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.
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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.
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Get EPA Section 609 certified for A/C work
Required by federal law to service vehicle air conditioning for pay. EPA details
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Get garage liability and garagekeepers insurance
Garage liability covers accidents at your shop; garagekeepers coverage protects customers' cars while you have them. See options
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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
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Open a business bank account
Keeps the company's money separate from yours, which is what protects your LLC. See options
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Register for sales tax if you sell taxable goods or services
Most states require a seller's permit before your first taxable sale.
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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
| Coverage | Median 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.