How to Start a Car Dealership in Wyoming: WYDOT Dealer License and the $25,000 Surety Bond Under W.S. 31-16

October 29, 2026

Getting a Wyoming auto dealer license means applying to the Wyoming Department of Transportation (WYDOT) for a retail vehicle dealer license. Under W.S. 31-16-102, no one may act as a retail vehicle dealer without a valid WYDOT license. The license is only one piece of the job. You also need a registered Wyoming business entity, a principal place of business, a $25,000 surety bond, and possibly a sales tax license and workers' compensation coverage. This guide covers the wyoming dealer license process in the order that tends to work best, along with the mistakes that stall applications.

This article is informational content, not legal or tax advice. Talk with a Wyoming business attorney and a certified public accountant before you file, especially if you plan to take on a manufacturer franchise, dealer financing, or more than one location.

What You Need Before You Apply

Gather these items before you open the WYDOT application. Missing one document is the most common reason applicants restart the process.

• A Wyoming entity, usually an LLC or a profit corporation, with its formation documents filed with the Secretary of State
• A registered agent with a physical street address in Wyoming
• A principal place of business with a full street address
• A $25,000 surety bond from a corporate surety licensed in Wyoming, with its form approved by the Wyoming Attorney General
• Financial statements for the business
• Criminal history records for each officer and member, which WYDOT uses for its background check
• Your sales and use tax number, if you have one
• Franchise letters, if you are applying as a new vehicle dealer
• A list of every place of business you operate and your declared business hours
• The license fee: $25 or $100, depending on your expected volume

Step 1: Choose the Right License Class

WYDOT issues several license classes, and the class you choose determines what you can sell and which paperwork applies. The main options under W.S. 31-16-104 are:

• New vehicle dealer: covers new and used vehicles and requires franchise letters from the manufacturer.
• Used vehicle dealer: covers used vehicles only. If you plan to sell only used cars, this is the class to pursue.
• Out-of-state manufacturer, Wyoming-based manufacturer, and direct sale manufacturer: for businesses that build vehicles.
• 90-day temporary dealer permit: a permit that can cover the period while WYDOT investigates your application.
• Temporary RV display and sales permit: for out-of-state RV dealers. It carries a $500 application fee, filed at least 90 days before the event, and a $50,000 bond.

Franchise rules for new vehicle dealers appear in W.S. 31-16-109 to -111. This guide does not cover them, so review them with an attorney before you sign a franchise agreement.

Step 2: Form Your Entity With the Wyoming Secretary of State

Most dealerships operate as an LLC or a profit corporation. Start by searching your name on the WyoBiz business search. The name must be available and distinguishable from existing entries. An LLC name must include 'Limited Liability Company' or an approved abbreviation such as 'LLC' or 'L.L.C.' under W.S. 17-29-108. Entity names beginning with the letter A must be filed on paper, not online.

Articles of Organization for an LLC carry a $100 filing fee, and Articles of Incorporation for a profit corporation carry the same $100 fee. File through the WyoBiz portal. Online filings are active as soon as the filing is completed. Paper filings are processed in the order received and can take up to 15 business days. If you need faster paper processing, expedited service costs $1,400 for same business day service (received by 12:00 noon MT) or $700 for next business day service (received by 5:00 p.m. MT), charged per document on top of the filing fee. Filings that can already be completed online, including initial formations, are not eligible.

If you need time to settle on a name, a paper LLC name reservation costs $60 and holds the name for 120 days. There is no online reservation. The name reservation form is on the Secretary of State site.

Every entity must keep a registered agent in Wyoming. The agent needs a physical street address in Wyoming, including any suite number. A drop box does not qualify, and a PO box is accepted only in addition to a physical address. A commercial registered agent pays a $50 annual registration. Appointing a new agent and office costs $5.

If you will operate under a brand name different from your entity name, register a trade name. It is optional. The fee is $100 for a 10 year term, and the application is mail only and must be notarized. The trade name application is filed with the Secretary of State statewide, not with a county clerk.

Once formed, your entity owes a $60 annual report license tax, due the first day of the anniversary month of formation. You may file up to 120 days early. If it remains unpaid 60 days after the due date, the entity is subject to administrative dissolution. This is separate from your WYDOT license renewal, so track both.

Step 3: Register Locally With the City Clerk

Wyoming has no general statewide business license. Cities and towns issue local business licenses, and counties do not. The Secretary of State directs applicants to the city clerk in the city where the business will operate, so start there. Ask about any city business license, zoning for a vehicle sales lot, and sign permits. If your lot sits outside city limits, the county handles land use and building matters, so contact the county instead. Zoning and sign rules vary by location and are outside the scope of this guide.

Step 4: Set Up Sales and Use Tax

Vehicle sales follow a specific rule. Dealers do not collect sales tax on vehicles. The county treasurer collects it before the vehicle's first registration in Wyoming, under W.S. 39-15-107. You still need a Department of Revenue sales and use tax license if you make other taxable sales. Sales tax applies to goods and to enumerated services, including repair and alteration of personal property under W.S. 39-15-103(a)(i)(J). Parts sold over the counter and repair work on customer vehicles fall into that category.

The state sales tax rate is 4% as of October 29, 2026. County option taxes are added on top, and county rates change quarterly, so check the current rate chart at the Department of Revenue Excise Tax Division before you quote a price. The sales and use tax registration carries a $60 non-refundable application fee. Wyoming issues no resale certificate, so when you buy inventory for resale, you give the seller a signed certificate instead.

Step 5: Plan for Workers' Compensation

Wyoming's workers' compensation system is a monopolistic state fund run by the Department of Workforce Services. Motor vehicle and parts dealers (NAICS 441), repair and maintenance businesses (NAICS 811), and gasoline stations are compulsory under W.S. 27-14-108. Sole proprietors, partners, officers, and LLC members are excluded unless they elect coverage. If you hire employees in these industries, register before the first day of work. Wyoming levies no corporate income tax, personal income tax, or franchise tax, so there is no state income tax to withhold from payroll.

Step 6: Obtain the $25,000 Surety Bond

Under W.S. 31-16-103(h), the WYDOT bond is $25,000 and must come from a corporate surety licensed in Wyoming. The Attorney General must approve the bond's form. The bond guarantees the return of your license, plates, and temporary permits, and it is conditioned on your not violating the dealer act. It is not a bank account. If a valid claim is paid, the surety will expect you to reimburse it. Failing to keep the bond in force is grounds for WYDOT to deny, suspend, or revoke your license, so calendar the renewal.

This guide does not list bond premiums, because the surety agent prices the bond based on your credit and business history. Get quotes from more than one Wyoming-licensed surety, and ask the agent to confirm in writing that the bond form is the one the Attorney General approves.

Step 7: Submit the WYDOT Application and Pay the Fee

Assemble your application with your legal name and address, every place of business, a description of your principal place of business (required under W.S. 31-16-106), franchise letters if applying as a new vehicle dealer, financial statements, criminal history records for officers and members, sales and use tax numbers, and declared business hours. The fee is $25 for dealers selling fewer than 12 vehicles in 12 consecutive months and $100 for dealers selling 12 or more (W.S. 31-16-103(b)). Confirm the current WYDOT fee schedule at the time you file.

Ask WYDOT whether a 90-day temporary dealer permit is available while your application is investigated. This guide does not state a WYDOT processing time, so confirm the expected review period with WYDOT before you schedule a launch date.

Step 8: Operate, Renew, and Report

A WYDOT dealer license is valid for one year and expires at midnight before its anniversary date. Renewal requires reporting monthly retail sales for the prior 12 months (W.S. 31-16-103(a)). Keep the surety bond in force the entire time you hold the license. Set reminders for the license anniversary, the entity annual report, the bond renewal, and your sales tax filing schedule.

Fee Summary

Item	Cost	Agency or party	Notes
LLC Articles of Organization	$100 filing fee	Secretary of State	Active on completion when filed online
Profit corporation Articles of Incorporation	$100 filing fee	Secretary of State	Same processing rules as LLC filings
LLC name reservation	$60	Secretary of State	Paper form only, holds name for 120 days
Trade name registration	$100	Secretary of State	10 year term, mail only, notarized, optional
Annual report (license tax)	$60 minimum	Secretary of State	Due first day of anniversary month
Sales and use tax license	$60 application fee	Department of Revenue	Non-refundable
WYDOT dealer license	$25 or $100	WYDOT	Depends on vehicles sold over 12 consecutive months; confirm current schedule
Surety bond	$25,000 bond amount	Wyoming-licensed corporate surety	Premium is quoted by the surety agent
Temporary RV display permit	$500 application, $50,000 bond	WYDOT	Filed at least 90 days before the event
Commercial registered agent	$50 annual registration	Commercial agent	Applies if you use a commercial agent

Other Licenses That May Apply

• Rebuilt salvage titles: covered under W.S. 31-2-108. Review that section if your business rebuilds or sells rebuilt salvage vehicles.
• Salvage yards, wrecking yards, and junk dealers: check with your city or county and with WYDOT for the requirements that apply.
• Auto repair shops: this guide found no state license for auto repair. Repair work is taxable, and repair and maintenance businesses are compulsory workers' compensation employers.
• Car washes and laundromats: this guide found no state license. Confirm local requirements with the city clerk.
• Driving schools: workers' compensation treats automobile driving schools (NAICS 611692) as compulsory. Check with WYDOT about any state school licensing.

Common Mistakes to Avoid

• Treating the entity filing as the whole job. The Secretary of State registration and the WYDOT license are separate applications with separate agencies.
• Picking the wrong class. A used vehicle dealer license does not cover new car sales under a manufacturer franchise.
• Using a PO box as your only address. A registered agent or principal place of business needs a physical Wyoming address.
• Filing a name that is not distinguishable, or starting with A and trying to file online. Check the WyoBiz search first and use paper for names beginning with A.
• Using a bond from a surety not licensed in Wyoming, or accepting a bond form the Attorney General has not approved.
• Planning to collect sales tax on vehicles. The county treasurer collects it at first registration.
• Skipping monthly sales records. Renewal requires 12 months of reported retail sales, so keep clean records from the first sale.
• Confusing city and county roles. Cities issue business licenses, and counties handle land use and building matters.
• Assuming workers' compensation does not apply. Owners may be excluded, but employees hired in a compulsory industry generally need coverage.

What Results to Expect

Following these steps may put you in a position to open a licensed dealership, but your timeline depends on how quickly your entity, bond, and WYDOT paperwork move. Online LLC filings may become active as soon as they are completed, so the entity step may be the fastest. Paper filings can take up to 15 business days. If WYDOT grants a 90-day temporary dealer permit for your application, it may allow you to begin operating while the investigation finishes. A full license runs one year, and renewal depends on your bond, your monthly reporting, and your annual report staying current. This guide cannot promise approval, and WYDOT's review determines the outcome.

For planning help, the Wyoming SBDC Network can help you think through the startup steps. Confirm every fee and processing time with the agency before you pay. Contact the Secretary of State, the Department of Revenue, the Department of Workforce Services, and WYDOT directly, and use a Wyoming attorney and CPA for questions about business structure, franchise terms, and taxes.

This article is informational content, not legal or tax advice.