How to Get a Dealer License in Louisiana: Cost & Requirements

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Louisiana runs two separate motor vehicle commissions, and used car dealers answer to the smaller one. The Louisiana Used Motor Vehicle Commission licenses used dealers; the Louisiana Motor Vehicle Commission handles new franchise dealers. The licence is $400 and runs two years, the bond is $50,000, garage liability starts at $55,000, a representative must sit a four-hour seminar — and you cannot file the first application online.

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Every document has to carry the same business name

The commission is explicit: your business name must be identical on the application, the surety bond, the insurance certificate, the sign, and the phone listing. A mismatch anywhere generates a sendback letter. Getting the registered entity right first is what keeps the rest aligned. Bizee files your Louisiana LLC and most people finish in one sitting.

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Prefer DIY? You can file directly through GeauxBiz — the state fee is identical either way.

Your Licence Term Depends on Your District

This is the part that catches people, and almost nothing written about Louisiana dealer licensing mentions it. The licence runs two years — but which two years is decided by the district your dealership sits in, not by the date you applied.

The commission divides the state into five districts and staggers them, so roughly half the state renews in one cycle and half in the other:

Licence year period Districts
Jan 1, 2020 – Dec 31, 2021 4, 5
Jan 1, 2021 – Dec 31, 2022 1, 2, 3
Jan 1, 2022 – Dec 31, 2023 4, 5
Jan 1, 2023 – Dec 31, 2024 1, 2, 3

The pattern published by the commission runs districts 4 and 5 on the even-numbered start years and districts 1, 2 and 3 on the odd-numbered ones. Licences are valid from the date issued or January 1, whichever is later, and always expire December 31.

What this means in practice: if you apply midway through your district’s cycle, you pay the full $400 and get whatever remains of that period — not a fresh two years from your issue date. Confirm your district’s current period with the commission before you budget, because a licence issued late in a cycle is a short one.

What It Costs

Item Cost Notes
Used dealer licence $400 Two-year term; statute caps the fee at $200 per year
Additional location $200 Two-year term; adjacent locations are also $200
Salesperson licence $25 One year each
Criminal background check $35 Per applicant, only if there is a conviction to disclose
Late renewal penalty $100 Set by statute
Surety bond $50,000 Continuing bond, commission’s own form, surety seal required
Garage liability insurance $55,000 minimum ACORD certificate; must list all insured salespeople
Louisiana LLC $100 Filed through GeauxBiz

The other licence types the commission issues — auction, used parts and accessories, crusher, automotive dismantler and parts recycler, daily rental, rent-with-option-to-purchase, and catalytic converter — are each $400 for two years. If you hold several at the same location you may reuse one bond, one sign, one phone line and one zoning form.

The Insurance Is Not One Policy

Louisiana asks for different cover depending on what you actually do, and the minimums are unusually specific:

  • Garage liability — $55,000 minimum. On an ACORD certificate of liability insurance showing the insured’s name and physical address, the insurer and agency details, policy effective and expiration dates, and every insured salesperson listed by name.
  • If you rent vehicles — contingent liability at $100,000/$300,000/$50,000, placed where available through an insurer licensed and admitted in Louisiana.
  • If you rent vehicles — scheduled auto cover at $15,000/$30,000/$25,000.

The garage liability policy has to be in force before the licence issues, and the certificate goes in the packet rather than following later.

What the Lot Has to Have

  • A zoning verification form completed by your local zoning authority. If the location is zoned, the zoning code must be written on the form; you must comply with local zoning or the municipal requirements.
  • A permanently affixed sign reading the exact trade name, placed at the front of the business and clearly visible from the street or roadway — and a photograph of it goes in the packet.
  • A business telephone line.
  • A physical inspection. The commission inspects the premises before licences are issued.

The Four-Hour Seminar

Every application must be accompanied by a certificate showing the applicant completed an approved educational seminar, and the commission runs that seminar itself — the registration form is bound into the initial dealer packet rather than being something you buy from a third-party school.

The application asks directly whether a representative of the dealership has completed the four-hour seminar, and if not, for the date they are scheduled to attend. Under the statute, an applicant who is not already a dealer must show that the applicant or the manager has attended, or has registered to attend within sixty days after the licence is issued.

Answering that question falsely is not a paperwork problem. The application warns that a false answer is a criminal offence carrying a fine of up to $5,000, imprisonment of up to four years, or both.

How to Get Licensed, In Order

  1. Form the entity and get a phone line in the business name. Fix the exact trade name now — it has to match on every later document.
  2. Get the zoning verification form signed by your local zoning authority.
  3. Put up the sign with the exact trade name, permanently affixed and visible from the road, then photograph it.
  4. Bind the $50,000 bond on the commission’s form, with the bond number and surety seal on its face.
  5. Bind garage liability at $55,000 minimum and have the ACORD certificate issued, listing every salesperson.
  6. Register for the four-hour seminar using the form in the packet.
  7. Submit the paper packet with the $400 fee — cash, check, money order or cashier’s check payable to the Louisiana Used Motor Vehicle Commission. You cannot file the initial application online.
  8. Pass the physical inspection, then allow roughly 14 business days for processing.

If you change your mind: a withdrawal request submitted within 30 days of the commission receiving your application may be considered for a full refund. After 30 days, only part of your fees may come back.

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$400 for two years, and the premises get inspected

The bond, the insurance certificate, the sign, the phone listing and the zoning form all have to name the same registered dealership, and an inspector visits before the licence issues. Getting the entity on file first is what makes the rest line up. Bizee handles the Louisiana filing — you pick the package and pay the state fee.

Form your Louisiana LLC →

Package + Louisiana state fee ·

Frequently Asked Questions

Who issues the dealer license in Louisiana?

The Louisiana Used Motor Vehicle Commission (LUMVC) licenses used motor vehicle dealers. It is a separate agency from the Louisiana Motor Vehicle Commission, which handles new vehicle franchise dealers, and separate again from the Office of Motor Vehicles, which handles titles and registration. Used car dealers apply to the LUMVC in Baton Rouge.

How much does a Louisiana dealer license cost?

$400 for the used dealer license, and that fee buys a two-year term rather than one year. Each additional location is $200, and each salesperson license is $25 per year. The statute caps the dealer fee at $200 per year, which is why a two-year license comes to $400.

How much is the Louisiana dealer bond?

$50,000. It must be a continuing bond with a commercial surety authorized in Louisiana and approved by the commission, written on the commission’s own form or using its exact language, with the bond number and the surety’s seal on the face of the bond. The surety’s aggregate liability in any calendar year is capped at $50,000.

Do I need to take a course for a Louisiana dealer license?

Yes. A representative of the dealership must complete a four-hour educational seminar. The commission runs the seminar itself and the registration form is part of the initial dealer packet. If you have not completed it when you apply, you must give the date you are scheduled to attend, and the statute allows certain applicants to register within sixty days after the license is issued.

Can I apply for a Louisiana dealer license online?

No. The commission’s own instructions state you cannot apply for initial licenses online. The packet is completed on paper and submitted with payment by cash, check, money order or cashier’s check made out to the Louisiana Used Motor Vehicle Commission. Renewals are handled differently, but the first application is paper.

Sources

Source What it confirms
Louisiana Used Motor Vehicle Commission Licensing agency, contact, forms
Requirements to Become a Used Motor Vehicle Dealer (LUMVC packet) Fee schedule, district stagger, insurance minimums, sign, zoning, inspection, no online filing
La. R.S. 32:791 $50,000 bond, fee ceilings, four-hour seminar, garage liability duty, $100 late penalty
LUMVC Forms & Requirements Application forms, seminar registration, fee schedule
Robert Smith
About the Author

Robert Smith has run a licensed private investigation firm for 8 years from the Florida-Georgia state line - where he learned firsthand how wildly business licensing rules differ between states just miles apart. He personally researched requirements across all 50 states and D.C., reviewing hundreds of government sources over hundreds of hours to build guides he wished existed when he started. Not a lawyer or accountant - just a business owner who has done the research so you don't have to.