How to Start an Auto Repair Shop in New York

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    • 1). Make a business plan. This is the first step toward making your idea a reality. Decide on a goal, a budget, a location and a general plan for how you want your business to run. The details of your business are up to you. The budget is especially important since it will determine how many employees and parts you can afford for your auto shop once you get started.

    • 2). Register your business. Your auto shop must be registered under an assumed name with the State of New York Department of State (see Reference section). During this process you will need to provide your own name, the name you have made up for your business and the addresses of any locations where you'll be doing business.

    • 3). Apply for an Employer Identification Number (EIN). Your EIN is necessary to open a business bank account, apply for your business license and file your business taxes in New York. Visit the IRS website page for the EIN application and apply online (see Reference section).

    • 4). Apply for a permit. In the state of New York you must have a permit or license to do business. To apply for a permit/license, you must go to the New York State Permit Assistance website (see Reference section) and follow the prompts that will determine what type of permit you are eligible for. The type depends on what services you will or will not perform and whether your business is a sole proprietorship or not. The type of permit/license available to you can only be determined by the online assessment.

    • 5). Get a loan. Once you have received your permit and EIN, you can apply for a small business loan. Approach a bank that you have a good relationship with, and provide a business plan for them to look over. Loans may come quicker to those who have already acquired a permit, business plan and EIN, because it assures banks that they are dealing with a legitimate business. Car parts and machinery don't come cheap and need to be financed. A small bank loan can help you acquire parts, tools and manpower to take on clients in your new repair shop.

    • 6). Register for state taxes. In New York, all business owners must register for state taxes, including income tax, withholding tax and use tax. Visit the Department of Taxation and Finance online services (see Reference section) for specific details concerning your business.

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