How to start a auto repair shop in California (2026)
Everything a new auto repair shop in California needs in the first months: registration, licenses, taxes, insurance and the yearly deadlines, with official links.
1. Register your business
Most owners form an LLC with the California Secretary of State. Once it's registered, find it here to claim a free website and see your exact dates.
2. Licenses
California requires repair shops to register with the Bureau of Automotive Repair before doing paid repairs. Official site
Your city or county may also require a general business license or tax receipt.
3. Taxes
Get a free EIN from the IRS first. How. Register with California before your first taxable sale. Register in California
If you expect to owe $1,000 or more in federal tax for the year, you pay estimated tax four times a year.
California's yearly report
A Statement of Information is due within 90 days of forming, then every two years by the end of your formation month. California LLCs also pay an $800 yearly tax; the first payment is due by the 15th day of the 4th month after you form. The state fee is about $20.
Example: an LLC formed today would have its first one due Jan 2, 2027.
Your first-month checklist
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Check the shop registration rules
California requires repair shops to register with the Bureau of Automotive Repair before doing paid repairs. Official site
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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
Register with California before your first taxable sale. Register in California
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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
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.
Other trades in California
Sources: state agency sites linked above; annual report rules compiled from state sites (checked Oct 2026). Rules change, so confirm with the agency before filing.