Getting Your Mississippi Motor Vehicle Dealer License

The Shape of the Process

For a used motor vehicle dealer working with DOR, the requirements fall into these groups. Several must be completed before the application packet can be assembled, because their documentation goes inside it.

1. 01

   Dealer education

   complete the required pre-licensing seminar and keep your certificate.

2. 02

   Business formation

   establish your legal entity and register it as appropriate for your structure.

3. 03

   Federal EIN

   obtain one from the IRS.

4. 04

   Established place of business

   a location meeting the statutory definition, with the required office, signage, and records storage.

5. 05

   Mississippi sales tax number

   obtained before you submit, with a separate number required for each dealer location.

6. 06

   Liability insurance

   blanket coverage on business and inventory vehicles, evidenced at application and at every renewal.

7. 07

   Surety bond

   the designated agent bond, executed with seal and power of attorney, submitted in original form.

8. 08

   Assemble and submit the packet

   to DOR, with every supporting document included.

Step 1

Confirm which agency regulates you

This is the first decision, and it changes everything downstream. Used motor vehicle dealers, wholesale dealers, and designated agents fall under the Department of Revenue. New and franchise dealers fall under the Mississippi Motor Vehicle Commission, a separate body with different requirements and a different, higher bond.

The remainder of this guide describes the DOR path for used and wholesale dealers. If you intend to sell new vehicles under a franchise agreement, contact the Motor Vehicle Commission instead.

Wholesale is its own category. Mississippi treats wholesale dealers differently from retail — residency, inventory limits, tag limits, and business-location requirements can all differ. If you are considering wholesale, confirm the specific rules for that category rather than assuming the retail requirements apply.

Step 2

Dealer education seminar

Mississippi requires applicants for a motor vehicle dealer permit to complete a pre-licensing educational seminar, and the certificate of completion must accompany the application.

The certificate has a limited validity window relative to your application date, so do not take the class long before you intend to apply. Confirm the current required seminar, the approved provider, and the validity window with DOR before you register — provider arrangements and course requirements can change.

Step 3

Business structure and federal EIN

Determine what business structure will own the dealership — corporation, LLC, partnership, or sole proprietorship. Corporations, LLCs, and partnerships register with the Mississippi Secretary of State. Which structure is right for you is a question for an attorney or CPA, not for a software vendor. It affects your taxes, your personal liability, and how your name must appear on the bond — which Mississippi is strict about.

Obtain a federal EIN free of charge directly from the IRS. Be cautious of third-party sites that charge for this. Sole proprietors may have the option to use a Social Security number instead; discuss that choice with your CPA rather than defaulting to it.

Step 4

Established place of business

Mississippi defines “established place of business” in statute, and the definition is specific. In general terms it requires a location owned or leased and regularly occupied for the primary purpose of selling vehicles, where it is apparent to the public that the business is being conducted; an office separate from and not in conjunction with any other business; a place to store records; reasonable hours of operation; and a sign at the front of the lot identifying the business as a motor vehicle dealer.

Because the statutory language governs and has specific elements, read the current definition in the Motor Vehicle Dealer Booklet before you commit to a property. Check local zoning separately with your city or county — zoning is a local matter entirely separate from state licensing.

Check the location before you sign anything. Discovering that a property does not meet the statutory definition after you have signed a lease is the most expensive mistake available in this process.

Step 5

Mississippi sales tax number

A sales tax number must be obtained before you submit your dealer application — it is a prerequisite, not a parallel task, and a copy of the permit goes in the packet.

A separate sales tax number is generally required for each dealer location, and additional activities such as vehicle rental may require their own registration. Registration is handled through the Department of Revenue's Taxpayer Access Point.

Step 6

Liability insurance

Mississippi requires dealers to maintain motor vehicle liability insurance providing blanket coverage on vehicles operated on public streets and highways, including vehicles in dealership inventory. Evidence of coverage for both business and inventory vehicles is filed with the initial application and again at every renewal.

Your insurance agent will typically provide a certificate as proof. Tell the agent specifically that the policy is for a Mississippi motor vehicle dealer license so the coverage and certificate are written correctly, and confirm current minimum limits with DOR.

Coverage must stay active for as long as you are licensed. A lapse puts the license at risk.

Step 7

Surety bond

Mississippi requires a bond executed by a surety company qualified to do business in the state. For DOR-regulated dealers this is the designated agent bond, which supports your authority to perform titling duties on the state's behalf.

Mississippi is exacting about bond execution. The bond generally must carry a seal, have a valid power of attorney attached, be signed by the principal or principals as well as the attorney-in-fact and a Mississippi resident agent where indicated, and show the city of operation. The original is submitted — copies are not accepted.

Important: bond amounts in Mississippi vary by license category and by regulating agency, and they can change. Do not rely on any figure you find in a document, including an older bond quote. Confirm the current required amount, the correct bond form, and the correct obligee with your regulating agency or a licensed surety agent before you buy.

Step 8

Assembling and submitting the packet

The application form is part of a larger packet available from DOR. Complete the form, print the full packet, and complete the remaining documents — including any notarized affidavit the packet contains.

Supporting documents typically include your sales tax permit, the original surety bond with power of attorney, the notarized affidavit, your seminar completion certificate, and proof of liability insurance. Confirm the current checklist against the packet itself rather than any outside summary, including this one.

Assemble everything before submitting. Mississippi returns incomplete forms without processing rather than holding them pending correction, so a partial packet costs you the full round trip.

How Wayne Reaves Fits In

We want to be straightforward about what we do and do not do.

What we do not do

We do not file applications, form business entities, sell bonds or insurance, provide legal or tax advice, or interpret state requirements on your behalf. Those belong with DOR, your attorney, your CPA, and licensed agents. We receive no compensation or referral fee from bond or insurance providers.

What we do

We build dealer management software and dealer websites for independent dealers — inventory, deal tracking, customer records, reporting, compliance tools, and a website that puts your inventory in front of buyers.

One practical note: as a designated agent you will be performing titling work on the state's behalf and tracking tags issued. How you handle that recordkeeping is worth thinking about before your first sale rather than after.

Get set up before you open

The best time to choose your software is now — while you are still getting licensed. Notice how much of this process is really about how your dealership will keep records: titles, deal files, tax paperwork, books kept at your location. That is exactly what Wayne Reaves handles from day one. Dealers who get set up with us during licensing open their doors ready — inventory loaded, forms and deal paperwork in place, recordkeeping organized the way inspectors and auditors expect, and a website already live when the first customer searches for you.

Sign up while your application is in motion and we will have your system configured, your team trained, and your website built by the time the license is issued — so your first sale runs like your hundredth. We have been helping independent dealers open and grow since 1987, and getting started is simple: request a demo or call us, and we will walk you through it.

Where to Get Answers

Disclaimer

This guide is provided by Wayne Reaves Computer Systems Inc. as a general informational overview only. It is not legal, tax, financial, insurance, or licensing advice, and it does not create any professional or advisory relationship. Licensing requirements are established and administered solely by the State of Mississippi and are subject to change without notice. Wayne Reaves Computer Systems Inc. makes no representation or warranty as to the accuracy, completeness, or currency of the information here, and accepts no liability for any action taken in reliance on it. Verify all requirements directly with the Mississippi Department of Revenue or the Mississippi Motor Vehicle Commission, as applicable to your license type and consult qualified professionals before acting.

Reviewed July 2026. Reviewed quarterly.