Illinois SOS Form VSD 324 Dealer License Application – If you plan to sell five or more vehicles in Illinois during a calendar year, you must obtain a vehicle dealer license from the Illinois Secretary of State. The primary form for this process is Form VSD 324 — Dealer License Application. This official document is required for new and used vehicle dealers, motorcycle dealers, trailer dealers, manufactured home dealers, and certain specialty designations.
This guide provides current, accurate information for applicants in the United States based on official Illinois Secretary of State resources. Always verify details directly with the state, as requirements can be updated.
What Is Form VSD 324?
Form VSD 324 is the official application used by the Illinois Secretary of State Vehicle Services Department, Dealer Licensing Section, to issue a Certificate of Authority for vehicle dealers. It collects information about the business entity, owners, location, vehicle types sold, and supporting documentation.
You can download the fillable PDF form directly from the Illinois Secretary of State website:
Download Illinois Form VSD 324 (PDF)
Official instructions are available on Form VSD 659:
Download Instructions for Dealer License (VSD 659)
Who Needs a Dealer License in Illinois?
Under the Illinois Vehicle Code (625 ILCS 5/5-101 and 5-102), any person who sells, deals in, or consigns five or more vehicles in a calendar year, or who acts as a broker, intermediary, or advertises as a dealer, must hold a valid dealer license. This includes:
- New and used vehicle dealers
- Used vehicles only
- Motorcycle dealers
- Trailer dealers
- Manufactured home dealers
- Salvage dealer designations
- Buy-here-pay-here used vehicle dealers
Private individuals may sell up to four vehicles per year without a license. Selling five or more requires Form VSD 324 and full compliance.
Key Requirements Before Completing Form VSD 324
Applicants must meet several prerequisites before submitting the application:
- Business registration — Register with the Illinois Department of Revenue and obtain a Retailer’s Occupation Tax number.
- Established place of business — A permanent office and sales lot that is not a residence. Two licensed entities cannot share the same location.
- Zoning approval — Complete Form VSD 481 (Notice of Proper Zoning), or provide a Chicago city business license if applicable.
- $50,000 surety bond (or certificate of deposit) in the business name and the Secretary of State’s name. Manufactured home dealers require a $150,000 bond. Bond is generally required for the first 60 months of operation.
- Liability insurance — Minimum coverage of $100,000 bodily injury per person, $300,000 per accident, and $50,000 property damage. Policy must not expire before December 31 of the license year.
- Criminal background check — Fingerprinting through an Illinois State Police-approved live-scan vendor. Submit the receipt with the application.
- Dealer training — First-time used vehicle dealer applicants must complete an 8-hour training course provided by the Secretary of State before the license is issued. Contact [email protected] or call 217-785-2050 to register.
- Franchise agreement — Required if selling new vehicles.
- Lease agreement — If leasing the premises, the lease must run through at least December 31 of the license year.
Source: Official Illinois Secretary of State Dealer Licensing materials and Dealer and Remitter information page.
How to Complete Form VSD 324?
The form is divided into four main sections. Do not complete it until you have read all instructions on VSD 659.
Section I — Business Information
- Select the type of dealer license (mark only one).
- Provide the firm’s legal name, business address, county, telephone, email, and Retailer’s Occupation Tax number.
- List makes of vehicles sold (attach franchise letters if applicable).
- Identify the business entity type (proprietorship, corporation, partnership, etc.).
- List names, residence addresses, dates of birth, and driver’s license numbers of the proprietor, partners, members, trustees, or (for corporations) officers, directors, and 10%+ shareholders.
Section II — Background and Premises Questions
- Answer questions about prior licensing, denials, revocations, or felony convictions.
- Indicate whether you own or lease the premises and provide lot and building dimensions.
- Confirm you have a permanent office, adequate repair facilities (or a repair contract), and list any supplemental locations.
Section III — Affidavit and Statement
Initial and date the Affidavit and Statement confirming you understand Illinois Vehicle Code requirements, anti-theft laws, record-keeping obligations, and that principals have not been convicted of certain felonies or multiple violations of consumer protection and tax laws.
Section IV — Fees and Notarization
Calculate fees, sign before a notary public, and attach payment by check, draft, or money order payable to the Secretary of State. Do not send cash.
License Fees (Current as of Latest Official Guidance)
- Certificate of Authority (primary location): $1,000 (or $500 if applying June 15–December 31)
- Supplemental Certificate of Authority: $100 or $50 (depending on timing and type)
- Master dealer plate set: $45
- Duplicate plates: $13 each
- Additional identification cards: $3
Fees are subject to change. Confirm the current schedule on the official form or by contacting the Dealer Licensing Section.
Where and How to Submit Form VSD 324?
Mail the completed, notarized Form VSD 324 together with all required supporting documents and fees in one package to:
Illinois Secretary of State
Vehicle Services Department
Dealer Licensing Section
501 S. Second St., Rm. 069
Springfield, IL 62756
Phone: 217-782-7817
Processing typically takes 2–4 weeks and includes a mandatory inspection of the established place of business. Do not submit the application until the location is ready for inspection.
Licenses expire on December 31 of the issuing year. Renewal notices are generally mailed in September.
Additional Resources from Trusted Sources
- Illinois SOS Dealers and Remitters Publications and Forms
- Official Dealer and Remitter Information
- Form VSD 481 — Notice of Proper Zoning
- Illinois Vehicle Code (625 ILCS 5/) available via the Illinois General Assembly website
Important Tips for a Successful Application
- Ensure every name, address, and detail on the bond, insurance, lease, and Form VSD 324 matches exactly.
- Submit all required items together — incomplete packages are returned.
- The business address and phone number cannot be the same as a personal residence.
- First-time used-vehicle applicants must finish the 8-hour training before the license can be issued.
- Keep copies of everything for your records and future audits.
For the most current information, always refer to the official Illinois Secretary of State website or contact the Dealer Licensing Section directly. Requirements are governed by state law and administrative rules and may be updated.