10 Steps to a Texas Dealers License (General Distinguishing
10 Steps to Obtain a General Distinguishing Number (GDN)
1. Dealer Educational Course Any person applying
for a Texas Dealers License or
General Distinguishing Number for the first time or licensed
for the first time is required to take a 6-hour web-based
dealer educational course. Any person that has had a TX Dealer
License less than 10 years as of September 1,
2009 is also required to take the 3-hour web-based
license educational course. You will receive a Certificate of
Completion at the end of this course. Be sure to enclose the
certificate in your dealer license application submission.
When you complete your online training, you will be
confident and prepared to operate a licensed Texas
dealership. You must
submit your dealer license application through the TxDMV eLicensing
website. Your application must be submitted online and can
no longer be mailed. We cover the application process
extensively in your dealer training course.
You may submit your dealer license application at https://texasdmv.force.com/customers/lace_login
. The application process is quite extensive and must be
completed correctly and in its entirety. Mistakes on your
dealer application can cause significant delays in your
licensing process. We will submit
a dealer license application online in your dealer training
course. We will ensure you know how to apply correclty for
Business Building You must have a place of business
to gain a Texas
Dealers License. The building must meet all local zoning
requirements. You must have an office in the building for
the operation of your dealership and you are required by law
to display your Dealer
License. If the office is located at a private
residence, it must be completely separate from the actual
residence and must meet the zoning requirements from that
city or county. Your office must include, at minimum, a
desk, two chairs, internet access, and a working telephone
listed in your dealership name. If a dealer shares their
location with another business, the dealer must have their
own office area. The dealer must own the property where the
license is located or must lease the property for the entire
term of the dealer’s license. The State allows
up to four retail dealers or not more than 8 wholesale
dealers to operate out of one business building. We cover
the building require more extensively in your
Texas dealer training course.
Display Area You must have a display area has
sufficient space to display 5 of the vehicle types the
dealer is selling. The display area may be located outside
of the building or inside the building. The display lot cannot be a driveway and
must be a hard surface such as concrete or gravel. Some
local zoning ordinances may require a dealer display lot to
be paved. The lot must meet all local zoning requirements. If a dealer is going to operate at night the display
area must be illuminated. Wholesale vehicle dealers are
exempt from the display area requirement. You will learn
more in your dealer course.
Surety Bond You must obtain a $25,000 dealer surety
bond in order to obtain an
Texas Used Motor Vehicle Dealer's
License. With good credit you should be able to get a
25,000 dealer surety bond for $200 to $300 per year. If you
have a couple of blemishes on your credit score the price
can be much higher. Franchised dealers, travel trailer
dealers, and utility/semitrailer dealers are exempt from the
dealer surety bond requirement. We cover dealer bonds in
depth in your dealer license training.
Business Sign You will need a permanent business sign
that is visible from the public roadway. The dealership name
on the sign must be at least 6 inches or larger.
The sign must be permanent in
nature and be clearly visible to the public. Wholesale dealers must have the sign mounted on or next to
the office door with the business name in at least 2 inch
letters. Be sure the letters in the dealership name meet the
minimum height requirements under Texas law.
Business Hours A retail
Texas dealer must be open at least
4 days a week for at least 4 consecutive hours per day. A
wholesale dealer must be open at least 2 days per week for
at least 2 consecutive hours per day. Travel
trailer and trailer/semi-trailer dealers may operate 7 days
a week. If a person holds a motor vehicle license and a
trailer license, they may open on Saturdays and Sundays but
cannot sell motor vehicles on Saturday and Sunday. Motor
vehicles may only be sold on a Saturday or Sunday, never on
both days. We will discuss hours of operation extensively in
your 6 hour web-based dealer license class.
7. Records You must maintain
records on all vehicles purchased, leased, and sold for a
minimum of 48 months. Just copy every document that
comes accross your desk. We will review an entire section on
exactly what records to keep in your licensing course.
Register Business Name with Texas Secretary of State
You must register your business name with the Texas
Secretary of State’s office. The Texas
Secretary of State wants to have a record of every business
that is operating the in the state. Registering your
business with the Secretary of State is covered in great
in your dealer training course. We walk you step by step
through the entire SOS registration process, it is very easy.
9. Federal Employee Identification Number (EIN)
Before submitting your dealer application you must obtain a
Federal Employee Identification Number which is also known
as a Federal Tax ID Number or EIN. This number is used to
identify the new business you are starting and will be
needed for tax purposes. Obtaining this number is a very
quick and easy step that will only take a few minutes. You
can easily apply online and
have your new Federal Employee Identification Number in a
matter of moments. After you have been assigned your EIN be
sure to include it on your dealer license submission. We
will cover the EIN registration extensively in the course.
10. Follow all State and Federal Laws In your dealer license training course we are going to show you how to comply with all State laws that come out of Austin and the Federal laws that come out of Washington. If you follow every state and federal law you will be able to achieve much higher profits. If you maintain 100 percent compliance you will maintain 100 percent profits.
The Texas Department of Motor Vehicles is basically giving you a license to make as much money as you possibly can, as long as you are following ALL the rules, in your Texas Dealer License course, we will show you how easy it is to follow all the rules.
We are here to help you start obtain
a Texas Dealers License (GDN)!
Delus Johnson-Lead Instructor Automobile Dealer