How to Get a Mississippi Motor Vehicle Dealer License: Complete Step-by-Step Guide
Starting an independent used car dealership in Mississippi requires more than finding a lot and putting vehicles on the property. Before you can legally operate as a motor vehicle dealer, you need to obtain the appropriate permit from the Mississippi Department of Revenue (DOR) and satisfy the state's requirements for your dealership type.
For most independent used car dealers, the process involves establishing the business, obtaining a Mississippi sales tax number, completing dealer education, securing a $15,000 Bond of Designated Agent, obtaining the required motor vehicle liability insurance, completing the dealer application, and meeting the state's location and inspection requirements.
Mississippi's current dealer application is Form 76-105-26-8-1-000, revised February 2026, so dealers should use the current DOR application packet rather than older forms found online. (Mississippi Department of Revenue)
Here's a step-by-step look at how to get a Mississippi motor vehicle dealer license.
Who Needs a Mississippi Motor Vehicle Dealer License?
Businesses that engage in the business of buying, selling, exchanging, or dealing in motor vehicles generally need the appropriate Mississippi motor vehicle dealer permit.
Mississippi has several dealer categories, including:
Franchise new motor vehicle dealers
Used motor vehicle dealers
Wholesale-only dealers
Motorcycle dealers
Trailer-only dealers
Heavy truck dealers
Manufacturers
Dismantlers
ATV dealers
For a typical independent used car dealership selling vehicles to consumers, the relevant category is generally Used Motor Vehicles.
The current Mississippi dealer application lists a $100 permit fee for Used Motor Vehicles. (Mississippi Department of Revenue)
Step 1: Determine Your Dealer License Type
Before beginning the application, determine which type of dealer operation you will have.
The current Mississippi application lists the following categories and permit fees:
Dealer Type | Permit Fee |
Franchise — New | $100 |
Motorcycle | $50 |
Trailer Only | $75 |
Wholesale Only | $100 |
Used Motor Vehicles | $100 |
Dismantler | $100 |
Manufacturer | $50 |
Heavy Truck | $100 |
ATV | $100 |
The current application also states that the total permit amount is not to exceed $100, with dealer tag fees calculated separately. (Mississippi Department of Revenue)
If you're opening a traditional independent used car dealership, you'll generally select Used Motor Vehicles.
Choosing the correct category matters because different types of dealers can have different location, tag, insurance, and operating requirements.
Step 2: Establish Your Business
Before applying for your dealer permit, establish the business that will operate the dealership.
The Mississippi dealer application requests information such as:
Legal business name
DBA/business name
Primary address
Mississippi physical address
Business phone number
Business structure
Number of full-time employees
Sales tax number
FEIN
Dealer/permit number, when applicable
The current application provides options for a:
Corporation
Partnership
Sole proprietor
If you are forming an LLC or corporation, make sure the business information you use throughout the licensing process is consistent.
This is particularly important when obtaining your dealer bond.
Step 3: Obtain a Mississippi Sales Tax Number
Mississippi requires a sales tax number as part of the motor vehicle dealer licensing process.
The DOR's dealer application instructions state that a sales tax number is required for each motor vehicle dealer location. If the business also operates a vehicle rental operation, another sales tax number is required for that activity. (Mississippi Department of Revenue)
You'll need the sales tax number for your dealer application.
This means sales tax registration should be handled early in the licensing process rather than waiting until your application is ready to submit.
Step 4: Establish Your Dealership Location
For a retail dealership, your business location is an important part of the licensing process.
Mississippi's dealer rules address the dealership's established place of business, including requirements concerning the business premises, records, signage, and operation.
The DOR's dealer materials describe an established place of business as a location owned or leased and regularly occupied primarily for buying, selling, bartering, exchanging, or dealing in motor vehicles, where required dealership books and records are maintained.
The dealer rules also address the dealership's office, lot, and signage.
Before committing to a location, verify that it meets the applicable Mississippi requirements as well as any local zoning requirements.
Don't sign a long-term lease before checking the location.
Make sure the location is appropriate for:
Local zoning
Vehicle display
Customer access
Required signage
Dealership operations
Recordkeeping
DOR requirements
Mississippi's current application instructions also state that a site visit will be performed for businesses retailing to the public. (Mississippi Department of Revenue)
Step 5: Complete the Required Dealer Education
Mississippi requires people applying for a Motor Vehicle Dealer Permit to complete an eight-hour educational seminar conducted by the Mississippi Independent Auto Dealers Association (MIADA).
The certificate of completion must be for a class completed during the 12-month period immediately preceding the date of the application. (Mississippi Department of Revenue)
This means you should plan the timing of your education carefully.
If you complete the course too early and wait too long to apply, the certificate may fall outside the required 12-month period.
Keep the original certificate because it must accompany the dealer application.
Step 6: Obtain the $15,000 Mississippi Dealer Bond
One of the most important requirements for a Mississippi motor vehicle dealer is the Bond of Designated Agent.
The current Mississippi DOR dealer application instructions require a:
$15,000 Bond of Designated Agent
The bond must be written by an insurance company qualified to do business in Mississippi. The DOR instructions also specify requirements concerning the bond's execution, seal, Power of Attorney, business name, signatures, and business location. (Mississippi Department of Revenue)
The Mississippi DOR identifies the Designated Agent Bond as Form 78-905. (Mississippi Department of Revenue)
What is the dealer bond?
The dealer bond is a surety bond, not insurance.
The bond provides a financial guarantee associated with the dealer's responsibilities as a designated agent.
The $15,000 figure is the bond amount, not necessarily the amount the dealer pays for the bond.
A dealer generally pays a premium to obtain the bond, with the premium depending on the underwriting and characteristics of the applicant.
Make sure the bond is completed correctly.
Mississippi's instructions contain specific requirements for the bond.
For example, the DOR instructions state that:
The bond must be for $15,000.
The surety must be qualified to do business in Mississippi.
A seal must be affixed.
A valid Power of Attorney must be attached.
Business names must be shown correctly.
Required principals must sign.
The Mississippi resident agent must sign where required.
The business city must be shown in the specified location.
An incorrectly prepared bond can delay the application.
Step 7: Obtain the Required Dealer Insurance
Mississippi also requires motor vehicle dealers to maintain motor vehicle liability insurance providing blanket coverage for vehicles operated on public streets and highways in Mississippi, including vehicles in dealership inventory.
Evidence of the required liability insurance must be filed with the initial application and at renewal. (Mississippi Department of Revenue)
The current instructions specifically exclude Trailer Only and Dismantler Only applicants from this liability insurance requirement. (Mississippi Department of Revenue)
For a traditional used car dealership, insurance should be arranged before submitting the dealer application.
Dealers may also want to evaluate other coverage appropriate for their operations, including:
The required insurance and the dealer bond serve different purposes, so one does not replace the other.
Step 8: Complete the Mississippi Dealer Application
Once your business, sales tax registration, location, education, bond, and insurance are ready, you can complete the Mississippi dealer application.
The current application is:
Form 76-105-26-8-1-000 — Application for Motor Vehicle Dealer License
The current version is marked Rev. 2/26. (Mississippi Department of Revenue)
The application asks for information including:
Legal name
Business name/DBA
Business structure
Primary address
Mississippi physical address
County code
Phone number
Number of full-time employees
Sales tax number
FEIN
Dealer/permit number
Dealer type
Number of dealer tags requested
Review every section carefully before signing.
Step 9: Prepare the Required Application Documents
The Mississippi DOR's dealer application instructions identify the documents that must accompany the application.
For a typical dealer application, this includes:
Completed dealer application
Assigned sales tax number
Required notarized affidavit, when applicable
MIADA educational seminar certificate
Proof of required liability insurance
The DOR states that incomplete forms can be returned without processing, so review the entire application package before submitting it.
Step 10: Submit Your Dealer Application
The Mississippi Department of Revenue provides the dealer application packet through its Dealers and Designated Agents resources.
The DOR's current dealer page states that applicants should complete and mail all documents in the packet. It also provides access to Motor Vehicle e-Services for dealer-related functions. (Mississippi Department of Revenue)
The dealer application instructions list the Mississippi Department of Revenue Motor Vehicle Services as the destination for the completed application package. (Mississippi Department of Revenue)
Before mailing your application, make a complete copy of everything you're submitting for your dealership's records.
Step 11: Prepare for the DOR Site Visit
Retail dealers should be prepared for the Mississippi Department of Revenue's site visit.
The current application instructions specifically state:
"A site visit will be performed for businesses retailing to the public."
Your dealership should therefore be ready before the application process reaches this stage.
Make sure your:
Business location is ready
Dealership signage is installed as required
Lot is properly prepared
Office is operational
Business information is accurate
Required records can be maintained at the location
The goal is to make sure the location actually corresponds with the dealership described in your application.
Step 12: Apply for Dealer Tags
Dealer tags are separate from the basic permit fee.
The current Mississippi application allows dealers to request the number of tags they need and calculates the applicable tag fees.
For standard motor vehicle dealer tags, the current application lists:
First 12 tags: $43.75 each
Additional tags: $83.75 each
The current application lists different tag fees for other dealer categories. (Mississippi Department of Revenue)
If you request dealer tags, make sure your dealership understands how they can be used and what records must be maintained.
Mississippi provides a Dealer Tag Daily Log for tracking dealer tag use. The DOR's current forms list identifies the Dealer Tag Daily Log as Form 77-105. (Mississippi Department of Revenue)
Step 13: Understand Mississippi Dealer Tag Recordkeeping
Getting dealer tags creates additional recordkeeping responsibilities.
The Mississippi Dealer Tag Daily Log is designed to record information associated with dealer tag use, including items such as:
Date
Dealer tag number
VIN
Vehicle information
Vehicle color
Person assigned the tag
Purpose
Maintaining accurate records helps the dealership demonstrate that dealer tags are being used appropriately.
Don't let dealer tags become something employees use without documenting their use.
Step 14: Know Your Mississippi Dealer Permit Expiration Date
Mississippi's current dealer application states:
All permits and tags expire October 31.
That makes October 31 an important date for Mississippi dealers.
Don't wait until the expiration date to discover that your liability insurance, surety bond, application information, or other requirements need attention.
Establish an internal renewal reminder well before October.
How Much Does a Mississippi Dealer License Cost?
For an independent used motor vehicle dealer, the current application lists a:
$100 permit fee
Dealer tags are additional.
The current application lists:
$43.75 per tag for the first 12 regular motor vehicle dealer tags
and:
$83.75 for each additional regular motor vehicle dealer tag
However, the permit fee isn't the total cost of opening a dealership.
You'll also need to consider:
Dealer education
Business formation
Sales tax registration
Dealership location
Signage
Dealer tags
Local business expenses
Inventory
Operating expenses
How Much Is the Mississippi Dealer Bond?
$15,000
This is the required Bond of Designated Agent for motor vehicle dealers under the current DOR dealer application instructions. (Mississippi Department of Revenue)
It's important to understand the difference between the bond amount and the bond premium.
If you need a $15,000 surety bond, you don't necessarily pay $15,000.
The $15,000 is the penal sum of the bond.
The dealer pays a premium to obtain the bond, and the premium depends on the surety's underwriting.
What Insurance Does a Mississippi Auto Dealer Need?
Mississippi requires motor vehicle dealers to maintain motor vehicle liability insurance providing blanket coverage for vehicles operated on public streets and highways, including vehicles in the dealership's inventory. Proof of that coverage is required with the initial application and at renewal. (Mississippi Department of Revenue)
Dealers should also consider whether their business needs additional commercial coverage.
For example:
Garage Liability
Can provide liability protection for covered dealership operations.
Dealer Open Lot Insurance
Can protect covered dealership inventory against specified physical damage risks.
Commercial Property Insurance
Can address covered risks involving the dealership's building and business property.
The appropriate coverage depends on the dealership's operations and risk profile.
What Are the Requirements for a Mississippi Wholesale Dealer?
Mississippi also offers a Wholesale Only dealer category.
Wholesale dealers are treated differently from retail dealerships.
According to the current DOR instructions, wholesale-only dealers:
May sell only to licensed dealers
May not retail vehicles to individuals
Are not required to have a physical location
May maintain an inventory of up to two vehicles
Can receive one wholesale dealer tag
Must be Mississippi residents
Receive a wholesale sales tax account number
If your business will only sell vehicles to other licensed dealers, make sure you understand the wholesale requirements before applying.
Don't apply as a standard retail used dealer if your intended operation is wholesale-only.
Mississippi Dealer License Checklist
Before submitting your application, review this checklist.
Business Setup
☐ Determine dealer type
☐ Establish business entity
☐ Obtain FEIN
☐ Obtain Mississippi sales tax number
☐ Establish qualifying physical location if required
Education
☐ Complete 8-hour MIADA dealer seminar
☐ Verify certificate is within 12 months of application
Dealer Bond
☐ Use a surety authorized in Mississippi
☐ Verify legal business name
☐ Attach required Power of Attorney
☐ Obtain required signatures
Insurance
☐ Obtain required motor vehicle liability insurance
☐ Prepare proof of insurance
Location
☐ Verify local requirements
☐ Prepare dealership office
☐ Prepare dealership lot
☐ Install required signage
☐ Prepare for DOR site visit
Application
☐ Complete Form 76-105-26-8-1-000
☐ Select correct dealer type
☐ Include sales tax number
☐ Include dealer bond
☐ Include education certificate
☐ Include insurance documentation
☐ Include applicable affidavit
☐ Pay applicable permit fee
After Approval
☐ Obtain dealer permit
☐ Obtain dealer tags if needed
☐ Maintain dealer tag records
☐ Maintain required dealership records
☐ Track October 31 expiration
Common Mississippi Dealer Licensing Mistakes
1. Using an Outdated Application
Mississippi's current dealer application is dated February 2026.
Always check the DOR's current dealer resources before submitting your application. (Mississippi Department of Revenue)
2. Incorrect Bond Information
The surety bond needs to correctly identify the principal and satisfy the DOR's execution requirements.
An incorrectly prepared bond can delay your application.
3. Taking the Education Course Too Early
The education certificate needs to be from a class completed during the 12-month period immediately preceding the application. (Mississippi Department of Revenue)
4. Forgetting the Sales Tax Number
The sales tax number is a required part of the dealer application process.
5. Applying Before the Location Is Ready
Retail dealers should be prepared for a DOR site visit.
6. Treating the Bond Like Insurance
The dealer bond and liabiltiy insurance serve different purposes.
You may need both.
7. Waiting Until October to Think About Renewal
Mississippi dealer permits and tags expire October 31.
Build renewal preparation into your dealership's annual calendar.
Dealer Bond vs. Dealer Insurance
New dealers often confuse these two requirements.
They're not the same thing.
Dealer Bond
The $15,000 Bond of Designated Agent is a surety bond required as part of Mississippi's dealer licensing requirements. (Mississippi Department of Revenue)
It provides a financial guarantee connected to the dealer's obligations under the applicable requirements.
Dealer Insurance
Mississippi requires motor vehicle liability insurance providing blanket coverage for applicable vehicles operated on public roads, including inventory vehicles. (Mississippi Department of Revenue)
Insurance addresses covered risks under the policy.
The bottom line:
The bond does not replace insurance, and insurance does not replace the bond.
What Happens After You Get Your Mississippi Dealer License?
Getting your permit is only the beginning.
Once your dealership is operating, you'll need to maintain compliance with applicable Mississippi requirements.
That can include:
Keeping your permit current
Properly handling vehicle titles
Maintaining dealer records
Following dealer tag requirements
Maintaining dealer tag logs
Properly handling sales and tax documentation
Keeping business information current
Renewing before expiration
Mississippi DOR also provides Motor Vehicle e-Services that allow licensed dealers to perform certain dealer and title-related functions electronically. (Mississippi Department of Revenue)
Mississippi Dealer Title Responsibilities
Dealer licensing is closely connected to title processing.
Mississippi DOR provides motor vehicle title services and designated-agent functions through its Motor Vehicle Services division.
The department's current resources include electronic services for dealers and designated agents, including title application processing and other records-related functions. (Mississippi Department of Revenue)
Dealers should establish procedures for handling:
Vehicle titles
Title assignments
Odometer disclosures
Liens
Title applications
Customer documentation
Records retention
Mississippi also provides specific forms for dealer and title transactions, including the Odometer Disclosure Statement (Form 78-015) and Dealer Tag Daily Log (Form 77-105). (Mississippi Department of Revenue)
What If You Buy a Vehicle Without a Title?
Title problems can become a serious issue for dealers.
Mississippi DOR states that if a vehicle is purchased without a title and the title cannot be obtained, a title bond may be required to obtain a bonded title.
The DOR's FAQ explains that this can involve a surety bond for one and one-half times the average trade-in value of the vehicle, along with an Affidavit of Ownership and Bill of Sale. (Mississippi Department of Revenue)
This is separate from the dealer's $15,000 Bond of Designated Agent.
That distinction is important:
Dealer bond ≠ title bond.
They serve different purposes.
Final Thoughts
Getting a Mississippi motor vehicle dealer license requires several steps, but preparing the requirements in the right order can make the process much easier.
For an independent used car dealer, the process generally involves:
Determine your dealer category.
Establish your business.
Obtain a Mississippi sales tax number.
Establish a qualifying dealership location.
Complete the required 8-hour MIADA education seminar.
Obtain the $15,000 Bond of Designated Agent.
Obtain the required motor vehicle liability insurance.
Complete the Mississippi dealer application.
Submit the required documents and fees.
Prepare for the DOR site visit if you're operating a retail dealership.
Obtain dealer tags if needed.
Maintain your bond, insurance, records, and permit.
Track the October 31 expiration date.
The Mississippi Department of Revenue's dealer requirements can change, so dealers should always verify the current application and requirements before submitting their paperwork. The current DOR dealer application is revised February 2026. (Mississippi Department of Revenue)
Need a Mississippi Dealer Bond or Insurance?
Getting your Mississippi dealer permit is only one part of opening your dealership.
You also need the appropriate dealer bond and insurance to satisfy the state's requirements and protect your business against covered risks.
All American Bonds and Insurance specializes in helping independent auto dealers with dealer bonds and commercial insurance.
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Frequently Asked Questions
How do I get a Mississippi motor vehicle dealer license?
You must complete the Mississippi Department of Revenue's dealer application process and satisfy the requirements applicable to your dealer type. For a typical used motor vehicle dealer, this includes a sales tax number, $15,000 Bond of Designated Agent, required dealer education, proof of liability insurance, the application and fee, and applicable location requirements. Retail dealers also undergo a DOR site visit. (Mississippi Department of Revenue)
How much is a Mississippi used motor vehicle dealer permit?
The current Mississippi dealer application lists a $100 permit fee for Used Motor Vehicles. Dealer tags are subject to additional fees. (Mississippi Department of Revenue)
How much is the Mississippi dealer bond?
The required Bond of Designated Agent for a motor vehicle dealer is $15,000. The $15,000 is the bond amount, not necessarily the premium the dealer pays to obtain the bond. (Mississippi Department of Revenue)
Does Mississippi require dealer education?
Yes. Applicants must complete an 8-hour educational seminar conducted by the Mississippi Independent Auto Dealers Association (MIADA). The certificate must be from a class completed within the 12 months immediately preceding the application. (Mississippi Department of Revenue)
Does Mississippi require dealer insurance?
Yes. Motor vehicle dealers must maintain motor vehicle liability insurance providing blanket coverage for vehicles operated on Mississippi public streets and highways, including dealership inventory vehicles. Proof is required with the initial application and at renewal. (Mississippi Department of Revenue)
Does a Mississippi used car dealer need a physical location?
Retail dealerships generally need an established place of business. Mississippi's current dealer application also states that a site visit will be performed for businesses retailing to the public. (Mississippi Department of Revenue)
Can I become a wholesale dealer without a physical dealership?
Mississippi's current DOR instructions state that wholesale-only dealers are not required to have a physical location. However, they may sell only to licensed dealers, may maintain an inventory of two vehicles, may receive one wholesale dealer tag, and must be Mississippi residents. (Mississippi Department of Revenue)
When does a Mississippi dealer permit expire?
The current Mississippi dealer application states that all permits and tags expire October 31. (Mississippi Department of Revenue)
What is the difference between a Mississippi dealer bond and dealer insurance?
The dealer bond is a required surety bond associated with the dealer's obligations as a designated agent. Dealer insurance provides coverage for specified risks under the applicable insurance policy. Mississippi requires the applicable bond and motor vehicle liability insurance separately. (Mississippi Department of Revenue)
Where can I get the Mississippi dealer application?
The Mississippi Department of Revenue provides the current dealer application packet through its Dealers and Designated Agents page. The current application is Form 76-105-26-8-1-000, revised February 2026. (Mississippi Department of Revenue)
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