To apply, you must:
9 Kentucky Dealer License Requirements
Kentucky Dealer Licenses are issued by the Kentucky Motor Vehicle Commission. This page covers Kentucky's 10 Dealer License types, their requirements, bond size, costs, and how to apply.
Name your Dealership
Your company name is the first step, because you use it through the entire Dealer License process. Kentucky's dealer application accepts a sole proprietorship, partnership, corporation, or LLC.
An LLC keeps your business separate from your personal life and adds trust to the name. An LLC or corporation sends a filed copy of its Articles with the application. A partnership files an Assumed Name Certificate with the Secretary of State and the county clerk.
Start as an LLC or corporation, because changing from a sole proprietorship later requires a new, complete application. The Commission treats it as a majority change of ownership and issues a new license certificate. Adding an owner who takes no more than 50% is a partial application, not a new license.
Choose your Dealer License Type
Kentucky's dealer application, TC 98-1, lists 10 Dealer License types on one form, each with a $200 license fee. A Dealer holding 2 types pays $200 for each. Anyone who personally sells, including an owner, also holds a $40 Motor Vehicle Salesperson license, which is not a Dealer License type.
| License Type | What It Lets You Do |
|---|---|
| Used Motor Vehicle DealerIncludes wholesale activity | Buy and sell used motor vehicles. Motorcycles and recreational campers are their own license types |
| New Motor Vehicle DealerFranchised | Sell new vehicles as a franchised Dealer |
| Wholesale Motor Vehicle DealerStandalone | Sell to licensed Dealers only. The one type that needs no exterior sign; every other office rule still applies |
| Motor Vehicle Auction Dealer | Run a motor vehicle auction |
| Motor Vehicle Leasing Dealer | Lease motor vehicles |
| Motorcycle Dealer | Sell motorcycles |
| Recreational Camper Dealer | Sell recreational campers |
| Supplemental Lot | A franchised New Motor Vehicle Dealer's separate used-inventory lot |
| Restricted Dealer/Mobility DealerThe statute's term is automotive mobility dealer | The automotive mobility dealer license (KRS 190.010(3)); requires $1,000,000 minimum liability coverage |
| Restricted/Automotive Recycling Dealer | Dismantle, salvage, and recycle vehicles; requires a second zoning certification and commercial general liability coverage |
Get your Dealer Bond (Surety Bond)
A Kentucky Dealer License requires no fixed-amount bond. The Commission may require a bond of up to $100,000 (KRS 190.030(10)), and it decides from the financial statement in your application. The bond guarantees your financial responsibility to the Commission.
If your unencumbered cash and vehicle inventory total between $50,000 and $100,000, you bond the difference up to $100,000. Above $100,000, the Commission requires a bond only with reasonable cause to doubt your financial responsibility or compliance. It can also accept an equivalent financial arrangement instead of a bond.
| License Type | You Pay | Bond Amount |
|---|---|---|
| New Motor Vehicle DealerKentucky - Motor Vehicle Dealer. Only when the Commission requires one; credit check required | 1% a year$100 minimum | Up to $100,000 |
Get your Garage Liability Insurance (Indemnifying Bond or Insurance Policy)
A Kentucky Dealer License requires an approved indemnifying bond or insurance policy on file with the Commission before the license is issued or renewed (KRS 190.033). The limits are $250,000 per person, $500,000 per accident, and $250,000 for property damage. In practice that is a garage liability insurance policy, and your insurance agent quotes the price.
- Restricted Dealer/Mobility Dealer: $1,000,000 minimum
- Restricted/Automotive Recycling Dealer: the same limits, as commercial general liability
Your insurance company, not your agent, sends the certificate of insurance directly to the Commission. The policy can come from an insurer authorized in Kentucky or a nonadmitted insurer under Subtitle 10 of KRS Chapter 304. A Dealer holding a Department of Insurance certificate of self-insurance is exempt.
If the bond or policy is cancelled, your right to do business stops at once, and the Commission gets 15 days' notice. Reinstate it within 30 days and the license revives. After 30 days the license is void.
Set up your Dealer Office (Established Place of Business)
A Kentucky Dealer License requires an established place of business: “a permanent, enclosed commercial building located within this state, easily accessible and open to the public at all reasonable times” (KRS 190.010(10)). A home office isn't allowed. The regulation says the business office “is not part of a residence” (605 KAR 1:035).
The table below is the regulation's own list, and it applies to every license type on the application.
| What Kentucky Requires | |
|---|---|
| Office | Underpinned on a permanent foundation (a separate walled enclosure isn't required), at least 100 square feet of floor space, on or next to the display lot, with its own street address used only as the business office |
| Equipment | Electricity, a desk and chairs, space to store paper or electronic records, and a working business telephone used exclusively for vehicle sales |
| Lot | A hard surface such as gravel, asphalt, or concrete, at least 2,000 square feet, a distinctively defined area, used only for displaying vehicles and customer parking |
| Sign | Lettering at least 9 inches high, clearly visible from the nearest roadway, showing the business name exactly as on the application, installed by the time you apply. Not required for a Wholesale Motor Vehicle Dealer |
| Zoning | A Zoning Certification, page 8 of the application, signed by the Chief Zoning Official or, where the county has no zoning office, the County Judge Executive. A Restricted/Automotive Recycling Dealer adds a second certification on page 9 |
| Shared premises | Licensees can share a location if each has enough separate space, but two licenses for the same activity can't share facilities to meet the minimums. A salvage yard or repair garage on the premises stays physically separate from the office and display area |
Pass the Background Check (Administrative Office of the Courts)
Every owner, partner, corporate officer, and LLC manager on a Kentucky Dealer License application signs a waiver for a criminal background check. The Commission runs it by name through the Administrative Office of the Courts; Kentucky takes no fingerprints. It costs $25 for each owner, partner, or corporate officer listed on the application, paid with the application.
The waiver sits on the application's notarized Dataform. It also asks whether you have ever been charged or convicted of any criminal offense, misdemeanor or felony, or are under a court order. A yes needs the charge, disposition, court, and date. A salesperson authorizes their own employment and criminal records check when you apply for their license.
If you have a record
- Denial is discretionary, not automatic. Kentucky names no disqualifying crime. The Commission “may” deny for financial or moral unfitness (KRS 190.040). KRS 335B.020 bars a denial for a conviction unless the crime directly relates to the dealer business.
- No waiting period. No statute sets a number of years. If the Commission denies you for a conviction, its written findings must state the earliest date you can reapply.
- Felonies and misdemeanors are treated the same. A pending charge is disclosed, but only a conviction counts. A completed pretrial diversion is not a conviction and doesn't have to be listed (KRS 533.258).
- Expungement clears it. An expunged record doesn't show on the state check, and you don't have to disclose it (KRS 431.073). A felony expungement can be filed 5 years after your sentence, probation, or parole ends, whichever is later.
- You can appeal, and the burden is on the Commission. Ask for a hearing in writing within 10 working days of the denial notice. The Commission must prove the conviction directly relates to the license (KRS 335B.030).
- Ask first. KRS 335B.032 requires the Commission to offer a binding determination on your record before you apply, with its procedure in place by January 1, 2027.
Photograph your Dealer Location (Premises Photographs and Drawing)
A Kentucky Dealer License application includes at least 6 different photographs of the premises and a detailed drawing of the premises (605 KAR 1:030 §3). Kentucky's dealer regulations schedule no inspector visit; the Commission reviews your location from what you file.
The drawing shows the premises in relation to the nearest roadway. It marks the location and size of the office and display area, and where the dealership sign stands.
Submit your Dealer License Application (TC 98-1)
You apply to the Kentucky Motor Vehicle Commission on paper. Print the TC 98-1 application from mvc.ky.gov, or pay $7 to have the packet mailed to you. Mail the completed application to the Commission with the $175 application fee. The $200 license fee per type is due after approval; every fee is under costs.
Get a Kentucky sales tax permit number from the Department of Revenue first; the application asks for it. Each owner, partner, and corporate officer gives an SSN and a driver's license number from any state on the Dataform. Each also attaches a photograph less than 1 year old, at least 3 by 5 inches. The form has no EIN field.
Get your Dealer License Plates
Kentucky dealer license plates come from your county clerk, not the Motor Vehicle Commission (KRS 186.070). The $25 annual registration fee covers the certificate of registration and your first plate, and each additional plate is $14.50. Every dealer plate expires December 31.
Dealer tags let you drive your inventory, and the law lists who may. A licensed Dealer can, and so can a bona fide salesperson or employee who devotes a substantial part of their time to the business.
A customer can drive on them for a single demonstration trip, and a vehicle can be driven in transit to your place of retail business. An employee who isn't a licensed salesperson can't use a plate for personal purposes or to demonstrate a vehicle.
The clerk issues plates by your prior year's sales (601 KAR 9:220):
- 10 or fewer sold: 1 plate
- 11 to 25: 2 plates
- 26 to 50: 3 plates
- 51 to 75: 4 plates
- 76 to 100: 5 plates
- Over 100: more on request, or a hardship petition through the Commission for good cause
Dealer License Cost
A Kentucky Dealer License costs $175 to apply, plus $200 for each license type, due after approval and before the license is issued. Every other fee on this page is in the table.
| Fee | Amount |
|---|---|
| Application fee | $175 with the application |
| Dealer license feePer license type | $200 after approval$200 renewal, every calendar year |
| Criminal background check | $25 per owner, partner, or corporate officer |
| Motor Vehicle Salesperson license | $40 per person, paid by the Dealer$40 renewal |
| Dealer BondOnly if the Commission requires one | 1% of the bond amount a year, $100 minimum, credit check required |
| Garage liability insurance | $250,000 / $500,000 / $250,000 limits, priced by your agent |
| Dealer platesFrom the county clerk | $25 a year, registration and first plate$14.50 each additional plate |
| Paper application packet by mail | $7; free to print from mvc.ky.gov |
| Adding a partnerUp to 50% ownership, partial application | $175 processing$25 background check$40 salesperson license |
Dealer License Renewal
A Kentucky Dealer License expires December 31 of the year it is granted, whatever month it was issued. Renewal is $200 per license type, every calendar year (605 KAR 1:215). You renew online through your mvc.ky.gov dealer account, and each salesperson license renews with it for $40.
The renewal asks for your business licensing date and a scanned insurance certificate. If you have been licensed over 18 months, it also asks how many vehicles you sold in the prior year.
Common Questions
Can you get a Kentucky Dealer License with a felony?
Yes. A felony isn't an automatic bar to a Kentucky Dealer License. Kentucky names no disqualifying crime, and KRS 335B.020 bars a denial unless the conviction directly relates to the dealer business. There is no waiting period, and an expunged record doesn't have to be disclosed. If the Commission denies you, it must prove the connection at a hearing.
Can you get a Dealer License in Kentucky without a lot?
No. Every Dealer License type on Kentucky's application requires a permanent, enclosed commercial building (KRS 190.010). The office is at least 100 square feet and the lot at least 2,000 square feet. Details under Office.
How many cars can you sell in Kentucky without a Dealer License?
Kentucky sets no number. A Dealer License is required for anyone “engaged in the business” of selling motor vehicles or holding them for resale (KRS 190.010(21)). That covers sales for someone else, and sales incidental to another business. The only exemptions are court-appointed officials, banks disposing of repossessed vehicles, and public officers on duty.
Does Kentucky require a dealer class or exam?
No. Kentucky requires no pre-license class and no exam for a Dealer License or a salesperson license, initial or renewal. The licensing gate is paperwork: the application, a financial statement, premises photographs and drawing, the background check waiver, and the insurance certificate.
Does Kentucky inspect your dealership?
Kentucky's dealer statute and regulations schedule no site inspection, before or after you apply. Instead, you file at least 6 photographs and a detailed drawing of the premises with the application (605 KAR 1:030 §3), and the Commission reviews them. Details under Location.
Do I need a business bank account?
No. No Kentucky statute, Commission regulation, or agency document requires a business bank account for a Dealer License. The application's financial statement asks you to list the bank accounts, loans, and mortgages you already have. That is the unencumbered cash and inventory test, not an instruction to open an account.
How long does a Kentucky Dealer License take?
The Commission must grant or refuse a complete application within 30 days (KRS 190.030(6)). The statute sets no consequence if the Commission misses the deadline. Once granted, the license runs to December 31 of that calendar year, whatever month it was issued.
Does Kentucky have a wholesale dealer license?
Yes. The Wholesale Motor Vehicle Dealer is one of the 10 license types on the application, and it sells to licensed Dealers only. It is the one type that needs no exterior sign, but it still requires the permanent commercial building, office, and lot (605 KAR 1:035). It gets you into the dealer-only auctions.
Support
The Kentucky Motor Vehicle Commission issues every license on this page and receives the mailed application. Dealer plates are a county clerk transaction under Transportation Cabinet rules, and the sales tax permit comes from the Department of Revenue.
| Contact | Detail |
|---|---|
| Department | Kentucky Motor Vehicle Commission |
| Phone | (502) 573-1000 licensing and new applications(502) 330-6036 hearings and consumer complaints |
| Fax | (502) 227-8082 |
| Address | 200 Mero Street, 3rd Floor WestFrankfort, KY 40601 |
Additional sources (10)
The forms and the portal for each step are linked in the steps. These are the law, the rules, and the agency pages the page was checked against.
- 605 KAR 1:051, dealer and salesman — the salesperson license: the online application through the dealer's Ky.gov account, and the salesperson's own background authorization
- 605 KAR 1:215, licensing fees — the $200 dealer license fee and $40 salesperson fee, the renewal fee equal to the initial fee, and the good-standing rule
- 601 KAR 9:220, dealer plates — the plate count by prior-year sales and the limits on employee use
- KRS 335B.030, hearing and burden of proof — written findings, the 10-working-day hearing request, and the earliest reapplication date
- KRS 335B.032, pre-application determination — the binding determination before you apply, with procedures due January 1, 2027
- KRS 431.073, felony expungement — the 5-year filing clock and the no-disclosure rule
- KRS 533.258, pretrial diversion — a completed diversion is not a conviction and need not be listed on a license application
- 605 KAR 1:211, nonprofit motor vehicle dealer — the 501(c)(3) license that KRS 190.035(2) exempts from the place of business rule
- Kentucky Tax Registration Application (Form 10A100, PDF) — the sales tax permit the dealer application asks for, and its SSN and FEIN fields
- Motor Vehicle Commission FAQ — the Commission's own answers on adding a partner, converting a sole proprietorship, and relocating
