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

Last updated: August 18, 2026

Minnesota changed its rules this year. Since January 1, 2026, every owner, board member and executive officer on a dealer licence must be fingerprinted and background checked — on new applications and on renewals. The licence is $250 with a $50,000 bond, and you do not get a full licence up front: you get 90 days and an inspector.

The New Fingerprint Requirement

Effective January 1, 2026, all applicants listed on a Minnesota dealer licence — owners, board members and executive officers — must complete three things: fingerprinting, a background check, and a consent release permitting the attesting documents to go to the DVS Dealer Licensing Unit for review.

This is not a one-off for new entrants. If your licence lapses and you re-licence within 60 days, all owners and officers must resubmit the fingerprinting and background check forms. Any guide written before 2026 will not mention this step at all.

You Get 90 Days First, Not a Licence

Minnesota front-loads the inspection. Once your application is accepted, DVS issues a 90-day temporary dealer licence. During that window a DVS Dealer Inspector visits your place of business to check statutory compliance, and your licence may be approved, extended or denied at any time during it. The maximum extension is 180 days from the initial date of issuance.

• If approved: you get a dealer licence valid for 12 months from the date of issue.
• If denied: written notification, all dealer plates surrendered, dealer privileges invalid, and no refund on licence or plate fees.

And the penalty for a failed application is real: any applicant denied a dealer licence must wait one year to reapply. Failure to meet the commercial checklist — or any misstatement on it — is enough to trigger that. Used-licence applicants are encouraged to submit photos of the commercial building, the designated display lot and the exterior sign.

What It Costs

Item	Cost	Notes
Dealer licence (all types)	$250	New, used, lessor, wholesaler, broker, auctioneer, salvage pool, limited use
DSB licence	$10	Motorised bicycle, boat and snowmobile trailers
Surety bond	$50,000	Form PS2446; DSB is $5,000
Liability insurance	See below	Required on all vehicles held for sale or resale
Minnesota LLC	State fee	Filed with the Secretary of State

Minnesota’s insurance minimums are itemised rather than a single limit: $30,000 per person, $60,000 per accident, $10,000 property damage, plus $25,000/$50,000 uninsured and underinsured motorist protection, and $20,000 medical and $20,000 non-medical personal injury protection. Cover is also required if a lease runs 120 days or more. Scrap metal and used parts licence types are exempt.

The Building, and the Four-Hour Rule

Dealerships are treated as a commercial operation and must be in a commercial location. In agricultural and industrial areas, zoning officials may consider a special use permit.

The commercial building must be a permanent, enclosed building on a permanent foundation, connected to local sewer and water or compliant with local sanitation codes, adapted for commercial use, and conforming to local zoning.

One requirement people miss sits on the application itself: alongside your hours of operation you declare the hours your records are available for inspection — a minimum of 4 consecutive hours, at least once a week. Changing those hours later requires written notice from an owner or officer to the Dealer Licensing Unit before the change.

The application also travels with a stack of numbered forms: PS2410 commercial location checklist, PS2421 zoning verification, PS2420 workers’ compensation certification, PS2446 surety bond, PS2405 demonstration/in-transit plates, PS2407 lease verification or proof of building ownership, and PS2404 franchise agreement if applicable.

Letting It Lapse Costs More Than a Late Fee

Minnesota’s expirations are staggered through the calendar year, and renewal may begin on the fifteenth of the month before yours expires. You lose all dealer privileges between expiry and a new licence being granted.

• Within 60 days: you pay both the application fee and the annual renewal fee, plus any other fees — and everyone resubmits fingerprints and background checks.
• More than 60 days: you must re-apply from scratch, get another 90-day temporary licence, and are assigned a new dealer number. Previously submitted documents become void and are not acceptable for the new application.

How to Get Licensed, In Order

1. Form the entity and get your MN Tax ID and any DBA names on file.
2. Secure a commercial building on a permanent foundation in a commercially zoned location.
3. Complete fingerprinting and background checks for every owner, board member and executive officer.
4. Bind the $50,000 bond on form PS2446 — originals are filed with the Dealer Licensing Unit — and the itemised liability cover.
5. Assemble the checklist forms (PS2410, PS2421, PS2420, PS2407) accurately; a misstatement can bar you for a year.
6. File with the $250 fee, then pass the DVS Dealer Inspector’s visit inside the 90-day temporary period.

Frequently Asked Questions

How much does a Minnesota dealer license cost?

$250 for all dealer license types, with a $50,000 surety bond on form PS2446. The exception is a DSB license, covering motorized bicycles, boats and snowmobile trailers, which is $10 with a $5,000 bond.

Does Minnesota require fingerprinting for a dealer license?

Yes, as of January 1, 2026. All applicants listed on the license, including owners, board members and executive officers, must complete fingerprinting, a background check, and a consent release allowing the attesting documents to be provided to the DVS Dealer Licensing Unit for review. Renewing dealers must resubmit these forms too.

What building does Minnesota require for a car dealership?

A commercial building, meaning a permanent enclosed building on a permanent foundation, connected to local sewer and water or compliant with local sanitation codes, adapted for commercial use and conforming to local zoning. Dealerships are treated as a commercial operation and must be in a commercial location.

What happens if a Minnesota dealer license application is denied?

You must wait one year to reapply. All dealer plates must be surrendered to the DVS Dealer Licensing Unit, your dealer privileges become invalid, and there is no refund on license and plate fees. Failure to meet the commercial checklist requirements, or any misstatement on it, can trigger the denial.

Taxes, licensing and hiring are covered in our full guide to starting a business in Minnesota.

Sources

Source	What It Covers
Minnesota DVS — Motor Vehicle Dealer Guide	January 1, 2026 fingerprinting and background check rule, $50,000 bond, itemised liability minimums, commercial building and zoning requirements, 90-day temporary licence and inspection, one-year wait after denial, lapse rules at 60 days, staggered expirations
Minnesota DVS — Motor Vehicle Dealer License Application	$250 licence fee and $50,000 bond, $10 DSB licence and $5,000 bond, licence types, required forms PS2410/PS2421/PS2420/PS2446/PS2405/PS2407/PS2404, four-consecutive-hours record inspection rule
Minnesota DVS — Dealers	Dealer Licensing Unit contact and online renewal