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The complete step-by-step process from the South Carolina Department of Motor Vehicles. Building requirements, pre-licensing course, $50,000 surety bond, application, and the SCDMV inspection.
Pulled straight from the official sources. Bookmark them if you want the originals: SCDMV Form DLA-1 (PDF) · SCDMV Dealer Site
Your office must have at least 96 square feet of floor space in a permanent enclosed structure. It cannot be a residence, tent, temporary stand, or other temporary quarters. For retail dealers, the public must be able to access the building during reasonable business hours.
You must display a permanent sign with lettering at least six inches tall, clearly identifying your business and readable from the nearest street.
You must provide a reasonable area or lot to properly display motor vehicles for sale. Records, files, and books must be housed at the same location shown on your application.
Sharing a building with another business? Get a courtesy pre-inspection from the SCDMV before signing a lease. Call (803) 896-2611 or email [email protected].
South Carolina requires every non-franchise motor vehicle dealer to complete a pre-licensing course before submitting the dealer license application.
You must show proof that you have completed an approved pre-licensing course. The original certificate of completion must be mailed in with your DLA-1 application. Copies are not accepted by the SCDMV.
We recommend taking the SC dealer class early. The class walks you through every other step on this page plus a long list of laws and regulations on selling cars in South Carolina. Doing it first makes everything else easier.
South Carolina law requires a surety bond from every dealer applicant. The bond protects buyers from loss or damage caused by fraud or misrepresentation in a sale.
Furnish a corporate surety bond on SCDMV Form DLA-1B with Power of Attorney. Secured by a corporate surety company authorized to do business in SC.
The name and address on your bond must match the application exactly. The bond must be signed by the owner, partner, or corporate officer. Copies are not accepted.
Before the SCDMV will process your application, your business needs to be properly registered with the state and have its tax accounts in place.
If you're operating as an LLC, LLP, Inc., or other business entity, file your Articles of Authorization with the SC Secretary of State. Include a copy with your DLA-1 application.
Retail dealers must apply for an SCDOR Retail License (Form SCDOR-111). This gives you the sales tax number you need on every retail sale. Wholesalers get a tax exemption certificate instead.
Pick a name first? Try our Free Dealership Naming Tool. It generates ideas from real Carolina naming patterns and checks domain availability.
You need a city or county compliance document for your dealership's location. This is usually a business license, zoning permit, or business registration.
If your locality doesn't issue one, get a letter from the city or county stating no compliance document is required for your DBA and location.
Contact your local county auditor's office and city business licensing department. Requirements vary by jurisdiction in South Carolina.
If you're unsure, ask the SCDMV Business License Unit at (803) 896-2611 or [email protected] for guidance.
Every owner with 10%+ ownership must submit a National Criminal Report background check along with the Affidavit of Eligibility (Form AD-808A).
Once these five steps are done, mail your complete DLA-1 application packet to the SCDMV Business License Unit in Blythewood. Originals only. Once received, an SCDMV agent will contact you to schedule your dealership inspection.
A dealer license is required if you sell or attempt to sell more than five motor vehicles in a calendar year. Selling without a license is a misdemeanor: fine up to $1,000 and/or imprisonment for up to two years.
Retail dealer: Can sell to the general public, other dealers, or wholesalers. Requires a display lot, public-accessible building, sign with 6" letters, and SCDOR Retail License for sales tax.
Wholesale dealer: Can only sell to other licensed dealers or wholesalers. No public access required, no display lot, no sign requirement. Tax exemption certificate from SCDOR instead of a retail license.
The SCDMV does not charge a fee to submit the DLA-1 application. The costs come from the supporting requirements: the $50,000 surety bond (you pay the bonding company), the pre-licensing course, the National Criminal Report ($43.01 per owner with 10%+ ownership), business filings with the SC Secretary of State, and any local city or county business licenses.
Most dealers complete the process in 30 to 60 days. Bottlenecks are usually scheduling the SCDMV inspection, getting the surety bond issued, and waiting on city/county compliance documents. Starting the pre-licensing class early shortens everything else.
Standard mail: SCDMV, Attn: Business License Unit, PO Box 1498, Blythewood, SC 29016-0023.
Overnight mail: SCDMV, Attn: Business License Unit, 10311 Wilson Boulevard, Building C, Blythewood, SC 29016-0023.
The SCDMV issues several license types. The most common is the basic Motor Vehicle Dealer license. Required if you sell or attempt to sell more than five vehicles per calendar year.
The most common license. Sell retail or wholesale to the general public, other dealers, or wholesalers. No minimum sales volume required to maintain the license.
Wholesale-only license. Can only sell to other licensed dealers or wholesalers, never to the public.
For running an auction. You don't own the vehicles auctioned, you provide the location. You may also choose to buy and sell auction vehicles yourself.
Same structure as the Motor Vehicle Dealer / Wholesaler licenses, but for motorcycles. Required at the same five-per-year threshold.
For motorhomes, travel trailers, fifth-wheels, and folding camping trailers. The sale of utility and other trailers does not require a dealer license.
For licensed SC RV dealers to sell at fairs, recreational shows, or vacation shows. Dealers cannot purchase more than six temporary licenses per year. Apply with Form 417-C.
The FTC Used Car Rule requires a completed Buyer's Guide in the window of every used vehicle for sale. Signed copies stay with your records and go to the buyer at closing.
Keep complete records of every transaction for five years. Buyer/seller name and address, transaction date, VIN, year/make/model, and Federal Odometer Disclosure. The SCDMV can inspect anytime during business hours.
Complete SCDMV Form 400 (Title Application) for every retail sale. Include your dealer license number and sales tax number on the form.
Always verify against the most current information. Here's where to look.
Our recommended SC pre-licensing course. Taught by Jessica Gise. In-person and online sessions.
See SC class schedule →The official SCDMV page for all dealer license types, with current forms and contact info.
Visit SCDMV →The official dealer license application. Mail in with your complete packet.
Download PDF →Order the SCDMV-required criminal background check. Required for every owner with 10%+ ownership.
Order report →File Articles of Authorization for your LLC, Inc., or LLP.
File articles →Bond, insurance, training, and compliance partners that work with SC dealers.
See our list →