Smalley Insurance Agency, Inc.
Smalley Insurance Agency, Inc.

             Getting a New Dealers License?


Getting a Dealers License in the State of Kansas  is not difficult, even though it may seem like it at times.  Our Agency is willing to help walk you through the process.  There are several steps you will need to take.  The items highlighted can be obtained in our office, on our website or we can email them to you.  If you stop by our office we can supply you with a New Dealers Packet which includes the forms and instructions you will need.


     1.     FIRST THINGS FIRST    The state requires every dealer to obtain a $30,000 Dealers Bond.  These bonds are based primarily on the applicant’s credit.  The first thing you should do is to make sure you qualify for the Dealers Bond.  Fill out the  Dealer Bond Request  and email or FAX it to our office.  We will submit it to the bonding company and should have the results in 24 hours.  There is no cost or obligation for submitting the bond.  If you can't qualify for a dealers bond there is no point in proceeding.


     2.    The next thing to do is decide on a name for the dealership and what the ownership type will be.  The ownership type can be a sole ownership, a partnership, a limited liability corp (LLC), or a regular corporation.  Once you have selected a name and type of ownership you will need to obtain a Federal Employer Identification Number (FEIN) and a State Sales Tax Number.  We can help you apply for both.


     3.    After the bond is approved and a name is chosen, you will need to find a location.  Make sure your location meets the  State Requirements  before you sign a lease.


     4.    After you have chosen a location, obtain a State Application and complete it with the necessary information.  The application will require signatures from the local zoning commission to verify the location qualifies and a signature from the County Treasure verifying you do not owe any back property tax.


     5.    In addition the application requires a certificate of insurance issued by an admitted insurance carrier.  In order to obtain an insurance quote from our agency, please fill out the  Dealer Information form.  The quote normally will take 2 to 5 days, depending on it's complexity.


     6.    After you have obtained the necessary signatures from the zoning and county treasure attach the certificate of insurance and the original dealers bond received from your insurance agency and submit to the state along with the necessary payment.  


Once completed, the necessary paperwork can either be mailed or delivered to the Dealer Division in Topeka.  In order to reduce turn around time we recommend the paperwork be delivered and not mailed.  Once received by the State, the application will be reviewed and if found inaccurate or incompelete, it will be returned for your correction.  If you wish to deliver it to our office, in person or by regular mail, we will review the application to make sure it is complete and correct.  Once this has been done, we will see to it the paperwork is handcarried to Topeka and submitted to the Department of Revenue.

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© Michael Smalley