Dealer License Application (Form HSMV 86056) in Florida: A Comprehensive Guide for Aspiring Auto Dealers
If you’re looking to start a car dealership in Florida, obtaining a Dealer License is the first and most critical step. The key document in this process is the Dealer License Application (Form HSMV 86056) issued by the Florida Department of Highway Safety and Motor Vehicles (FLHSMV). This article provides a detailed overview of the application process, requirements, and useful tips to navigate Florida’s dealer licensing system successfully.
What is Form HSMV 86056?
Form HSMV 86056 is the official Dealer License Application used by individuals and businesses seeking to legally operate as an automobile dealer in Florida. This form is essential for applying for any type of dealer license, including:
- New Vehicle Dealer
- Used Vehicle Dealer
- Wholesale Dealer
- Motorcycle Dealer
- Trailer Dealer
Filing this form correctly and providing all required documentation is necessary to comply with Florida state laws and start selling vehicles legally.
Who Needs to File Form HSMV 86056?
Anyone planning to sell, lease, or deal in motor vehicles in Florida must apply for a dealer license using Form HSMV 86056. This includes:
- Entrepreneurs starting a new car dealership
- Existing business owners expanding into vehicle sales
- Individuals planning to sell used cars on a wholesale basis
- Motorcycle dealers and trailer dealers
Operating as a dealer without a license can result in hefty fines, penalties, and potential criminal charges under Florida law.
Key Sections and Requirements of the Dealer License Application
The application form is designed to collect important information about the applicant and their business. Here are the main components you need to provide:
1. Business Information
- Legal business name (individual, partnership, corporation, LLC)
- Business address (must comply with Florida dealer location requirements)
- Business phone number and email
2. Applicant Information
- Full name and contact details of the owner(s)
- Social Security Number or FEIN (Federal Employer Identification Number)
- Proof of legal presence in the U.S.
3. Dealer Type and License Class
- Specify the type of dealer license you are applying for (new, used, wholesale, etc.)
- Choose the appropriate license class based on the vehicles you intend to sell
4. Business Location Details
Florida law requires that your dealership have a fixed, permanent business location with:
- A display area for vehicles
- A permanent, enclosed building with an office
- A sign displaying the business name that’s visible from the road
5. Proof of Zoning Compliance
You must obtain a zoning compliance letter or certificate from the local government confirming your business location is zoned for vehicle sales.
6. Liability Insurance
Applicants must provide proof of garage liability insurance with minimum coverage as specified by Florida statutes.
7. Background Check and Fingerprinting
All owners and partners must submit to a background check and fingerprinting to ensure eligibility.
8. Sales Tax Number
A Florida Department of Revenue sales tax number is required to collect and remit sales tax on vehicle sales.
Supporting Documents to Submit with Form HSMV 86056
Along with the completed application, Florida requires several supporting documents:
- Copy of your business formation documents (Articles of Incorporation or LLC documents)
- Copy of your valid Florida driver license or ID card
- Proof of location compliance (photographs and lease or deed)
- Proof of liability insurance
- Sales tax registration certificate
- Surety bond, if applicable (usually $25,000 for used car dealers)
How to Submit the Dealer License Application in Florida
You can submit your completed Form HSMV 86056 and all required documents to the FLHSMV by mail or in person at a local tax collector’s office. Online submissions are not currently accepted for dealer licenses.
The processing time generally takes 4-6 weeks. During this period, the FLHSMV may conduct inspections of your business location.
Example Scenario: Starting a Used Car Dealership in Miami
John wants to open a used car dealership in Miami, Florida. Here’s how he uses Form HSMV 86056:
- John fills out the Dealer License Application specifying he wants a used vehicle dealer license.
- He obtains a commercial lease for a property zoned for vehicle sales.
- John secures garage liability insurance and obtains a sales tax number.
- He submits all documents along with Form HSMV 86056 to the Miami-Dade County tax collector.
- After passing the background check and location inspection, John receives his dealer license and can legally sell cars.
Common Mistakes to Avoid When Applying
- Incomplete or inaccurate forms: Double-check all fields and signatures.
- Not meeting location requirements: Florida is strict about fixed business locations with proper signage.
- Skipping zoning approvals: Local government zoning compliance is mandatory.
- Missing insurance or surety bonds: These are non-negotiable.
- Ignoring fingerprinting and background checks: Delays or rejections happen if these are not completed.
Why is Getting a Dealer License Important in Florida?
A dealer license gives you legal authority to:
- Buy and sell vehicles at wholesale or retail
- Access wholesale auctions
- Title and register vehicles under your dealership name
- Avoid penalties for unlicensed vehicle sales
Florida’s automobile market is one of the largest in the U.S., making it a lucrative opportunity for licensed dealers. Proper licensing ensures you comply with state laws and gain consumer trust.
Conclusion
The Dealer License Application (Form HSMV 86056) is your gateway to becoming a licensed vehicle dealer in Florida. By understanding the requirements and preparing your application thoroughly, you can efficiently navigate the licensing process and launch a successful dealership. Whether you’re starting a new or used car dealership, motorcycle or trailer sales, following Florida’s rules is essential for long-term success.
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For more detailed information, visit the official Florida Department of Highway Safety and Motor Vehicles website or consult with a professional licensing expert.
