Fulfill pre-application qualifications. Register or incorporate a business in the state where the dealership will be located. You can register a business at the local city clerk's office; you must go through the Secretary of State's office to incorporate. Most states will not approve an application that doesn't contain a registered business name. You also must have a proposed, purchased or leased site for the car lot.
Complete application requirements. You can pick up an application at the department of motor vehicles or transportation in the state where you plan to open the dealership. Some states, like Massachusetts, require the local licensing authority to handle dealer applications. The state may require a different application if you are opening a new car dealership versus a used car dealership. You must supply the names, birth date, Social Security numbers and addresses of all partners, and the name and address of the proposed lot. Some states, like Arizona, will require a notarized signature.
Fulfill other qualifications. Arizona requires a criminal background check. Hawaii requires a prepared financial statement, photos of the site and proof of a line of credit of $50,000 to $500,000 from a financial institution. Massachusetts requires that the site pass inspection by the local building authority. Many states require that you provide a drawing of the lot, including any buildings, with the application. Louisiana requires that you submit a certificate of good standing from the secretary of state with the application. Many states, like Massachusetts and Arizona, require you to get a surety bond and include it with the application.
Pay all applicable fees. Fees vary per state and per type of dealer's license. States also may require fees for building or lot inspections, and for fulfilling other requirements besides the actual application.