Aircraft Broker Course

Aircraft Dealer License and State Registration in the US

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An aircraft broker in the United States needs no federal license. A dealer, who buys aircraft and sells them on, may need two kinds of paperwork. One is the FAA's Dealer's Aircraft Registration Certificate. The other is state licensing or registration, which a minority of states require, and a few write broadly enough to catch brokers who never own the aircraft.

This page sets out both, with the source behind each line. Whether a broker needs any license is covered in aircraft broker license and certification in the US, and is not repeated here. Nothing below is legal or tax advice.

Key points

  • The FAA does not license dealers. Its Dealer's Aircraft Registration Certificate is a registration shortcut for aircraft a dealer owns, under 14 CFR Part 47, Subpart C.
  • The certificate costs $10, each additional certificate $2, and all of them expire one year after the first was issued.
  • Arizona, Washington, Oregon, North Dakota, South Dakota, Michigan and Oklahoma require an aircraft dealer license or registration. Massachusetts requires dealers holding federal dealer certificates to register them.
  • Arizona and Washington define a dealer to include people who broker aircraft, so a broker there may need a license without ever taking title.
  • Florida requires aircraft brokers to register with its Department of Revenue as aircraft dealers to collect sales tax, even when they never possess the aircraft.
  • There is no separate "jet dealer license"; the same rules apply to every aircraft type.

Broker or dealer: why the label matters

The difference is title. A broker arranges a sale for a commission and never owns the aircraft. A dealer buys it, holds it and resells it. Many firms do both. Federal rules attach to ownership, so a pure broker has little to do with them. Some states, though, define "dealer" by the activity of selling, which can include arranging a sale for someone else. For how ownership moves at closing, see how an aircraft sale closes.

The FAA Dealer's Aircraft Registration Certificate

Every civil aircraft operated in the US must be registered by its owner, which means re-registering at each change of ownership. Subpart C of 14 CFR Part 47 offers dealers an alternative. The FAA issues the certificate to US manufacturers and dealers to "facilitate operating, demonstrating, and merchandising aircraft" without a fresh Certificate of Aircraft Registration for each aircraft at each transfer (47.61(a)(2)).

Who can hold one

Under 47.65 the applicant must have "an established place of business in the United States", must be "substantially engaged in manufacturing or selling aircraft" and must be a US citizen as federal law defines it. For a company, that means US control and at least 75 percent of the voting interest held by US citizens. The application, AC Form 8050-5, asks which of three businesses you are substantially engaged in: manufacturing aircraft, selling new aircraft under a manufacturer's franchise or similar authority, or selling used aircraft "through ordinary trade channels". It requires a physical business address. A P.O. box is not accepted.

What it allows, and what it does not

  • It can be used "for any aircraft he owns" (47.61(b)). Before flying an aircraft on it, a dealer other than a manufacturer must send the Registry evidence of ownership, such as a bill of sale. There is no recording fee for this (47.67).
  • Flights are limited to required flight testing and flights "necessary for, or incident to, sale of the aircraft" (47.69).
  • The aircraft may be flown by the owner, its agent or employee, or a prospective buyer. A buyer may fly it for a demonstration only under the direct supervision of the certificate holder or its agent.
  • Use is limited to the United States, except to deliver an aircraft to a foreign buyer under the conditions in 47.69(b). The certificate must be carried in the aircraft.

It is not a license to sell and does not cover charter, rental or personal flying. If the certificate lapses while an aircraft is registered under it, the owner must apply for ordinary registration or the FAA cancels the registration number (47.61(c)).

How many, how much, how long

A dealer may hold "one or more" certificates in addition to the original (47.61(b)), which lets several aircraft fly at once. The fee is $10 for the first and $2 for each additional certificate issued to the same dealer (47.17). A certificate "expires 1 year after the date it is issued", and each additional one expires on the same day as the original (47.71). There is no renewal form as such. The FAA's own description is that "A dealer must re-apply annually to maintain their certificate." Changes of name, address, citizenship or business status must be reported at once.

The FAA counted 3,453 applicants in fiscal year 2024, according to its November 2025 notice renewing the form. Check the FAA forms page for the current edition of AC Form 8050-5 before you file.

Does a broker need one?

Only if the broker owns the aircraft. The certificate works only for aircraft its holder owns, so a broker who never takes title has nothing to use it on.

States that license or register aircraft dealers

The table lists only states where we read the statute, rule or agency page ourselves. "Brokers" means people who arrange a sale without taking title. Fees and bonds are as published on the date shown. It is not a complete list.

StateWhat is requiredBrokers who never take title?Fee or bondSource (read)
ArizonaLicense from the ADOT director to act as an aircraft dealer; tax privilege license; report each purchase, sale or consignment within ten days. Acting without a license is a class 6 felonyYes. A dealer includes anyone "offering to assist another person with the purchase, sale or exchange of an aircraft for compensation", and the ten-day report applies "whether or not the aircraft dealer takes title"$10,000 surety bond or cash deposit. License fee not confirmedA.R.S. 28-8381 to 28-8386 (17 Oct 2026)
WashingtonAircraft dealer's license from WSDOT; unlicensed dealing is a misdemeanorYes. A dealer is anyone "acting as a broker of aircraft" or offering two or more aircraft for sale in a calendar year$75 a year; extra dealer certificates $10; $25,000 surety bondRCW 14.20 (17 Oct 2026)
Oregon"Any dealer in new or used aircraft" must apply to the Oregon Department of Aviation for a dealer's licenseNot addressed in the text we readStatute says $250 a year; the agency rule says $100. Ask the agencyORS 837.075; OAR 738-060-0020, read on a public mirror (17 Oct 2026)
North DakotaDealer license from the ND Aeronautics Commission, issued only to dealers with a permanent place of business and a repair shop on a public-use airportNot addressed on the agency page$150; expires 31 Decemberaero.nd.gov, citing NDCC 2-08 (17 Oct 2026)
South DakotaAnyone who wants "to sell or solicit as a dealer the sale of aircraft" must apply; the applicant must own at least one registered aircraftUnclear. "Solicit" is broad, but the ownership condition points to stock-holding dealers$200 for two years; commercial use stamp $100SDCL 50-12-2, -12, -13; SD DOT (17 Oct 2026)
MichiganAircraft dealer license from MDOT Aeronautics; a Michigan sales tax license is required firstNot addressed on the agency page$25; valid for the calendar yearMDOT, citing MCL 259.82 (17 Oct 2026)
OklahomaAnyone "engaging in the business of selling either new or used aircraft" needs a dealer license from the Oklahoma Tax Commission, one per locationNot addressed in the rules we readFee not confirmedOAC 710:15-2, citing 3 O.S. 254.1 (18 Oct 2026)
MassachusettsDealers must register their federal Dealer's Aircraft Registration Certificates with the MassDOT Aeronautics Division each yearTied to the federal certificate, which only owners can use$80 a year per dealer plus $37 per aircraft decalmass.gov (18 Oct 2026)
FloridaSales tax registration, not a dealer license. Anyone who sells or offers aircraft for sale must register with the Department of Revenue as an aircraft dealerYes. "Aircraft brokers are also required to register … as an aircraft dealer", even without possessionNo license fee statedFlorida DOR brochure GT-800009, R. 04/15 (17 Oct 2026)

Three more states offer dealers an optional alternative to registering each aircraft. They are a choice for stock-holding dealers, not a condition of selling:

  • Minnesota. State rule 8800.4800 says "An aircraft dealer is not required to obtain an aircraft dealer license." The license is needed only to withhold dealer aircraft from the state registration tax or to get a commercial use permit. The fee may be $10 a year (Minn. Stat. 360.63).
  • Virginia. Dealers may take a fleet registration covering all aircraft they own instead of registering each one. The statute caps the noncommercial dealer fleet fee at $75 a year, and dealer aircraft may be flown for demonstration only (Va. Code 5.1-5; 24VAC5-20-70).
  • Iowa. A dealer that owns an aircraft may fly it for up to three years for transporting, testing, demonstrating or selling it without registering it, if it obtains a special certificate for each year (Iowa Code 328.28).

Some states exempt dealer stock from state registration without licensing the dealer. Montana, for example, exempts "aircraft owned and held by an aircraft dealer solely for the purpose of resale" (MCA 67-3-201). We found no dealer license in that section.

States we checked but could not confirm

We could not read a statute or agency page that settles the question for these states. Their absence from the table does not mean "no requirement".

  • Idaho. Search results point to dealer registration under Idaho Code 21-114, but the legislature and transport department sites did not load for us.
  • Texas. Tax Code chapter 163 covers sales and use tax on aircraft and has no dealer license. We did not review the rest of Texas law.
  • California. We found no state aircraft dealer license. The tax agency's Publication 79A (October 2018) refers to a "California licensed aircraft broker" who may collect use tax, without saying which license that is.
  • Nevada, Utah, Wyoming, Connecticut, Alaska, Wisconsin, New Mexico and Nebraska. We found no dealer provision we could read and confirm.

When a broker who never takes title may still need to register

The usual answer for a broker is no license at all. The exceptions we found fall into three groups. Treat them as questions to ask, not conclusions.

  • Broad dealer definitions. Washington's dealer definition includes "acting as a broker of aircraft". Arizona's includes anyone "offering to assist" with a sale for compensation. A broker working in either state should assume the license question applies until a lawyer or the agency says otherwise.
  • Sales tax collection. Florida expects brokers to register and collect tax "at the time of sale or delivery". Arizona makes an unlicensed dealer liable for unpaid transaction privilege tax on aircraft it "brokered". Michigan requires a sales tax license before a dealer license. A tax agency may treat a broker who handles a taxable sale as the seller.
  • Where the work happens. These rules generally follow where the business operates or where the aircraft is delivered, not where the broker lives. A broker in a state with no dealer law can still be caught by another state's rules when a deal closes there.

Before your first sale, check your home state and the states where the aircraft are located or delivered, with both the aviation agency and the tax agency. Then have an aviation attorney or a tax adviser who handles aircraft transactions confirm the answer. This page is general information, not legal or tax advice.

What a sales broker should learn about title, liens and escrow is in aircraft sales broker training.

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Frequently asked questions

Is there an FAA aircraft dealer license?

No. The FAA issues a Dealer's Aircraft Registration Certificate under 14 CFR Part 47, Subpart C. It lets a manufacturer or dealer fly aircraft it owns for testing, demonstration and sale without re-registering each one. It does not license anyone to sell aircraft.

How much does the FAA dealer certificate cost?

$10 for the first certificate and $2 for each additional certificate issued to the same dealer, under 14 CFR 47.17. Each certificate expires one year after the original was issued, and the dealer re-applies annually on AC Form 8050-5.

Which states require an aircraft dealer license?

Of the states we could verify, Arizona, Washington, Oregon, North Dakota, South Dakota, Michigan and Oklahoma license aircraft dealers. Massachusetts registers federal dealer certificates, and Florida requires sales tax registration. Others were not confirmed, so check your own state's aviation and tax agencies.

Do I need a dealer license if I never own the aircraft?

Usually not, but it depends on the state. Washington and Arizona define dealers to include brokers, and Florida requires brokers to register for sales tax. Check where you operate and where the aircraft is delivered, and confirm with an aviation attorney.

Do states require an aircraft dealer bond?

Some do. Washington requires a $25,000 surety bond and Arizona a $10,000 bond or cash deposit. We did not find bond requirements in the other texts we read.

Sources

Every source below was checked on 17 or 18 October 2026.

About this guide. Aircraft Broker Course is published by the International Aircraft Broker Institute (IABI), which sells aircraft broker training. Where a page mentions an IABI course, that is our own product. No course can promise a job, an income or a license. This is general information, not legal, tax or financial advice. How this site works.