How to Get an Auto Dealer License in Kansas

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Becoming an automobile dealer in Kansas can help you indulge your love of cars while creating financial security for yourself and your loved ones. Before selling cars to the public, however, you must apply for an auto dealer license through the Kansas Department of Revenue. This will help ensure that your business is set up correctly and that you're prepared for any legal liability that may come with car sales.

  • Rent or buy a storefront. You must have an established place of business before you apply for the license. Be sure you have a dedicated phone line and a sign at least 10 inches tall with your business name on it. Obtain public liability and property damage insurance on this space.

  • Apply for your sales tax registration through the Department of Revenue using your business name. You must also pass a tax clearance check and provide three references who can attest to your good financial standing.

  • Apply for zoning approval for your car dealership through your city's zoning board and obtain proof of your clearance. You'll have to show this when you apply for your license.

  • Obtain a $30,000 surety bond. You must file proof of these bonds with the state treasurer.

  • Fill out the application for a vehicle dealer's license and submit it to the Department of Revenue, Division of Vehicles, in Topeka, Kansas. Be sure to provide proof of your zoning with the application. You must also have your county treasurer sign the form and verify that you've paid any property taxes you might owe.

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