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Start a scrap metal business

Start your scrap metal business.Keep every purchase on record.

Our office forms your scrap metal or recycling company in any state, gets the EIN, keeps your books and runs payroll, and our agency insures your yard, trucks and equipment.

Start my scrap metal businessGet an insurance quote

Reviewed by Orkun Ozkaymak, CPA, MBAClients in all 50 states and abroad

$500company setup, EIN included
50 + DCstates we form companies in
1 officeformation, taxes and insurance
2011preparing taxes since
Step by step

How to start a scrap metal business

  1. 1

    Form the company and get an EIN

    Our office forms your LLC or corporation in the state where you operate and gets the EIN, so your scale tickets, bank account and truck titles are in the company name.

  2. 2

    Check zoning and state licensing

    Scrap yards need the right zoning. Many states license or register scrap metal dealers, and buying vehicles or vehicle parts for scrap often needs a separate state license.

  3. 3

    File local licenses and permits

    Cities and counties often license scrap dealers, junk haulers and recycling facilities, and some require environmental permits. Check the rules for your yard address and the towns where you collect.

  4. 4

    Set up purchase records

    Most states require scrap buyers to record each purchase, copy the seller's photo ID and describe the material. Many states also restrict buying catalytic converters and paying cash.

  5. 5

    Insure the yard and run payroll

    Our agency quotes general liability, commercial auto, equipment and pollution coverage. Our office runs payroll and keeps your books in QuickBooks Online.

Filings and prices

What our office files for you.Prices shown before you send.

Pick what you need on the request form. Ozfield's fees are shown here; government fees are passed through at cost.

  • City of Chicago business license IllinoisThe city fee is $500 or $1,000 for 2 years depending on the license type, paid to the city.
    $179
  • Payroll and state unemployment setupPayroll accounts, state unemployment registration and your first payroll.
    Quoted by our office
Company setup is $500 plus the state fee, EIN included.
The request form adds your filings and shows the full estimate as you go.
Build my estimate
Insurance from the same office

Coverage in place on day one.Quoted by our agency.

Check the coverage you want on the request form and our insurance team sends quotes from multiple carriers. Nothing is bound without your OK.

Start my scrap metal businessGet a quote only
  • General liability
  • Commercial auto
  • Pollution liability
  • Workers' compensation
After you open

The filings that come every year.

Our office keeps these on your calendar so nothing is missed. How we work with scrap and recycling yards →

IFTA returns

Jan 31 · Apr 30 · Jul 31 · Oct 31. For trucks that cross state lines.

Form 2290

August 31. Heavy vehicle use tax for qualifying trucks.

Form 941 and state payroll

Quarterly. Yard and driver payroll returns.

Inventory valuation

Year end. Metal on hand valued for your return.

Questions

What new owners ask us.

Something else on your mind? Call 773-536-9272 and our office will help, in English or Turkish.

What records do scrap metal buyers have to keep?
Most states require scrap metal dealers to record each purchase, including the seller's name and address, a copy of a government photo ID, the vehicle plate, and a description and weight of the material. Many require photos and keep the records for several years. Our office sets up your books so purchase records and payments tie out at tax time.
Can I buy catalytic converters for scrap?
Many states now restrict the purchase of detached catalytic converters because of theft. Common rules limit who may sell them, require proof of ownership or a vehicle record, and ban or limit cash payments. Check your state law before you buy. Our office helps you keep the payment records and tax forms these purchases require.
Do I need a license to collect scrap with a truck?
Many cities license junk haulers or peddlers who collect scrap by vehicle, and some states register scrap collectors. Your truck also needs commercial auto insurance in the company name, and a heavier truck may need federal or state motor carrier registration. Our office forms your company, and our agency quotes the truck coverage.
What insurance does a scrap yard need?
Scrap and recycling businesses usually carry general liability, commercial auto for trucks and roll off containers, equipment coverage for scales and loaders, and pollution liability. Workers' compensation is required in most states once you have employees. Our agency quotes these together for your yard and fleet.

Ready to start your scrap metal business?

Answer a few questions, see your estimate and send it to our office.

Start my scrap metal business773-536-9272