How to Get a Dealer License In Illinois

Step 1: Register the business

First, register your dealership with the Illinois Department of Revenue and get your sales tax permit. 

You'll also need to prove your dealership is in good standing with the Department of Business Services by purchasing a Certificate of Good Standing for $25 online. 

Step 2: Establish a physical business location

Next, you'll need to establish a place of business where all records and vehicles will be located. The specific signage and facility requirements are outlined later in this article. 

You’ll need to provide information about the space, including building and lot dimensions and proof of a lease or purchase. Once you apply, there will be a formal site inspection (more information below).  

Note: Your dealership cannot, under any circumstances, be located in a residency.

Step 3: Complete dealer training course (used dealers only)

Next, complete an 8-hour training course. The Illinois SOS offers the dealer training course twice a month in Chicago and Springfield at no charge. You can register online.

Register online, then mail a check for the exam fee payment and a copy of your dealer license application to the Vehicle Services Department at least two weeks before the class. The class costs $1,000 if it starts before June 15, or $500 if it’s after June 15. 

Step 4: Complete criminal background check

To complete your criminal background check, make an appointment with an approved Live Scan vendor. You’ll attach your completion receipt with your application materials.

Step 5: Get bonded

You’ll need to hold a $50,000 Illinois auto dealer bond for the first 5 years of business. This is a financial guarantee to protect clients and ensure you pay your vehicle registration fees and taxes.

Step 6: Get insured

You'll also need liability insurance for your dealership. The policy must be valid until at least December 31st of the year that your license is issued. The minimum coverage amounts are:

• $50,000 for property damage
• $100,000 for bodily injury
• $300,000 for each bodily injury accident

Step 7: Submit application

Now, you’re ready to submit your Illinois auto dealer license application packet with the following materials:

• Dealer license application form, must be notarized
• $50,000 Illinois motor vehicle dealer bond
• Certificate of liability insurance
• Criminal background check approval
• Proof of dealer training course completion
• Proper zoning form, unless located in Chicago
• If property is leased: dealership lease copy
• If selling new vehicles: copy of the franchise agreement from the vehicle manufacturer
• If selling vehicles at an additional location: supplemental certificate of authority
• If repair shop: proof of a hazardous waste generator number (issued by the Illinois EPA)
• Check or money order for fee payment

Mail all documents to the Secretary of State Vehicle Services Department at the address below. 

Illinois Secretary of State

Vehicle Services Department

Dealer Licensing Section

501 S. Second St., Rm. 069

Springfield, IL 62756

Step 8: Pass site inspection

Next, a representative from the SoS office will schedule an inspection to ensure your dealership meets the requirements. 

Note: The state can take 2-4 weeks to review your inspection before issuing your Illinois motor vehicle dealer license and dealer plates.

How to Renew Your IL Dealer License

Illinois motor vehicle dealer licenses expire annually on December 31st. The state will send you expiration notices in September. You can renew your Illinois auto dealer license online or by mail. It must be notarized, just like your original application.  

To renew your license by mail, send your renewal application, fees, and all required materials to the same address you mailed your original license application. If anything has changed, contact the Secretary of State for further instructions.