Licensing Requirements

To become an automobile dealer in the District of Columbia, your first step will be to register your dealership with the Department of Motor Vehicles (DMV). Bring the following original documents in person to the DMV:

• Your DC business license (bring both the original and a copy to leave for the record)

• Your Certificate of Occupancy Permit

• The driver's licenses of all of the dealership's owners

• All of your salespeople's licenses

• Your Federal Tax ID Form with tax ID number

It's important to note that although it is free to register your dealership with the DMV, the registration expires on October 31 of each year. Also be aware your DMV dealer registration is separate from the business license issued to you by the Department of Consumer and Regulatory Affairs.

The DMV dealer registration gives you the privilege to reassign titles, order and use dealer and transport tags, and get dealer proofs of ownership. Only dealerships based in the District of Columbia are permitted to obtain DMV registrations.

Next you'll need to get dealer or transport tags. Bring your Dealer Tag Insurance Policy, which specifies the number of dealer tags that you are insured for. Then you'll need to pay the required fee.

Opening up a car dealership can be an exciting yet complicated process. Refer to this list of DMV service locations to find the branches that handle dealer transactions.