The path to your license
This is the exact path I followed to get my own license. Every step, fee, and form, in the order I’d do it again today. Deeper guides cover the pieces people get stuck on.
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The big picture
Your city approves the lot. The state approves you. Open both on day one. The slower one decides when you open.
City track
State track
Why I push this: both of them will inspect your lot. The city checks whatever it requires, such as CUP conditions and the sign permit, and every city’s list is different. MVED checks the state standards. MVED issues your dealer license on its own requirements and doesn’t wait on the city. But the city’s business-license division typically won’t issue your business license until your MVED license exists. So the state license lands first, and the city’s paperwork closes right behind it.
Step by step
Start with the name. Two free searches settle it in about a minute: the Division of Corporations’ Name Availability check, and the state’s public list of licensed dealers. MVED won’t license a name confusingly similar to another dealer’s, so clear both before the name goes on your LLC, bond, and sign. If something comes back close, that’s when a call to MVED (801-297-2600) earns its keep. Similarity is their judgment call, not a search result. Then form your LLC and register the name with the Utah Division of Corporations, and file a DBA if you’ll operate under a different name. Get a free EIN from the IRS, then open a Utah sales-tax account at tax.utah.gov. MVED requires the sales-tax license in your application.
Take this one from me: they read every line. Two details that slow people down: different forms want different addresses, so know where your home address goes and where the lot’s goes. And how your DBA is owned matters, whether it’s under the LLC or under you personally. Get both consistent across the packet before you file.
Call the city planning office before you sign anything. Vehicle sales are only allowed in certain zones, and I don’t want you signing a lease on a lot you can’t use. Many cities also require a Conditional Use Permit, sometimes with a hearing — and often a permit for your sign. Which permits apply is your city’s call, and some cities are stricter than others — ask exactly which ones your lot needs on that first call. On top of that, the state has its own physical standards:
Once your city’s conditions are met and approved — CUP inspection included, where one applies — get the business-license application in. Most cities will hold it and issue the business license itself once MVED issues your dealer license. You can’t sell from home or any unlicensed location. Here’s exactly when Utah says you need a license.
You’ll keep a $75,000 surety bond on file the whole time you operate. Don’t panic at the number. You pay a yearly premium to a bond agent, not the full amount. While you’re at it, get a garage liability quote; you’ll need it for your dealer plates.
Heads up: everyone who signs on the bond also has to take the 8-hour course. There’s no state exam — here’s what the course actually is. And make sure your bonding company uses the current state form. MVED requires the Rev. 10/13 version, and old stock bounces the whole packet.
This is where I come in. The state requires an MVED-approved 8-hour orientation before you apply — licensing law, forms and records, advertising rules, and the federal side (IRS 8300, Buyers Guide, OFAC). My course walks you through all of it, and your certificate is issued the moment you finish.
It’s $49 — on your phone, in English and Spanish, with Listen mode on every unit. Each partner, officer, indemnitor, and manager needs their own certificate.
Start the courseNow you put it all together. The Bonded Motor Vehicle Business Application (Form TC-301) goes to MVED with the complete packet:
Before it goes in the envelope, run every line through the free packet pre-check. An MVED officer then inspects your lot within 5–10 working days. There’s no license until it passes, so have the sign up and hours posted before they arrive. A quick fix now beats a second visit later.
Pull your dealer plates. They’re how you legally drive your inventory, and new dealers start with a limited number. If you plan to buy salvage at Copart or IAA like I do, add the Salvage Buyer license (TC-305, $203/yr); it can only be issued after your dealer license exists. Then open your auction accounts and go buy your first car. Bidding at Copart or IAA? The max-bid calculator at dealerpronto.com is free.
This is the rhythm I live by every month — I cover all of it in the course:
This rhythm is exactly what dealerpronto.com is built for — it keeps the disclosures, deadlines, and monthly reports on track for you. Your course certificate includes 30 days of Pro.
Budget
The fees I paid, line by line. Your bond premium and insurance will depend on your credit and coverage. See every Utah dealer license fee itemized.
Pace
The city sets the pace. Everything else runs alongside it. Plan on 6–10 weeks, start to finish.
Reference
I wrote this page to teach, not to give legal advice. Requirements, fees, and forms change, so always confirm current rules with MVED (801-297-2600 · mved.utah.gov), the State Tax Commission, and your city. Figures reflect Utah requirements as of 2026.
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