Buying or Selling a Vehicle - Montana Department of Justice 2025

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7 Steps to Earning Your Montana Dealer License Select Your Dealer License Type. Register Your Business With the State. Secure a Dealership Location. Get Liability Insurance and an Auto Dealer Bond. Pass a Location Inspection. Gather Your Paperwork and Fees. Submit Your Dealer License Application.
In California a private person can sell up to five used vehicles a year without a license. However, this applies only if the person is not selling vehicles as a business, legitimately bought the vehicle for personal use, and is not attempting to avoid licensing requirements.
Montana requires a bill of sale to be filled out by the buyer and the seller for private vehicle purchases. The official form for this is MV24 which records information like the purchase price, the odometer reading, and the VIN of the vehicle in question.
How the Loophole Works. The loophole centers around the formation of a Montana Limited Liability Company (LLC) for the sole purpose of vehicle registration. By setting up an LLC in Montana, out-of-state residents can purchase and register their vehicles under the LLC, thereby legally avoiding their states sales tax.
How many cars can you sell in each state/province? StateMaximum Number of Cars You Can Sell Missouri 6 Montana 4 Nebraska 4 Nevada 346 more rows Jun 7, 2023
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To sell your vehicle, you must have the title in your possession. If you dont have the title, you or the owner of record will have to apply for a replacement title from the state where the vehicle was last titled.
Having said that, there is no strict law regarding the number of cars you can sell as a private seller before being considered as operating as a dealership. The general rule has been if you sell 5 or more cars per year as a private seller, the DMV wants you to have a dealer license.

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