How to License My Auto Repair Shop
Running an auto repair shop can provide a great income and provide the individual great enjoyment on a daily basis. Unfortunately, sometimes a mechanic might spend so much time on the repair and service aspect of the business that they failed to learn how to license their auto repair shop correctly.
- Apply for your Employer Identification Number (EIN). You can do this at the Internal Revenue website (IRS). Obtaining the EIN certification does not cost you anything and having the EIN registration will identify your business. It is also necessary for tax purposes.
- Get your business license from either city hall or your local county government in your area. Fill out the application form completely and pay the required fees. Understand that you will have to renew your license annually and comply.
- Contact your state Department of Revenue department to apply for your sales tax certification. After you receive your certification, educate yourself on the procedures to calculate sales tax on service or repair.
- Visit your states hazardous waste department website to find information about the requirements to register for toxic waste removal. The site will list companies that pickup hazardous material and transport toxic matter from your auto repair shop. Choose a company but make sure you investigate the company to make sure they are reputable. Visit the Better Business Bureau website to see if they have a solid rating. After your research, create a contract with the company to pick up and dispose of hazardous liquid in the business such as power steering fluid, anti-freeze, motor oil, brake fluid, transmission and any other hazardous liquid you may have in your business.
- Obtain insurance for your business. Contact your auto or homeowners insurance carrier to see if they will cover your business as well. Choosing your existing carrier will most likely save you money with the multiple policy discount offered by most carriers.