773-536-9272Book an appointment
Start a auto repair shop

Open your auto repair shop.Get licensed and insured.

Our office forms your company in any state, keeps your books in QuickBooks Online, runs payroll and files your taxes, and our agency quotes garage liability and garagekeepers coverage for your shop.

Start my auto repair shopGet 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 repair shop

  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 your lease, accounts and licenses are in the company name.

  2. 2

    Register for sales tax

    Parts you sell to customers are usually taxable. Register with your state's revenue department and get a resale certificate for buying parts you resell.

  3. 3

    Confirm zoning and local licenses

    Check zoning before you sign a lease. Some states and cities license repair shops, and spray booths often need an environmental or fire permit.

  4. 4

    Bind garage insurance

    Our agency quotes garage liability, garagekeepers coverage for customer cars, property and workers compensation for your technicians.

  5. 5

    Set up books, payroll and tax filings

    Our office keeps your books in QuickBooks Online with parts and labor tracked separately, runs payroll and files your federal and state 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 IllinoisParts you sell are taxable in Illinois.
    $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 repair shopGet a quote only
  • Garage liability
  • Garagekeepers
  • 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 auto repair shops →

Illinois sales tax

20th of each month. Form ST-1 for parts and supplies sold.

Form 941 and state payroll

Quarterly. Withholding and unemployment for your team.

W-2 and 1099-NEC

January 31. For employees and subcontracted work.

Business return

March 15 or April 15. Entity return with equipment depreciation.

Questions

What new owners ask us.

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

Do I need a license to open an auto repair shop?
It depends on where you open. Some states require a state repair shop registration, while others leave licensing to cities and counties. Nearly every shop registers for sales tax and needs zoning approval, and body shops that rebuild salvage vehicles often need a rebuilder license. Check with your state and city before you open.
Do auto repair shops charge sales tax on labor?
It depends on the state. Some states tax only parts and materials when labor is separately stated on the invoice, while others tax repair labor too. How you write invoices affects the tax. Our office sets up your QuickBooks Online items so parts and labor are tracked separately and your reports match your filings.
What is garagekeepers insurance?
Garagekeepers insurance covers damage to customer vehicles while they are in your care, such as fire, theft or an accident on a test drive. General liability alone usually leaves this gap. Our agency quotes garagekeepers together with garage liability and property coverage.
In Illinois, what about used oil and tire fees?
In Illinois, shops must store and recycle used oil and other wastes properly, and Chicago asks for a tire disposal contract if you handle tires. If you sell new tires, Illinois collects a tire user fee through the Department of Revenue on each one. Our office registers you for it along with your Illinois sales tax account.

Ready to start your auto repair shop?

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

Start my auto repair shop773-536-9272