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Start a auto parts store

Open your auto parts store.Buy inventory tax free.

Our office forms your company in any state, sets up inventory tracking in QuickBooks Online, runs payroll and files your taxes, and our agency quotes coverage for your store and stock.

Start my auto parts storeGet 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 an auto parts store

  1. 1

    Form your company and get an EIN

    Our office forms your LLC or corporation in the state where you form and gets your EIN, so supplier accounts and your lease are in the company name.

  2. 2

    Register for sales tax and resale

    Register with your state's revenue department so you can collect sales tax and give suppliers a resale certificate for inventory you will resell.

  3. 3

    Get your local license

    Apply for the business license your city or county requires. If you sell used parts from salvage vehicles, many states require a parts recycler or dismantler license.

  4. 4

    Insure your store and inventory

    Our agency quotes general and products liability, property coverage for your stock, commercial auto for deliveries and workers compensation.

  5. 5

    Set up books, sales tax and payroll

    File your sales tax returns on time. Our office sets up QuickBooks Online to track inventory and cost of goods, runs payroll and files your income tax returns.

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.

  • Illinois sales tax registration and resale certificate IllinoisRegisters the company with the Illinois Department of Revenue.
    $250
  • 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 auto parts storeGet a quote only
  • General liability
  • Product liability
  • Property
  • 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 parts stores and distributors →

Illinois sales tax

20th of each month. Form ST-1 with exempt sales supported by certificates.

Out-of-state sales tax

Varies by state. Returns in each state where you have nexus.

W-2 and 1099-NEC

January 31. For employees and contractors.

Inventory count

Year end. Physical count and valuation 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.

How do I buy parts without paying sales tax?
Once you are registered with your state's revenue department, you give suppliers a resale certificate for parts you will resell. You then collect tax from your retail customers. Sales to registered repair shops for resale can also be exempt with their certificate. Keep every certificate on file in case of an audit.
Do I charge a tire fee on new tires?
Many states charge a fee on each new tire sold at retail, and the seller collects it and reports it with the sales tax return. The amount and rules differ by state. Check with your state's revenue department before you stock tires, and our office will track the fee separately in your books.
Do I need a license to sell used auto parts?
If you buy salvage vehicles and sell their parts, most states require a parts recycler, dismantler or salvage license, along with records of the vehicles you acquire. Selling only new parts usually does not trigger it. Check with your state's motor vehicle agency before you buy your first salvage vehicle.
What insurance does an auto parts store need?
Most stores carry general liability, products liability for parts that fail, property coverage for inventory and equipment, and workers compensation once they hire. Stores that deliver to shops add commercial auto. Our agency quotes these together in one package where it fits.

Ready to start your auto parts store?

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

Start my auto parts store773-536-9272