Texas dealer license requirements come from two main places: the Texas Transportation Code (Chapter 503) and TxDMV's rules in the Texas Administrative Code (Title 43, Chapter 215). Here's what those requirements look like in practice.
1. An established and permanent place of business
- You own the property or have a written lease for at least the term of the license.
- A permanent furnished office equipped for selling the vehicles you're licensed for.
- A conspicuous sign showing your business name in letters at least six inches high.
- Retail only: space to display at least five vehicles of the type in your application.
- You or a bona fide employee available at the location during reasonable business hours.
2. Complete business information
Your legal business name, any assumed names, physical and mailing addresses, phone, email, website if you have one, and your Secretary of State file number when applicable.
3. Owner identity and fingerprints
TxDMV requires proof of identity for owners and fingerprints for individuals listed on the application. Criminal history is reviewed as part of the process.
4. Pre-licensing education
Under Transportation Code §503.029 and TxDMV rules, new independent motor vehicle dealer applicants must complete a TxDMV-approved online course of at least six hours. TxDMV states the course cost may not exceed $150 per person and the requirement is one-time.
5. Motor vehicle surety bond
Independent GDN applicants generally must provide a surety bond. The bond has to match your business information exactly. Errors on bonds are a common source of deficiencies.
6. Application questions and fees
Expect questions about military status, licensing and disciplinary history, insolvency, liens or judgments, and the business location. Fees are set by TxDMV and paid from an account belonging to the applicant, their attorney or CPA.
Sources
- Texas Transportation Code, Chapter 503
- 43 Texas Administrative Code §215.133
- TxDMV — Dealer Education Requirements for Licensing
- TxDMV — Retail GDN Checklist (LG100)
- TxDMV — Motor Vehicle Dealer Manual
This guide is general business information, not legal advice. Texas requirements change. Always confirm current rules with TxDMV before you apply. Dealer License Pros is not affiliated with TxDMV.