Michigan Dealer Licenses are regulated by the Michigan Department of State. If you have questions on Michigan dealer licensing you can call the Business Licensing and Regulation Division at 1-888-767-6424.
Follow these easy step by step requirements in order to obtain your Michigan Dealer License.
You can download your Michigan dealer license application by clicking on
the following link:
The Michigan Department of State requires many Michigan dealers to apply
for a Michigan sales tax number. Just contact
Michigan Department of
Registration Division at 517-636-4660 to find out if you are required to apply for a Michigan Sales Tax number before applying for a Michigan dealers license.
You will be required to submit a copy of your fingerprints before you are
granted a dealer’s license in Michigan. The
State of Michigan wants to
ensure they are not licensing any known felon with extensive criminal
histories. In order to get your fingerprinting process started just click on
www.michigan.gov/mst then click on Criminal History Records, then click
Employment Licensing. You must download the following form to be completed
by the fingerprinter:
Be sure to include the receipt for your fingerprinting in your Michigan Dealer Application packet.
The Michigan Business Licensing and Regulation division requires all Michigan dealers to be bonded. You must obtain a dealer surety bond in the amount of $10,000. You can purchase a dealer surety bond from most licensed Michigan insurance agencies or a Michigan bonding company. A bond is required in order to protect customers from unethical dealers, it gives the customer financial recourse in the case of any legal judgments against the dealer. If you have a great credit score you should be able to obtain a Michigan dealer surety bond for about $130 a year. If you credit is not so good, your bond prices can increase dramatically. You can download the Michigan Dealer Surety Bond form by clicking here:
Michigan State Law requires Michigan dealers to carry a minimum amount of insurance before you are granted a dealer license. You must obtain what is known as Michigan No-Fault Fleet Insurance. You must have 20/40/10 fleet-type Michigan no-fault insurance indicating coverage that specifically states “any vehicle” or “all vehicles owned”. Be sure to obtain several quotes for your dealer insurance as the quotes will vary greatly from insurance agent to insurance agent. Obtain your Michigan Dealer Insurance by clicking here.
To keep a Michigan dealer license you are required to have a business building. Your building must be an enclosed building and it is not allowed to be shared with another Michigan dealer. Michigan law strictly forbids more than one dealer to operate out of the same building. Michigan law also forbids having a dealer license at any residence. All of your dealer business records must be stored in the business building at all times. Your business building must have an office space with at least 150 square feet of space and you must also have a restroom in the business building. You must have standard office furniture, working utilities, and a working telephone listed in the dealership name.
You must have an area to display vehicles that is at least 1300 square foot with enough room to display 10 vehicles and you are also required to have at least 650 feet for a customer parking lot. The State of Michigan wants to ensure your customers have plenty of room to park other than on your display lot. You are only allowed to park vehicles that are for sale by your dealership on your display lot.
You are required to have a permanent business sign attached to your Michigan dealer license building in order to be granted a dealers license from Michigan. The sign may also be attached to land at your location and you must display your hours of operation. The State requires your hours of operation to be prominently displayed allowing your customers to know when it is possible to contact you.
To keep your Michigan Dealer License compliant you must maintain a minimum of 30 business hours a week. The dealership must be staffed by the owner an employee.
To receive a Michigan dealer license you must either be a Registered Michigan Repair Facility, apply to become a Registered Michigan Repair facility , or have an agreement with an Registered Michigan Repair Facility. Michigan wants to ensure that you have the ability to either repair the vehicles your customers purchase from your or that you have access to a registered vehicle repair facility. You can complete the Repair Facility agreement by clicking here :
If you are obtaining an agreement from a Registered Michigan Repair Facility you must have the repair facility complete the following form:
Your must show the
Michigan Business Licensing & Regulation Division that
you meet all zoning and municipal requirements before you are allowed to
obtain a Michigan Dealer License.. If your dealership is going to be located
in an unincorporated part of a county you can obtain approval from your
County Planning and Zoning Commission that is normally located in your
County Courthouse. If you are locating your dealership in Detroit, contact
the Department of Buildings and Safety Engineering, Zoning Division, 4th
floor, City-County Building. If you are locating your dealer lot in any
other Michigan city, you can contact your City Hall’s Planning and Zoning
Office. Just print the Michigan Zoning and Municipality form then take it to
your County Courthouse or City Hall and have the appropriate zoning
authority complete it. The Michigan Zoning and Municipality Form is not
allowed to be completed by the dealer applicant, it can only be completed by
the proper zoning officials.
You can download the Michigan Zoning and Municipality form by clicking on the following link:
If you are applying for your Michigan dealer license as an individual or partnership, you must enclose an Assumed Name Filing from the County which the dealership is to be located in. Many Michigan Counties allow this to be done online but you may be required to file this paperwork at your County Courthouse. Just contact your County Clerk for further instructions if you are filing as an individual or partnership. If you are applying for a Michigan Dealer License as a corporation or limited liability corporation you must include copies of your Michigan Department of Consumer & Industry Services. You may call them directly at 517-241-6470 for further questions or visit them online at:
Must have a representative from the Michigan Business Licensing & Regulation Division inspect your dealer lot to make sure you have met your minimum physical lot requirements. This is a quick painless inspection that should only take a few minutes. To schedule an inspection of your dealer license location you can call the Licensing and Regulation division at 1-888-767-6424
Be sure to include the following documentation in your Michigan Dealer
License Application Packet:
Dealer Surety Bond in the amount of $10,000 with Power of Attorney from bond company
Repair facility registration application or agreement with registered repair shop
Michigan Fleet Type no fault insurance
Franchise Agreement if your are selling new vehicles
Signed receipt to serve as proof of fingerprinting
Copies of articles of incorporation or assumed name filing
Completed Michigan Zoning and Municipality form
Check or money order payable to State of Michigan for $95 for licensure fees and 2 dealer plates.
Mail the Michigan Dealer License Application packet to:
Michigan Department of State,
Bureau of Regulatory Services,
Business Licensing and Regulation Division
Lansing, MI 48918