To apply, you must:
10 South Carolina Dealer License Requirements
South Carolina Dealer Licenses are issued by the South Carolina Department of Motor Vehicles (SCDMV), through its Business License Unit. This page covers South Carolina's 6 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. South Carolina's Dealer application accepts a sole proprietorship, partnership, LLC, LLP, or corporation.
An LLC keeps your business separate from your personal life and adds trust to the name. An LLC, LLP, or corporation files its articles with the South Carolina Secretary of State before you apply; SCDMV's checklist calls them “Articles of Authorization.”
With an LLC or corporation, you can add an owner and keep your license. You report the change to SCDMV within 30 days on its form. The law treats it as a change to your license information, not a new application. The application lists every owner with 10% or more of the business.
Choose your Dealer License Type
All 6 South Carolina Dealer License types are on one application, Form DLA-1, and you check one category. The Motor Vehicle Dealer License covers retail and wholesale; the Motor Vehicle Wholesaler License skips the sign, the display lot, and the pre-licensing course.
| License Type | What It Lets You Do |
|---|---|
| Motor Vehicle Dealer“Dealer (Retail/Wholesale)” on the DLA-1 | Buy and sell cars and trucks to the public and to other Dealers, retail and wholesale. Motorcycles and RVs need their own license |
| Motor Vehicle Wholesaler“Wholesale (Only)” on the DLA-1 | Sell only to licensed Dealers and wholesalers, never to the public. No sign, no display lot, and no pre-licensing course |
| Motor Vehicle Wholesale Auction | Run a wholesale auction where licensed Dealers trade at your place of business. The auction doesn't own the vehicles it sells, and its license is valid 12 months |
| Motorcycle Dealer | Sell motorcycles to the public and to other Dealers, under its own chapter of state law. No pre-licensing course |
| Motorcycle Wholesaler | Sell motorcycles only to licensed motorcycle Dealers and wholesalers, not to the public |
| Recreational Vehicle Dealer | Sell RVs, and only RVs; no other vehicle type can be sold on this license. A Temporary Recreational Vehicle Dealer's License, $20, adds a fair or show for 10 days, up to 6 a year |
Get your Dealer Bond (Surety Bond)
A South Carolina Motor Vehicle Dealer License requires a $50,000 bond, filed with SCDMV on its own form, DLA-1B (S.C. Code §56-15-320). The bond protects customers if you break South Carolina's dealer laws. A $50,000 Dealer Bond costs only $500 a year, after a credit check.
The bond must be in force before the license issues, and it runs on its own clock. A new bond or a continuation certificate goes to SCDMV every 12 months during the license period. The license expires immediately if the bond expires, ends, or drops below the required amount.
Dealer 101 Insurance Services
Licensed in South Carolina · NPN 22346185
| License Type | You Pay | Bond Amount |
|---|---|---|
| Motor Vehicle DealerSouth Carolina - All Retail, Wholesale and Recreational Motor Vehicle Dealers ($50,000) | $500/yearabout $42 a month | $50,000 |
| Motor Vehicle WholesalerSouth Carolina - All Retail, Wholesale and Recreational Motor Vehicle Dealers ($50,000) | $500/yearabout $42 a month | $50,000 |
| Recreational Vehicle DealerSouth Carolina - All Retail, Wholesale and Recreational Motor Vehicle Dealers ($50,000) | $500/yearabout $42 a month | $50,000 |
| Motorcycle DealerSouth Carolina - All Motorcycle and Motorcycle Wholesale Dealers ($25,000) | $250/yearabout $21 a month | $25,000 |
| Motorcycle WholesalerSouth Carolina - All Motorcycle and Motorcycle Wholesale Dealers ($25,000) | $250/yearabout $21 a month | $25,000 |
| Motor Vehicle Wholesale AuctionSouth Carolina - All Wholesale Auction Dealers ($15,000) | $150/yearabout $13 a month | $15,000 |
Get Garage Liability Insurance — only for dealer plates
A South Carolina Dealer License itself requires no insurance. Garage liability insurance is required only if you want dealer plates, and you must have it before you apply for them. SCDMV's manual says: “If you decide to operate your business without dealer plates, obtaining garage liability insurance is optional.”
If the policy is cancelled later, you surrender the plates; the license itself is unaffected.
Set up your Dealer Office
A South Carolina Dealer License requires a bona fide established place of business (S.C. Code §56-15-330). That means a permanent, enclosed building with at least 96 square feet of floor space. The law says it “does not mean a residence, tent, temporary stand, or other temporary quarters.” The table below compares the Dealer and Wholesaler standards.
For a retail Dealer, other than a motorcycle Dealer, the principal business at the location must be selling or exchanging vehicles. You can also use property adjacent to or within sight of it, but every sale and every record stays at the established place.
| Dealer | Wholesaler | |
|---|---|---|
| Building | A permanent, enclosed building with at least 96 square feet of floor space; a permanently installed mobile home qualifies | The same building, at least 96 square feet |
| Use | Occupied by you, easily accessible to the public, with your books and records kept there | The same |
| Display lot | “A reasonable area or lot to properly display motor vehicles,” which SCDMV's manual defines as 2,000 square feet minimum, excluding alleys and driveways | Not required |
| Sign | Permanent, with letters at least 6 inches high, “clearly readable from the nearest major avenue of traffic” | Not required |
| Zoning | A city or county compliance document (business license, zoning permit, or business registration), or a letter saying none is required for your trade name and location | The same |
| You submit | A hand-drawn or computer-generated diagram of the building and lot, the display area, and the office space | The same diagram |
Complete the 8-Hour Pre-Licensing Course — first-time retail Dealers only
A first-time South Carolina non-franchise retail Dealer must complete at least 8 hours of pre-licensing education before the license is issued (S.C. Code §56-15-410). There is no Dealer exam. The course isn't required for Wholesale, Wholesale Auction, Motorcycle, or Recreational Vehicle Dealers, or for franchise Dealers.
A non-franchise Dealer owned by a franchised Dealer, or whose main business is salvage or rental, is exempt too.
- SCDMV names 3 course providers: Better Dealer Training (704-473-5258), Carolina Dealer Training (704-918-4138), and the Carolina Independent Automobile Dealer Association, CIADA (704-455-2117)
- The course is 8 hours
- The provider sets the price; South Carolina doesn't
- Mail the original certificate with your application; copies are not accepted
Pass the Background Check (National Criminal Report)
Every owner with 10% or more of a South Carolina dealership must submit a National Criminal Report with the application, and again at each renewal. It's a name-based check; South Carolina takes no fingerprints.
You order it from the private vendor SCDMV links to, Premier Biotech. The minimum cost is $43.01, and the report comes by email; allow at least 3 to 5 business days. At renewal it can't be more than 90 days old.
If you have a record
- Denial is discretionary, not automatic. SCDMV “may” deny, suspend, or revoke a license for a listed crime; it isn't required to
- Six crime categories count (§56-15-350). They are violent crimes, drug crimes other than simple marijuana possession, tax evasion, and weapons crimes. Dishonesty crimes such as larceny or false statements count too, and so does criminal sexual conduct
- The 10-year clock runs from the conviction or plea date. A no-contest plea counts and a pending charge doesn't. The law sorts by crime category, not felony or misdemeanor
- Pardoned and expunged crimes are excluded. The law says its grounds “do not apply to any pardoned or expunged crime within the ten-year time period”
- The form asks about everyone. DLA-1 Question 12 covers the applicant, any owner, any sales personnel, or any agent, in any state, in the last 10 years
- You can request a hearing. SCDMV gives 20 days' written notice before a denial, and you have 10 days from the notice to request one with the Office of Motor Vehicle Hearings
Submit your Dealer License Application (Form DLA-1)
You apply on Form DLA-1, a fillable PDF you mail or email to SCDMV's Business License Unit; SCDMV Online handles renewals only. The fee is $150 and covers 3 years; the Wholesale Auction license is $50 a year. Every fee is itemized under costs.
Each owner with 10% or more also signs an Affidavit of Eligibility, Form AD-808A, with a photocopy of a government ID. An out-of-state license or ID card is accepted, and a South Carolina license needs no photocopy. The form asks for the sales tax number SCDOR assigned your business, and retail applicants also need SCDOR's Retail License (Form SCDOR-111).
You request dealer plates on the same form. The DLA-1 also asks whether an immediate family member is or was a licensed South Carolina Dealer. It asks who floor-plans or financially backs the business. A manufacturer, distributor, or franchisor of motor vehicles is ineligible.
Pass the Site Inspection (Compliance Auditor Visit)
A South Carolina Dealer License location is inspected after you apply. SCDMV's Inspection page says: “Once the SCDMV processes your application for a dealer license, an SCDMV agent will contact you to schedule an inspection.” A Compliance Auditor decides whether your location qualifies, and the license and plates follow. No South Carolina law sets a deadline for the decision.
Get your Dealer License Plates
South Carolina dealer license plates are $20 each and are issued on request, based on your sales (S.C. Code §56-3-2320). Dealer tags let you drive your inventory. You get 2 plates for the first 15 vehicles sold in the preceding year and 1 more for each 15 after that. A first-year Dealer gets an estimate, adjusted to actual sales.
Plates go only on vehicles you own, are assigned, or loan for a test drive. You, your corporate officers, and your employees can drive on them. A prospective buyer can too, for up to 7 days with a dated demonstration certificate.
A service customer under a manufacturer program can drive on one for up to 30 days. There is no general personal-use allowance, and no plates on wreckers, service vehicles, or vehicles you rent to the public.
Dealer License Cost
A South Carolina Motor Vehicle Dealer License costs $150, and that one fee covers 3 years. Every other fee on this page is in the table.
| Fee | Amount |
|---|---|
| Dealer License | $150 for 3 years: Motor Vehicle Dealer, Wholesaler, Recreational Vehicle, Motorcycle, or Motorcycle Wholesaler$50 a year, Wholesale Auction |
| License renewal | Same as the license fee: $150 every 3 years, or $50 a year for a Wholesale Auction |
| Temporary Recreational Vehicle Dealer's License | $20 each, 10 days, up to 6 a year |
| Dealer Bond | $500 a year, $50,000 bond, credit check required$250 a year, $25,000 motorcycle bond$150 a year, $15,000 wholesale auction bond |
| Garage liability insurance | Priced by your insurer; required only if you want dealer plates |
| Pre-licensing courseFirst-time retail Dealers only | Set by the provider, not the state |
| National Criminal Report | $43.01 minimum, per owner with 10% or more, at application and each renewal |
| Dealer plates | $20 per plate$1 per plate registration update on a name or address change |
| Retail License (Form SCDOR-111)Retail applicants, from the Department of Revenue | Set by the Department of Revenue |
| Closing-fee registrationOnly if you charge closing fees on sales contracts | $10 a year to the Department of Consumer Affairs, due by August 31 |
Dealer License Renewal
A South Carolina Dealer License is valid for 36 months from the month of issue, and renewal is $150 (S.C. Code §56-15-310). The Wholesale Auction license is valid 12 months and renews at $50. Renewals are online only, through SCDMV Online.
To renew, you submit:
- Form DLA-1
- A National Criminal Report no more than 90 days old, for each owner with 10% or more
- Proof of garage liability insurance, if you want plates
- Form DLA-1C, Certification of Vehicles Sold, if your sales don't support the plate count you request
A new bond and Power of Attorney aren't required to renew, but the bond's continuation certificate still goes to SCDMV every 12 months.
Common Questions
Can you get a South Carolina Dealer License with a felony?
Yes. A felony isn't an automatic bar to a South Carolina Dealer License. SCDMV may deny for 6 listed crime categories when the conviction or plea date is within 10 years (S.C. Code §56-15-350). Pardoned and expunged crimes don't count, and neither does a pending charge. The law sorts by category, not felony or misdemeanor.
Can you get a Dealer License in South Carolina without a lot?
Yes, with the Motor Vehicle Wholesaler License. It requires no display lot and no sign, only the 96-square-foot enclosed building every South Carolina Dealer License requires. A home doesn't qualify: the law excludes “a residence, tent, temporary stand, or other temporary quarters.” Details under Office.
How many cars can you sell in South Carolina without a Dealer License?
In South Carolina, a Dealer License is required once you sell or attempt to sell more than 5 motor vehicles in a calendar year (S.C. Code §56-15-10). Up to 5 is allowed without one, as long as they were vehicles you acquired for your own use. SCDMV's own dealer page says the same.
How do you get a wholesale license in South Carolina?
The Motor Vehicle Wholesaler License is on the same DLA-1 application, with the same $150 fee for 3 years and the same $50,000 bond. It sells only to licensed Dealers and wholesalers, and skips the sign, the display lot, and the pre-licensing course. You still need the 96-square-foot building, the National Criminal Report, and the inspection.
How much is a South Carolina auto dealer bond?
$50,000 for a Motor Vehicle Dealer, Wholesaler, or Recreational Vehicle Dealer, and it costs about $500 a year after a credit check. Motorcycle Dealers and Wholesalers file $25,000, and a Wholesale Auction files $15,000. Most licenses are valid 3 years, but a new bond or a continuation certificate goes to SCDMV every 12 months. Details under Dealer Bond.
Do salespeople need a license in South Carolina?
No. South Carolina issues no salesperson license for motor vehicles; the word doesn't appear in the dealer licensing chapter. Sales staff are listed on the DLA-1 by name only. The “Manufactured Home Salesperson” licenses you may see are for mobile home Dealers, issued by the Manufactured Housing Board at LLR, not SCDMV.
Do I need a business bank account?
No. No South Carolina statute, form, or manual requires a business bank account for a Dealer License, and the DLA-1 application has no bank account field. It does ask who floor-plans or financially backs the business.
How long does a South Carolina Dealer License take?
No South Carolina law sets a deadline for SCDMV to decide, and SCDMV publishes no time estimate either. The order is fixed: the Business License Unit processes your DLA-1, a Compliance Auditor schedules the inspection, then the license and plates follow. The National Criminal Report alone takes at least 3 to 5 business days.
Support
The SCDMV Business License Unit issues all 6 license types on this page. New applications go to it by mail or email; renewals go through SCDMV Online.
| Contact | Detail |
|---|---|
| Department | South Carolina Department of Motor Vehicles, Business License Unit |
| Phone | (803) 896-2611 Business License Unit(803) 896-8172 fax |
| [email protected][email protected], for online renewal help | |
| Address | SCDMV, Attn: Business License Unit, PO Box 1498, Blythewood, SC 29016-0023Overnight: 10311 Wilson Blvd., Building C, Blythewood, SC 29016-0023 |
Additional sources (5)
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.
- S.C. Code Title 56, Chapter 16, motorcycle dealers — the separate chapter for the Motorcycle Dealer and Motorcycle Wholesaler Licenses, with the same place-of-business rule
- S.C. Code Title 56, Chapter 14, recreational vehicle dealers — the Recreational Vehicle Dealer License and the Temporary Recreational Vehicle Dealer's License
- S.C. Code §16-1-60, violent crimes — the closed list of offenses the dealer law counts as a violent crime
- S.C. Code Title 40, Chapter 29, manufactured housing — where South Carolina's only salesperson licenses live, for manufactured homes under the Manufactured Housing Board
- Non-Franchise Dealers (SCDMV) — the pre-licensing course exemptions and the 3 approved course providers
