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No, you can be a sole proprietor but you do need to have an EIN (Employee Identification Number) number issued to you from the IRS.

Current law for most states says that you have a physical address as your business address in an area that is zoned and approved by the state for such use. Now you can choose to have a license as individual or as a corporation. The only difference is on the amount of liability you are willing to take personalty. For the extra few hundred dollars It's always best to form a corporation, specially when dealing with cars and will save you a lot of headaches in case something happens.

Different states have different regulations on how to qualify for a dealers license. So its a good idea to check with your local DMV to check. But generally speaking once you have a license from any state then that license is good anywhere in the states.

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Q: Do you have to OWN a business to obtain a wholesale license?
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How do you get a auto wholesale license?

In order to get a wholesale license you need to check with the Department of Motor Vehicles in the state you live in. For example the requirements in California are you need to have a business office with at least two parking stalls and pay money for your wholesale business license( to own your own business). If there is a company that wants to employ you as a wholesaler you can just get a regular retail/ wholesale license at the Department of Motor Vehicles and pay a minimal fee along with getting fingerprinted.


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Can you work out of your house with a wholesale car dealer license?

All state require an office for a wholesale license. Many states such as California will allow the office to be in your home for a wholesale license only. A retail license usually requires a "car lot" where your customers go to conduct business. Some states will accept an office, other states require a legitmate car lot and may dictate the size, office space, parking spots etc. With a wholesale license you can only sell to other dealers, in and out of your state. Wholesale dealers cannot sell to the public. Check with your own state DMV to find the licensing agency for your state and to obtain the rules and regulations.


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