How to Get a Wholesale Dealer License in California

If you are planning to start a wholesale business in California, obtaining a wholesale dealer license is a necessary step. This license allows you to legally engage in buying and selling goods at wholesale prices. Here is a step-by-step guide on how to get a wholesale dealer license in California:

1. Determine the type of wholesale business: Decide on the type of goods you wish to sell at wholesale, such as electronics, clothing, or automotive parts.

2. Research license requirements: Visit the California Department of Motor Vehicles (DMV) website or contact their office to understand the specific requirements for obtaining a wholesale dealer license.

3. Educational course: Complete a six-hour educational course approved by the DMV. This course covers topics such as dealer responsibilities, record-keeping, and vehicle sales and transfers.

4. Location: Secure a suitable location for your wholesale business with adequate space for storing and displaying goods.

5. Fictitious business name: Register a fictitious business name with the county clerk’s office if you plan to operate under a name other than your own.

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6. Business insurance: Obtain liability insurance for your wholesale business to protect against any potential damages or accidents.

7. Application and fees: Complete the Wholesale Dealer Application (Form OL 12) provided by the DMV. Pay the necessary fees, including the application fee and license fee.

8. Background check and fingerprinting: Undergo a background check and fingerprinting process to ensure your suitability to hold a wholesale dealer license.

9. Bond requirement: Obtain a $10,000 surety bond, which is a form of guarantee that you will comply with all the laws and regulations related to your wholesale business.

10. Submit documents: Submit all the required documents, including the completed application, proof of educational course completion, insurance certificate, and bond proof, to the DMV.

Once the DMV approves your application, you will receive your wholesale dealer license, allowing you to legally conduct wholesale transactions in California.

Frequently Asked Questions:

1. How long does it take to get a wholesale dealer license in California?
The processing time varies, but it generally takes around 4-6 weeks.

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2. Can I operate a wholesale business from home?
Yes, as long as you have sufficient space to store and display your goods.

3. Is the educational course mandatory?
Yes, completing an approved educational course is a mandatory requirement for obtaining a wholesale dealer license.

4. Do I need a retail dealer license as well for selling to the public?
No, a wholesale dealer license allows you to sell goods at wholesale prices only.

5. Can I apply for a wholesale dealer license if I have a criminal record?
Each application is evaluated on a case-by-case basis, but certain criminal convictions may disqualify you from obtaining a wholesale dealer license.

6. Are there any renewal requirements for a wholesale dealer license?
Yes, the license needs to be renewed annually, and you must complete continuing education courses to maintain your license.

7. Can I sell goods online with a wholesale dealer license?
Yes, you can sell goods through online platforms as long as you comply with all applicable laws and regulations.

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