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This video goes in depth and covers the process of obtaining an Idaho Dealer License
1. Location Zoned for Dealership

The first step in obtaining an Idaho Dealer License is to find a location that is zoned to operate a dealership. The State of Idaho requires all dealer locations to meet local zoning. You can find out the zoning for the location you want to use for your Idaho dealer license by contacting your City Hall. If you are in a rural area, you can contact your County Court House. Just ask for Planning and Zoning, then let them know the address you want to have your license located at. They will state that you can have a dealer license at that location, or you may not have a dealer license at that location. Your location must be zoned for the operation of a dealership. This is Idaho law.

2. Display Area

The State of Idaho requires all retail dealers to have a display area that has room for 5 or more vehicles. Retail dealerships need to ensure their display area is spacious enough for at least five of the types of vehicles/vessels they are licensed to sell. The "improved" space should be next door and easily distinguished from all other nearby businesses, with physical dividers, like chains or ropes setting it apart if two stores happen to share a building. While this does not apply in wholesale-only cases, any retail dealer must make sure that these guidelines are met within their own business setup. This is an Idaho dealer licensing requirement.

3. Dealer Surety Bond

Idaho requires all dealers to be bonded. This means all dealers in Idaho must obtain an Idaho Dealer Surety Bond. If you are obtaining a retail dealer license, you will need a $20,000 dealer surety bond. If you are obtaining a wholesale dealer license, you will need a $40,000 dealer surety bond. If you are only selling motorcycles, atv's, and utv's, you will only need to obtain a $10,000 dealer surety bond. The "Obligee" on your dealer bond must be the Idaho Transportation Department. We can send your bond quote to over 30 bond carriers dependent upon your credit score to obtain the best price for your dealer surety bond.

GET A FREE IDAHO DEALER SURETY BOND QUOTE FROM DELUS JOHNSON

4. Idaho Seller Permit and Federal Employer ID Number

You will need to obtain an Idaho Seller Permit and a Employer ID number from the IRS. You need a seller permit to legally charge sales tax on your motor vehicles and you will need an Employer ID Number, or EIN, to show the State of Idaho that you are prepared to pay taxes on you expected increase in your income. To apply for an Idaho Seller Permit, you must first register as a business on the Idaho website. You an register by clicking here to go to the Seller Permit Registration page. You can easily apply for your Federal Employer Tax ID Number at the IRS website. Here is a direct link to the Employer ID Number application page.

5. Liability Insurance

All vehicles driven in the State of Idaho must be insured, including the vehicles that you hold for sale. Minimum coverage amount is $25,000 bodily injury to one person, $50,000 bodily injury to two persons, and $15,000 property damage or destruction. This insurance policy ensures the vehicles that your customers are test driving or the vehicles that you are transporting are insured.

6. Dealer Educational Course

Before you apply for your Idaho dealer license the State will require that you take an 8 hour dealer pre-license training course. Idaho, like most other states, now requires anyone obtaining an Idaho dealers license to complete an 8 hour dealer training course. Contact Idaho State Independent Automobile Dealers Association at 208-463-7709 or Independent Training Services at 208-557-4066 to complete your Idaho dealer license training.

7. Complete an Idaho Personal and Sales Person History

The final step in obtaining your Idaho dealer license is to complete and Idaho Personal and Sales Person History form IDT 3171.. You must disclose any criminal information on this form. Be sure to complete the form in it's entirety and truthfully. When you hire sales persons in the future, you will complete this form each time a salesperson is hired.

Those are the 7 Steps to an Idaho Dealer License
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