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MISSISSIPPI AUTO DEALER LICENSE: STEP-BY-STEP GUIDE

STEPS

1. ATTEND MS DEALER TRAINING PRE-LICENSE CLASS

All persons applying for a Motor Vehicle Dealer Permit are required to complete the eight (8) hour educational seminar conducted by the Mississippi Independent Auto Dealers Association (MIADA). Your application must be accompanied by the certificate of completion for the class during the twelve month period immediately preceding the date of the application.

Click this Link to visit the MSIADA Pre-License Class Link

2. DETERMINE THE BUSINESS STRUCTURE FOR DEALERSHIP

Determine the business structure will be listed as for the owner of the dealership. Business structures can be:

  1. Corporation or LLC , registered with the Secretary of State

  2. Partnership, registered with the Secretary of State

  3. Sole ownership/ sole proprietorship

Click Link for the MS Secretary of State Online Business Registration

3. OBTAIN A FEDERAL EMPLOYEE IDENTIFICATION NUMBER (FEIN)

Click this Link to visit the IRS Site to obtain a FEIN Number

If operating as a sole proprietorship, then business owner can elect to use their social security number (not recommended)

4. OBTAIN A PERMANENT BUSINESS LOCATION

Have met the definition of “Established place of business” as provided in Section 27-19-303, Miss. Code. Ann., by having: (1) A place owned or leased and regularly occupied by me for the primary and principal purpose of and where it is apparent that I am holding out to the general public that I am offering motor vehicles, tractors, trailers or semi trailers for sale.

  1. A place owned or leased and regularly occupied by me for the primary and principal purpose of and where it is apparent that I am holding out to the general public that I am offering motor vehicles, tractors, trailers or semi trailers for sale

  2. An office separate from and not in conjunction with or related to any other business for the purpose of transacting the business of offering motor vehicles, tractors, trailers or semi trailers for sale.

  3. A sign indicating the name of the business, the name of the owner, telephone number and that the business is a motor vehicle dealer that is clearly visible and located at the front of the lot, and a lot which is separate and apart from any other business.

5. OBTAIN MS SALES TAX NUMBER -PERMIT

The registration application for a sales tax number must be completed and a sales tax number assigned. A sales tax number will be required for each motor vehicle dealer location. Also, if you plan to rent vehicles, another sales tax number is required.

You can register online for a Mississippi sales tax number by clicking this link

6. OBTAIN GARAGE LIABILITY INSURANCE

Dealers are required to maintain motor vehicle liability insurance providing blanket coverage on vehicles operated on the public streets and highways of this state, including vehicles in dealership inventory. Evidence of liability insurance for business and inventory vehicles shall be filed with the initial application for license and at each renewal.

7. OBTAIN AUTO DEALER BOND

You must have the Bond of Designated Agent executed by an insurance company in the amount of $15,000.00 written by an insurance company qualified to do business in the State of Mississippi.

  1. The bond must have a seal affixed to it and a valid Power of Attorney attached.

  2. If the business is a sole ownership, the owners name as well as the business name must be shown on line 1 of the bond. If the business is a partnership, all partner’s names including the business name must be shown on line 1. The business name will be shown as a d/b/a. If the business is a corporation, the correct corporate name as registered with the Secretary of State must be on line 1. If the corporation has a trade name or dba, both names must be shown on line 1 (i.e. ABC Corp dba ABC Used Cars).

  3. The bond must be signed by the principal(s), the Attorney-in-Fact and the Mississippi resident agent where indicated on the bond.

  4. The second line of the bond must show the city in which the business will be located and operate.

8. SUBMIT THE COMPLETED APPLICATION AND SUPPORTED DOCUMENTS TO THE MISSISSIPPI DOR

Mississippi Application for Motor Vehicle Dealer License

Dealer must mail the completed dealer application and include the following supporting Documents:

  1. MS sales tax permit;

  2. Surety bond and POA of designated agent;

  3. Notarized affidavit included with application;

  4. Certification of completion for the educational seminar;

  5. Proof of liability insurance -Acord Form provided by Insurance Agent.

Application is mailed to:

Mississippi Department of Revenue

Motor Vehicle Licensing Bureau

P. O. Box 1140

Jackson, MS 39215