OwnerUnlocked

Starting a auto repair shop: your first-month checklist

The usual order of things. Pick your state below for its exact rules, deadlines and official links.

  1. Check the shop registration rules

    Most states don't require a statewide shop registration, though a few do (including California, Florida, Michigan and New York). Your city still needs a business license and zoning approval for a shop, and you'll need a plan for used oil and other waste.

  2. Get EPA Section 609 certified for A/C work

    Required by federal law to service vehicle air conditioning for pay. EPA details

  3. Get garage liability and garagekeepers insurance

    Garage liability covers accidents at your shop; garagekeepers coverage protects customers' cars while you have them. See options

  4. Get your EIN

    Free from the IRS, online in about 10 minutes. Banks, clients and payroll all ask for it. You never need to pay a service for it. How to get it free

  5. Open a business bank account

    Keeps the company's money separate from yours, which is what protects your LLC. See options

  6. Register for sales tax if you sell taxable goods or services

    Most states require a seller's permit before your first taxable sale.

  7. Payroll and workers' comp before your first hire

    Most states require workers' comp once you have employees, and payroll software handles the tax filings. See options

Pick your state

What insurance costs

CoverageMedian per month
General liability$54
Business owner's policy (BOP)$149
Workers' compensation$150
Commercial auto$103

Source: Insureon, Apr 2025. Your price depends on your work, location and history.