auto Dealer Outreach Coordinator, at 317-460-6433 or rhmiller@sos.in.gov .
You should definitely consider attending a class, they are not required like in most states but I am sure attending one of these classes would be very beneficial to you.

Step 6-Complete Application
The final step you need to do to obtain an Indiana dealers license is to complete an Indiana dealer license application in it’s entirety. This must be done online only, the State of Indiana no longer accepts mailed dealer applications.
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.
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.

Don’t for get to have the following documents ready
Zoning Affidavit (SF 55936)
Indiana Vehicle Merchandising Certificate/Bond (SF 53966)
Certificate of Insurance
Photos of the Established Place of Business
Business Entity Documentation
Retail Merchant Certificate
Photo Identification
Background Check
License Fee

lets take a look at an Indiana dealers license application: once again I want to magnify the screen shots and once again you will have a brief respite from looking at my head.

Once again, here is that great contact information for you
Auto Dealer Services Division
302 West Washington Street
E-111
Indianapolis, Indiana 46204
317-234-7190
www.dealers.sos.in.gov 
dealers@sos.in.gov 
When you submit your application correctly you should receive your Indiana Dealers license in about 30 days.

Once you obtain your Indiana dealers license you must display the license prominently, you are going to work hard to obtain your Indiana dealers license, you are going to be proud when you obtain your Indiana dealers license, Indiana law requires that you display your dealers license prominently when it is granted, don’t shuve it in some desk drawer, or lock in in a vault, frame your official Indiana dealers license and display it on the wall, all Indiana dealers licenses must be displayed prominently

Start your Indiana Dealership in full compliance. Order your ADTA Dealer Ethics, Profit, and Compliance Manual.

Good Luck In Obtaining Your Indiana Dealer License!

We are here to help you maintain your Dealership Compliance!

Dealer License  

Delus Johnson-Lead Instructor
Automobile Dealer Training Association