The path to your license
This is the exact path I’m following for my own license — every step, fee, and form, in the order I’d tell you to do them today.
The big picture
Your city approves the lot. The state approves you. Open both on day one — the slower one decides when you open — that was true for me too.
City track
State track
Why I push this: MVED won’t issue your license until your lot passes inspection, and the lot has to clear city zoning first. Until the city signs off, everything else just waits.
Step by step
Form your LLC and register the name with the Utah Division of Corporations — 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 — 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 paying rent on a lot you can’t use. Many cities also require a Conditional Use Permit, sometimes with a hearing. On top of that, the state has its own physical standards:
Once CUP conditions are met, pull the city business license and sign permit. You can’t sell from home or any unlicensed location.
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.
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.
My course is $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:
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 me, 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 — and run it all on DealerPronto — my team and I built it to run the whole store, not just the paperwork. Every graduate gets 30 days of Pro free.
This is the rhythm every dealer lives by, month after month — I cover all of it in the course, and DealerPronto keeps the paperwork on schedule — and runs the rest of the store too:
Graduate perk
30 days of DealerPronto Pro free for every graduate — deals, day-to-day operations, and the paperwork, all in one place. Start your dealership on it.
Budget
The real fees, line by line. Your bond premium and insurance will depend on your credit and coverage.
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 — 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.