Florida Auto Dealer License

Do You Need a License to Run an Auto Dealers and Sales Business in Florida?

Yes, you need a Florida Motor Vehicle Dealer License to operate an auto dealers and sales business in Florida. This license is regulated by the Florida Department of Highway Safety and Motor Vehicles (FLHSMV), Division of Motorist Services (Bureau of Dealer Services). See s. 320.27, Florida Statutes.

Last checked: 2026-07-26

Operating without this license can lead to significant fines and legal issues. The licensing process ensures that businesses meet specific standards, which include maintaining an approved lot and office, acquiring adequate insurance, and fulfilling bonding requirements. These measures are in place to protect both the business and its customers. Location and display/office standards are outlined in Rule 15C-7.003, F.A.C..

Which Licenses & Permits Are Required for Auto Dealers and Sales in Florida?

In Florida, the primary license required is the Florida Motor Vehicle Dealer License. Additionally, businesses may need to consider other permits depending on their operations.

• Florida Motor Vehicle Dealer License (state-issued by FLHSMV)
• Local business permits, as required by city or county
• Federal Employer Identification Number (EIN) for tax purposes
• Sales tax registration with the Florida Department of Revenue

Ensure you verify which specific local permits are necessary for your business location as these can vary by municipality.

How to Apply: Step-by-Step Application Process for a Florida Motor Vehicle Dealer License

To apply for a Florida Motor Vehicle Dealer License, submit your application to FLHSMV’s Division of Motorist Services. The process requires several key steps to ensure compliance with state regulations.

1. Complete the Dealer License Application: Use Form HSMV 86056 (Application for a License as a Motor Vehicle, Mobile Home, or Recreational Vehicle Dealer). Statutory requirements are in s. 320.27, F.S.
2. Post a Dealer Surety Bond: Provide a $25,000 surety bond (or irrevocable letter of credit) in the form approved by FLHSMV. See s. 320.27(10), F.S.
3. Establish an Approved Lot and Office: Your location must provide an adequately equipped office (not a residence) and sufficient display/storage space, with books and records available for inspection. See Rule 15C-7.003, F.A.C. and s. 320.27(3), F.S.
4. Complete Required Dealer Training: Pre-licensing training from a licensed dealer training school must be completed within the six months before filing an initial application (certain experienced franchise dealer applicants may be exempt). See s. 320.27(4)(b), F.S.
5. Obtain Required Insurance: Provide proof of a garage liability policy, or a general liability policy coupled with a business auto policy, with at least $25,000 combined single limit for bodily injury/property damage and $10,000 personal injury protection (PIP). Salvage dealers are exempt from garage liability/PIP on non‑operable vehicles. See s. 320.27(3), F.S.
6. Fingerprinting/Background Check: Owners/partners/officers must submit fingerprints; you pay the state and federal processing costs. See s. 320.27(3), F.S.
7. Submit the Application and Fees: File your completed package with the appropriate Regional Office and pay the statutory fee of $300 for the first year (optional second year available for an additional $75). See s. 320.27(3)–(4), F.S. and Form HSMV 86056.

Processing times are not fixed in statute and can vary by region and completeness of your file. Apply early and ensure all documentation is accurate to avoid delays.

How Much Does It Cost & How Long Does It Take to Get Licensed?

State fees for a Florida Motor Vehicle Dealer License are set by statute: $300 for the initial year, with an optional second year for an additional $75 at original licensure; renewals are $75 for one year or $150 for biennial renewal. See s. 320.27(3)–(4), F.S. and Form HSMV 86056.

Separately, you must maintain a $25,000 surety bond and minimum insurance of $25,000 CSL liability plus $10,000 PIP (salvage dealers exempt as noted). See s. 320.27(3) & (10), F.S. Actual processing time is not specified in statute and varies; complete and accurate submissions help prevent delays.

When & How Do You Renew Your Florida Motor Vehicle Dealer License?

Dealer licenses renew on an annual or biennial cycle. By law, independent (VI), wholesale (VW), auction (VA), and salvage (SD) dealer licenses expire on April 30 of the year of expiration; franchise (VF) dealer licenses expire on December 31. See s. 320.27(4)(a), F.S.

To renew, submit Form HSMV 86720 with the renewal fee of $75 (one‑year) or $150 (two‑year). A renewal filed within 45 days after expiration requires a $100 delinquent fee; thereafter, you must reapply as a new dealer. See s. 320.27(4), F.S.

Independent dealers must also complete 8 hours of continuing education every two years and file proof at renewal. See s. 320.27(4)(a), F.S.

Common Mistakes to Avoid When Applying for a Florida Motor Vehicle Dealer License

• Skipping the Dealer Education Course: Pre‑licensing training is required for initial applicants; independent dealers also need biennial continuing education. See s. 320.27(4), F.S.
• Failing to Maintain Proper Insurance: Maintain at least $25,000 CSL liability and $10,000 PIP (garage liability or GL + business auto). See s. 320.27(3), F.S.
• Not Posting a Surety Bond: A $25,000 bond (or LOC) is required for licensure. See s. 320.27(10), F.S.
• Inaccurate or Incomplete Application: Missing documents (e.g., lease, insurance, fingerprints) or errors can delay or derail approval.
• Neglecting Local Permits: Check local zoning and permitting requirements before you sign a lease or open.

Related License Navigator guides: Florida auto-dealers licensing requirements · Auto Dealers and Sales License Requirements in Georgia (2026 Guide) · Moving and Storage Companies License Requirements in Florida (2026 Guide) · Cosmetology and Beauty Services License Requirements in Florida (2026 Guide)

Frequently Asked Questions About Auto Dealers and Sales Licensing in Florida

What is the initial fee for a Florida Motor Vehicle Dealer License?

The statutory initial fee is $300 for the first year; applicants may opt to extend initial licensure to two years by paying an additional $75 for the second year. See s. 320.27(3), F.S. and HSMV 86056.

How often do I need to renew my dealer license in Florida?

You may renew for one year ($75) or choose a two‑year ($150) biennial renewal. Independent/wholesale/auction/salvage licenses expire April 30; franchise dealer licenses expire December 31. See s. 320.27(4), F.S.

What happens if I don’t post a dealer surety bond?

Your application will not be approved. A $25,000 surety bond (or irrevocable letter of credit) is required by law. See s. 320.27(10), F.S.

How long does it take to receive my dealer license after applying?

There is no fixed processing time in statute; timing varies by regional office and the completeness of your submission. Submitting a complete, accurate application and promptly completing fingerprints can reduce delays.

Do I need a specific location to apply for a dealer license in Florida?

Yes. You must have an approved lot and office that are not a residence, with adequate display/storage space and accessible records, per Rule 15C-7.003, F.A.C. and s. 320.27(3), F.S.