How to Obtain a Motorcycle Dealer's License

by Lucy Bowles

Obtaining a motorcycle dealer's license will allow you to indulge in your passion for bikes while also creating financial security. You must have a license if you are leasing, selling or negotiating the lease or sale of motorcycles. Each state has similar requirements for obtaining a motorcycle dealer's license. However, some factors, such as registration fees, differ slightly from state to state. Also, some licenses allow dealerships to sell new and used motorcycles, while others allow the sale of only one and not the other.

Instructions

Purchase or rent space for your store. You must establish your place of business before you can apply for a dealer's license. Install a phone line and a business sign outside the dealership to make your business recognizable. Acquire property damage and public liability insurance for your motorcycle dealership.

Contact or visit the website for your state's Department of Motor Vehicles, or DMV, to find out the specific process for obtaining a motorcycle dealer's license in your state. Inquire about registration fees and filing surety bonds with your state treasurer.

Verify that you qualify for a dealer's license. Many states have basic requirements for you to meet in order to be eligible to receive a motorcycle dealer's license. For example, most states require applicants to be at least 18 years old, show proof of insurance coverage for the business, hold a permanent business location and hours, and have no criminal record.

Acquire a dealership license through your DMV. Most state applications require you to take a test, which asks questions about vehicle disclosure, purchase agreements, record keeping, registration and titling, and advertising. Typically, these tests have around 50 questions.

Mail your application, test and registration fee. Some states require additional documents to be attached to the application, such as a tax clearance showing you and your business are in good financial standing. Also, some states many require you to show proof of zoning approval of your dealership by the city's zoning board.

Tip

  • check Once you obtain your motorcycle dealer's license, read the fine print and make sure you understand all the requirements and responsibilities that come with having this permit. Keep your license and all papers in a safe place in case you need to refer back to them in the future.

About the Author

Lucy Bowles is an avid freelance writer from Indianapolis. She has written for various websites since 2009. As a certified paralegal Bowles has worked in the areas of business, intellectual property and entertainment law. She has a bachelor's degree in history and a minor in legal studies from Indiana University.

Photo Credits

  • photo_camera Beautiful motorcycle. image by Yuri Bizgaimer from Fotolia.com