If you are a Vehicle Dealer in Maryland, you will need a Dealer or Trailer Surety Bond and license to operate a dealership. Dealers can apply for a license through the Marlyand Department of Transportation, Motor Vehicle Administration.
License application requirements are as follows:
Complete the application and pay the license fees. Applicants must be able to pass a criminal background check.
Applicants must obtain zoning approval from local authorities.
Provide proof of Workers Compensation Coverage (unless exempt).
Obtain a Trader's License from the circuit court in the county where the dealership will be located.
Obtain a Business Registration Letter from the MD State Department of Assessment and Taxation.
Provide a repair facility contract for repair work on vehicles sold. The repair facility must be within five miles of the dealership.
If a franchise dealer, provide a copy of the franchise agreement. Also, complete the New Vehicle Certification Form.
Obtain liability insurance for vehicles that will be sold.
If applicable provide the following: Letter of Good Standing, Use and Occupancy Permit, and Dealer Orientation Request (for dealer training).
Obtain a surety bond from SuretyGroup.com. The surety bond amount is based on the number of vehicles sold or projected to be sold:
New Vehicle Dealer Bond, New Motorcycle Dealer Bond or New Emergency Vehicle Dealer Bond
Boat Trailer Dealer Bond = $5,000
Trailer Dealer Bond (Under 15 feet in length) = $5,000
Manufacturer Bond or Second Stage Manufacturer Bond, Distributor Bond, or Factory Branch License Bond
The premium that you pay for a Maryland Vehicle Dealer Bond is dependent on credit, the bond amount required and length of experience in vehicle sales. Bond amounts over $50,000 will require business and/or personal financial statements.
Contact our Surety Bond Specialists at:
Hours: 8:00-5:00 CST, Monday through Friday