How to Start a Car Dealership in Utah: MVED Dealer License, Bond and Lot Requirements

If you are researching how to start an auto dealer business in Utah, the agency that controls your license is the Motor Vehicle Enforcement Division (MVED) of the Utah State Tax Commission. MVED licenses the dealership, inspects the lot, and sets the bond and training rules. The process has more moving parts than a standard business formation, and the order you do things in matters. Get the sales tax account before you apply to MVED, and do not sign a lease until you have checked the lot rules.

This guide walks through the full sequence in the order most new dealers find works: forming the business, the local and tax registrations, the lot, the bond, the training and fingerprints, and finally the MVED license itself. Fees and timelines are taken from the agency sources listed below. Where a figure is not confirmed here, the article says so and tells you which agency to confirm it with.

What You Need Before You Start

• A business entity, usually an LLC or a corporation, registered with the Utah Division of Corporations and Commercial Code
• A Utah registered agent with a Utah street address
• A Utah sales tax license from the Utah State Tax Commission (application TC-69)
• A city or county business license for the location where you operate
• A qualifying lot with room for at least three vehicles, a permanent enclosed office, and a permanent sign of at least 24 square feet
• A corporate surety bond: $75,000 for new or used motor vehicle or large trailer dealers, or $10,000 for motorcycle or small trailer dealers (form TC-450)
• The MVED dealer application (TC-301), the fee, and the fingerprint fee or waiver (TC-465) for each owner, partner, officer or member
• Proof that each owner, partner, officer or member has completed the 8-hour orientation course

Step 1: Choose a Business Structure and Form It

Most independent dealers form a limited liability company (LLC). A corporation works too. The state filing is the Certificate of Organization for an LLC and the Articles of Incorporation for a corporation. Either one costs $59 to file. You file through the Utah Business Registration System at businessregistration.utah.gov, which requires a UtahID login.

Most online filings are processed and approved instantly. Filings that need manual review are stated as 2 to 4 business days from receipt, and the Division has posted current processing times of 7 to 10 business days during backlogs. Expedited processing is $75 per filing. Reserving a name costs $22 and holds it for 120 days, which helps if you need time to finish your lot paperwork first.

The LLC name must include "limited liability company," "limited company," "LLC," "L.L.C.," "LC," or "L.C." It must also be distinguishable from existing Utah entity, reserved, registered, and assumed names. A name that suggests the company is a state agency or political subdivision will be refused.

For tax, an LLC has no separate franchise tax. By default it is taxed as a partnership or sole proprietorship, with income passed through to members and taxed at Utah's 4.45 percent individual income tax rate (2026). An LLC that elects corporate treatment pays the 4.45 percent corporate franchise and income tax, with a $100 minimum tax. Confirm which structure fits your ownership and tax position with a CPA. This article is not tax advice.

Step 2: Register an Assumed Name (DBA) If You Need One

If the dealership will operate under a name other than the exact name on your entity filing, you need an assumed name registration, also called a Business Name Registration. It costs $22 to register. Check the Division's DBA page for the renewal term and fee. Many new dealers miss this step. An assumed name is filed with the Utah Division of Corporations and Commercial Code, which is statewide. It is not filed with the county. Use the Division's DBA page at https://commerce.utah.gov/corporations/business-entities/dba/ to file.

Step 3: Appoint a Registered Agent

Every registered entity must name a registered agent for service of process. The agent needs a Utah street address. A PO box may be listed only in addition to a street address. The agent can be an individual, a business entity registered with the Division and in good standing, or a commercial registered agent. A commercial registered agent registration costs $52. Appointing an agent is your affirmation that the agent has agreed to serve, so confirm that before you list someone.

Step 4: Get the Local Business License

Utah does not issue a statewide general business license. Registering your entity with the Division is a registration, not a license. After registering, you must get a business license from the city or town where the dealership is located. Outside city limits, the license comes from the county. A license from one city does not transfer to another, so if you move the lot, you will need a new one.

Confirm the zoning before you sign anything. Auto sales are regulated locally, and a parcel that is zoned for another use may not be approved for a dealership even if the building is vacant and available. Ask the city planning office whether auto sales are allowed at that address, and get the answer in writing. Fees for the local license are set by each city or county, so confirm the amount directly with that office.

Step 5: Register for a Utah Sales Tax License

A dealer with an established presence in Utah needs a Utah sales tax license from the Utah State Tax Commission. Apply through the Taxpayer Access Point (TAP) at https://tap.tax.utah.gov/TaxExpress/_/?Link=TapBr using the TC-69 application. Do this before you apply to MVED, because MVED expects the sales tax account to be in place.

The sales tax rate depends on where you sell. The state rate is 4.85 percent, and combined state and local rates run from 6.35 percent to 9.55 percent, and up to 10.05 percent in some special districts, depending on the jurisdiction. Confirm with the Tax Commission at https://tax.utah.gov/ how sales tax applies to your vehicle transactions and what returns you will file.

Step 6: Secure a Qualifying Lot

This is where most applications stall. MVED requires the following before it will inspect the site:

• Display space for at least three vehicles, marked by a fence or chain
• A permanent enclosed office, not shared with another business
• A permanent sign of at least 24 square feet

Do not sign a long lease, or buy a lot, until you have checked these requirements against the actual layout. A shared office, a temporary sign, or a display area that is not clearly marked will fail inspection. Bring the zoning answer from Step 4 to the lease negotiation, and ask the landlord to confirm in writing that the space can be used for auto sales.

Step 7: Obtain the Corporate Surety Bond

You must post a corporate surety bond with MVED. The amount is $75,000 for new or used motor vehicle dealers and large trailer dealers, and $10,000 for motorcycle or small trailer dealers. The bond form is TC-450, and the application is TC-301. You buy the bond from a surety company, which may review your credit and business history before issuing it. The premium you pay is not set by the state, so ask several surety agents for quotes before you commit. Plan for the underwriting time, since the bond has to be in place before the MVED application is complete.

Step 8: Complete Orientation and Fingerprints

Every owner, partner, officer or member must complete an 8-hour orientation course. Each one also needs a Bureau of Criminal Identification (BCI) fingerprint check, which costs $30 per person. If a person qualifies for a fingerprint waiver, MVED uses form TC-465 for that request. Confirm eligibility with MVED before you assume the waiver applies, because the fee is charged per person and a missed fingerprint check can hold up your application.

Keep the course certificates with your application file. You will need to complete a 3-hour training class each year to renew, so schedule it on your calendar at the start.

Step 9: Submit the MVED Dealer Application

With the entity, sales tax license, local license, lot, bond, and training documents in hand, submit the MVED application and pay the license fee. The fee is $127 for a new or used motor vehicle dealer license and $51 for a motorcycle, OHV or small trailer dealer license.

After you submit, MVED schedules a site inspection. Expect the inspection to take 5 to 10 working days to schedule and complete. After a passing inspection, the license is issued in another 3 to 5 working days. Every MVED license expires June 30 and is not prorated. If you apply in the fall, you still pay the full fee, so timing the application around the expiration date can save money, though you still need the lot and bond in place to pass.

Step 10: Order Dealer Plates

Dealer plates cost $12 each, plus a small handling fee. The plate limit is 5, and plate insurance applies. Plan your plate order around your inventory and test drive routine, and confirm the current limit with MVED before you order.

Step 11: License Your Salespeople Separately

Dealership ownership does not cover the people who sell cars for you. Salespeople are licensed separately through MVED. Do not allow anyone to sell before their license is issued. Confirm the salesperson application, fee, and requirements with MVED, since this article does not list those figures.

Costs at a Glance

Item	Cost or requirement	Where it is handled
LLC Certificate of Organization or corporation Articles of Incorporation	$59 filing fee	Division of Corporations and Commercial Code
Expedited processing	$75 per filing	Division of Corporations and Commercial Code
Name reservation	$22, holds the name for 120 days	Division of Corporations and Commercial Code
Annual renewal (LLC or corporation)	$18 per year	Division of Corporations and Commercial Code
Assumed name (DBA)	$22 to register; renewal term and fee on the Division's DBA page	Division of Corporations and Commercial Code
Commercial registered agent	$52	Division of Corporations and Commercial Code
Local business license	Set by the city or county, confirm locally	City or county office
Utah sales tax license (TC-69)	Confirm with the Tax Commission	Tax Commission, TAP
Corporate surety bond (TC-450, application TC-301)	$75,000 new or used or large trailer; $10,000 motorcycle or small trailer	Surety company
BCI fingerprint fee	$30 per owner, partner, officer or member, unless waived (TC-465)	MVED
Orientation course	8 hours per owner, partner, officer or member; confirm course cost with the provider	MVED
MVED dealer license	$127 new or used motor vehicle; $51 motorcycle, OHV or small trailer	MVED
Dealer plates	$12 each plus a small handling fee, limit 5, with plate insurance	MVED
Annual renewal training	3 hours each year	MVED

Common Mistakes to Avoid

• Leasing the lot first. A lot that fails the zoning, fence, office, or sign rules cannot be fixed in a single afternoon. Confirm the requirements before you sign.
• Using a shared office. MVED requires a permanent enclosed office that is not shared with another business. A desk in a neighbor's space does not meet the rule.
• Assuming a city license transfers. A license from one city does not carry over to another city. Move the lot and you need a new local license.
• Filing the DBA with the county. Assumed names are filed with the state Division, statewide.
• Skipping the sales tax account. Get the Utah sales tax license before the MVED application, not after.
• Expecting proration. MVED licenses expire June 30 and are not prorated, so the full fee applies whenever you apply.
• Waiting on the bond. Surety underwriting takes time. Get quotes early and keep the bond out of the last week before your planned opening.
• Letting unlicensed staff sell. Salespeople are licensed separately, and every sale they make before their license is issued is a problem.

Expected Results

Following these steps in order may help you move from a blank plan to a licensed dealership without the rework that comes from skipping a registration or signing a lease too early. The timing can vary. Filings that are approved instantly may move quickly, while manual review, bond underwriting, a site inspection that needs a second visit, or a zoning question can add weeks. Plan for several months from entity formation to a licensed lot, and treat the published processing times as estimates rather than guarantees. Your results depend on your location, your lot, your ownership, and how quickly the agencies respond.

Utah Small Business Development Center (Utah SBDC) advisors at https://utahsbdc.org/ can help you check your plan before you spend money on the lot or the bond. The SBA's Utah district page at https://www.sba.gov/district/utah lists other local resources.

Next Steps

Start with the entity filing and the sales tax account, since both are needed before MVED will act on your application. While those are in progress, check zoning and lot requirements with the city, and get bond quotes so you know the cost before you commit to a space. Confirm every fee marked as "confirm" with the named agency, and keep copies of each receipt and approval in one file for your MVED application.

Important Disclaimer

This article is informational only. It is not legal, tax, or licensing advice, and it does not create an attorney-client or accountant-client relationship. Requirements and fees can change, and the figures here reflect the sources listed above at the time of research. Before you form the business, sign a lease, or buy a bond, consult a qualified Utah attorney about your ownership and liability, and a CPA about your tax treatment. For the official rules, go to the Utah Motor Vehicle Enforcement Division at https://dmv.utah.gov/mved, the Division of Corporations and Commercial Code at https://commerce.utah.gov/corporations/, and the Utah State Tax Commission at https://tax.utah.gov/.