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Salespersons License Information

With over 18,000 salesperson, they are the driving force behind auto sales in the Commonwealth of Virginia.

01

Salesperson License Renewal

Your salesperson’s license must be renewed at the same time as the dealership license renewal, this could be every year or every two years depending on the cycle of the dealership renewal.  

MVDB will send the Dealer a “Renewal Package” with pre-printed MVDB 61 applications for all currently licensed salespersons at the dealership.

 

The Dealer must then follow the steps below to renew the dealer license:

  • Ensure that an MVDB 61 renewal application is completed for ALL applicable staff.
  • Verify that salesperson information on each MVDB 61 is accurate and complete, and that the form is signed by the salesperson and the dealership authorized staff.
  • If a salesperson who is currently licensed did not receive a pre-printed MVDB 61,the Dealer will complete a handwritten MVDB 61 and send it to the MVDB along with the renewal documents. You can find the downloadable MVDB 61 here.
  • Submit the renewal documents in a timely manner back to MVDB for processing.

Once MVDB staff receives the “renewal package,” we will process the MVDB 61 application and send a salesperson license for the current period directly to the dealership where you are working.  Please destroy the expired license appropriately. 

02

Salespersons No Longer Employed

The Dealer is responsible for notifying the Board if any pre-printed MVDB 61s in your renewal packet are for salespersons no longer employed at the dealership. The Dealer should write on the front of the pre-printed MVDB 61 “NO LONGER EMPLOYED-TERMINATED”, and send it back to the MVDB with the “renewal package”.  The dealer should submit a MVDB 41 to the MVDB when terminating (transfer, resign, retirement, etc.) a salesperson.

The Code of Virginia (§ 46.2‐1518) states that the Dealer must notify the Board “not later than the tenth day following the month of the termination”. 

It is the Dealer’s responsibility to verify that their posting of the list of salespersons is up-to-date.  All changes in staffing are updated on the “Search Active Dealer” section of the website once the application has been processed. For more information on notifying the MVDB of salespersons who have been terminated, please see Terminated Salespersons.

Salespersons Must Be Employees

03

The Code of Virginia defines a salesperson as follows:

  • “… (i) any person who is hired as an employee by a motor vehicle dealer to sell or exchange motor vehicles and who receives or expects to receive a commission, fee, or any other consideration from the dealer; (ii) any person who supervises salespersons employed by a motor vehicle dealer, whether compensated by salary or by commission; (iii) any person, compensated by salary or commission by a motor vehicle dealer, who negotiates with or induces a customer to enter into a security agreement on behalf of a dealer; or (iv) any person who is licensed as a motor vehicle dealer and who sells or exchanges motor vehicles. For purposes of this section, any person who is an independent contractor as defined by the United States Internal Revenue Code shall be deemed not to be a motor vehicle salesperson.”
In addition, anyone licensed as a salesperson must be an employee of the dealership.  Licensed salespersons may not be “independent contractors” and paid via IRS form 1099. For more information, please read the following brochure:  Independent Contractors Brochure published by the IRS

Must Be an Employee
Must have a W2

FORM K-1 (LLC)

Form K-1 is used by members of an LLC to report their share of the Corporation’s earnings (or losses).  If a member of an LLC is also a licensed salesperson, then by definition, they are also an employee of the LLC and the LLC must issue that employee an IRS Form W-2 at the end of the tax year.  Therefore, a member of an LLC who is also a licensed salesperson will receive both a K-1 and a W-2 at the end of the tax year.