If you are planning on selling used cars in Mississippi to make a profit, the state requires you first get a Car Dealer License.
Not sure if you need a dealer license? Check out this post on selling cars without a license.
How to get a Used Mississippi Car Dealer License
Step #1: Establish a place of business
The state of Mississippi requires that your business occupy a location, separate from any other business, which has the primary purpose of selling vehicles.
Your location will need to include a space for displaying vehicles as well as a place to store official books and records.
Step #2: Complete a pre-licensing course
You can register for your 8-hour course on the Mississippi Independent Auto Dealers Association website. There is a $395 registration fee for the course and you will need to register at least a week before your course.
Step #3: Get a Federal Employer Identification Number (FEIN)
You can apply for your FEIN online on the IRS website.
Step #4: Get a Business ID
You can register your Business ID by visiting the Mississippi Secretary of State website.
Step #5: Register for a Sales Tax Number
Use your FEIN and Business ID to register for a Sales Tax Number through the Department of Revenue’s Taxpayer Access Point system.
Step #6: Purchase liability insurance.
Mississippi requires that all motor vehicle dealers have blanket liability coverage on all vehicles. Liability insurance can be purchased from most insurance providers.
Step #7: Purchase a Mississippi Motor Vehicle Dealer Surety Bond
A Motor Vehicle Dealer Bond is a type of surety bond that protects your customers. If your customers feel you are not running an ethical business, they can make a claim against your bond.
To get a surety bond, you will need to contact a surety bond company.
You will not need to pay the entire $15,000 to get bonded. You will pay anywhere from 1-15% of the bond amount (so $150 – $2,250) depending on your credit.
To see how much you’d pay, get a free quote below:
Get free MS Used Dealer Bond quotes
Step #8: Complete a Dealer License Application Packet
You can submit your application along with your Surety Bond, Certificate of Course Completion, and proof of liability insurance to:
Mississippi Department of Revenue
Motor Vehicle Licensing Bureau
P. O. Box 1140
Jackson, MS 39215
Make sure to also include your $100 permit fee and $43.75 for each tag you need.
All dealer licenses and tags expire on October 31 each year.
For any additional questions about the licensing process contact the Mississippi Department of Revenue at 601-923-7143.
Related Articles:
How to get an Auto Dealer Bond.
