In a lot states these days it is illegal to sell more than two cars a year without a dealer license. If you are planning to flip cars or even make it a full time business, it is worth getting one. Not only will you not be hassled by the IRS, but you will also be able to get into more wholesale dealers and auctions.

Below is a sample of some of the fees you will pay to get your dealer license:

DMV Application Fee $151

Dealer Plate Fee $50 average (Includes County Fees)

DMV Test Fee:  $16

Fingerprinting Fee:  $50 on average

Fictitious Name Statement Fee from County Recorder:  $30 on average, plus a publication fee, which is another $75 on average.

City Business License Fee:  $100 per year average (some cities charge more, some charge less).

Bond Fee:  $800 to $1,500 per year

The list above covers most of the major fees associated with getting a license. Please note that this is just a sample and that fees may be different state to state. Again, this may seem expensive when starting out, but now that you are licensed and can buy from wholesale and more auctions, all it will take is profit from one car a year to pay for it.