How to Become a Car Dealer in Alaska

How to Become a Car Dealer in Alaska

Starting a car dealership in Alaska requires careful planning and adherence to the regulations set by the Alaska Division of Motor Vehicles (DMV). This guide outlines the essential steps to become a licensed car dealer in the state.

1. Choose the Type of Dealer License

Alaska offers licenses for different dealer types, including:

• New Vehicle Dealer

• Used Vehicle Dealer

• Motorcycle or Snowmobile Dealer

• Wholesale Dealer

Be sure to choose the license type that matches the vehicles you plan to sell.

2. Establish a Business Location

You must have a permanent business location with the following:

• An office and display lot

• A permanent sign with the business name

• Zoning compliance with local ordinances

3. Register Your Business Entity

Register your dealership as a business entity with the Alaska Division of Corporations, Business and Professional Licensing. Obtain a business license from the Alaska Department of Commerce.

4. Obtain an Alaska Sales Tax Permit (if required)

Depending on your municipality, you may need to register for local sales tax collection. Alaska does not have a statewide sales tax.

5. Obtain a Federal Employer Identification Number (FEIN)

Apply for a FEIN through the IRS. This is necessary for tax filing and hiring employees.

6. Secure a Surety Bond

A $50,000 surety bond is required for most dealer types. This bond protects consumers and ensures legal compliance.

7. Secure Liability Insurance

You must maintain garage liability insurance as required by Alaska law. Minimums can vary based on the business type and municipality.

8. Complete the Dealer Application

Download and complete the Alaska Vehicle Dealer License Application. Submit the application with the following:

• Proof of insurance

• Surety bond certificate

• Photos of business location and signage

• Business license and corporate documents

9. Schedule a DMV Inspection

Before your license is approved, an Alaska DMV representative may inspect your business premises for compliance.

10. Await License Approval

Once approved, you will receive your dealer license and can begin legally selling vehicles in Alaska.

After obtaining your dealer license, consider using Carprolive for all your automotive software needs. From managing your inventory and offering a professional dealership website to accessing a full print forms library and enabling e-signature capabilities, Carprolive is built to support new and growing dealerships every step of the way.

Please note: The contents of this article are subject to change with any regulatory or legislative updates. This article does not constitute legal advice. Always verify the information with your state’s regulatory agency before proceeding.

Sources:

• Alaska DMV – Dealer License Requirements

• Alaska Vehicle Dealer License Application (Form 812)

• Alaska Business Licensing

• Alaska Division of Corporations