Mississippi Dealer License: The Full Guide (2021)
Interested in launching a car dealership in Mississippi? You need to get acquainted with the administrative procedures, so that you can obtain your Mississippi dealer license with ease.
The licensing process depends on the type of license that you need – whether you want to sell new or used vehicles. There are different requirements that you have to meet. One of them is providing an auto dealer bond, which ensures your legal compliance.
To get started with your car sales business, you can obtain the full information about the licensing process in the current guide.
1. Choose the right auto dealer license type
Your first step is to determine what type of Mississippi auto dealer license you need to obtain. They are the following:
- New Vehicle Dealer
- Used Vehicle Dealer
- Wholesale Dealer
2. Get to know the Mississippi dealer license requirements
There are two licensing bodies that issue Mississippi car dealer licenses. The Motor Vehicle Commission (MMVC) oversees the activities of new car dealers. The Department of Revenue (DoR) provides Mississippi used car dealer licenses and wholesale licenses.
The requirements that you have to fulfill vary slightly, depending on the license type. They include providing:
- Information about owners
- Business entity information
- Business location requirements – display area, office, and business sign (new and used dealers)
- Dealer education seminar from the Mississippi Independent Auto Dealers Association (MIADA) (used and wholesale dealers)
- Franchise agreement with manufacturers (new dealers)
- Motor vehicle liability insurance (used and wholesale dealers)
- Surety bond
3. Prepare your paperwork
In order to launch your licensing process, you have to complete the Mississippi dealer license application. There are separate forms for new vehicle dealer applications and for used and wholesale dealer applications.
Besides fulfilling the criteria listed above, you also need to obtain a list of other documents from different institutions:
- Employer Identification Number (EIN) from the IRS
- Business entity registration from the Mississippi Secretary of State (SoS)
- Sales tax number from the Department of Revenue
4. Obtain the necessary Mississippi auto dealer bond
All types of auto dealers in Mississippi need to get a surety bond as a part of the licensing process. It works as a safety mechanism that protects the interests of the state and the general public against fraud and misuse on the part of dealers.
The amounts of the Mississippi auto dealer bond depend on your license type:
- $25,000 for new vehicle dealers with one location
- $100,000 for new vehicle dealers with multiple locations
- $15,000 for used and wholesale dealers
Your bond cost is a small percentage of the required amount. It is called the bond premium. If your finances are in good shape, the rates that you can expect are between 0.75% and 5%. Your personal credit score and business finances are among the most important factors that affect the premium.
5. Apply with your full document set
New dealers can fill in the application online and attach the necessary documents for review by the MMVC.
If you’re applying for a Mississippi wholesale dealer license or used dealer license, you have to mail your documents to the DOR:
Mississippi Department of Revenue
Motor Vehicle Licensing Bureau
P.O. Box 1140
Jackson, MS 39215
The licensing fees are the following:
- $100 license fee for all license types
- $10 salesperson application for new dealers
- $43.75 fee for one dealer tag for used and wholesale dealers
6. Renew your license annually
You have to undergo the yearly renewal process if you want to keep your Mississippi dealer license active. The licensing period runs for one year.
New vehicle dealers have to renew before the expiration date of their licenses. Used and wholesale dealers have to renew their licenses before October 31st.
Have more queries about the Mississippi dealer license and bond requirements? You can call us at 877.514.5146.
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