Instructions:
1. Register your company entity with the state of California. You must obtain a federal Tax Identification Number from the Irs under the name of your business. You can make use of the business registration forms and the TIN to open a banking account in the name of the business.
2. Complete an application for original occupational license which you'll obtain from the nearest office of the California Department of Cars. The form includes your personal information, the name and address of your business and details the kind of inventory that you plan to sell. As of 2011, you have to pay a nonrefundable $176 fee when you submit the applying; attach a check to the application.
3. Obtain a copy of the vehicle dealer application checklist as well as other documents that are required to complete such as the home use verification form that details the dealership location. You have to sign a form giving the DMV authorization to carry out a background check. You must also obtain a surety bond with a minimum of $50, 000 of coverage from a state licensed connecting firm.
4. Enroll in a dealer education program should you plan to sell used vehicles. Upon completion of the class you'll receive a certificate. You must put this document using the other documents on the application checklist and submit the whole package to the DMV. You can begin operations once the DMV has approved the application.
5. Purchase inventory through wholesalers or from consumers and businesses. Lenders typically do not offer financing to businesses which have been operating for less than two years; do not deplete your money supplies by purchasing too much inventory. You should hire sales staff to help you make sales although you might want to operate with minimal staff until your dealership is much better established.