Starting a successful appliance repair business takes more than knowing how to fix a broken refrigerator, air conditioner, or washing machine. One important aspect of successfully starting a business is researching and applying for the licenses and permits that are needed to operate legally.
The question, “what business license do I need to start my business” is a common one, but in reality, a business will often need multiple licenses, permits, and registrations from federal, state, and local agencies.
Related: Guide to starting an appliance repair business
To not miss any important licenses and permits, we recommend also checking with your local Chamber of Commerce, economic development agency, or use a business license service like Incfile or LegalZoom.
What Licenses Do You Need to Start an Appliance Repair Business?
Federal Licensing
Federal law requires any repair technician performing service on refrigeration systems to be certified by the Environmental Protection Agency (EPA). Most appliance repair businesses will need to obtain Type 1 certification, which is a small appliance classification where the refrigerant charge is under 5 pounds.
State Licensing
Only a handful of states require licensing for small appliance repair. Licensing is more common for commercial equipment, typically under a contractor or mechanical licensing.
Here are a couple of states with licensing for appliance repair businesses:
If an appliance repair business also installs appliances in Texas, a Texas Residential Appliance Installer License is required from the Texas Department of Licensing and Regulation.
Appliance repair businesses in California are regulated by the Bureau of Household Goods and Services. There is no education or certification requirement, though there is a fee.
Local Licensing
Licensing is more common for small appliance repair at the city and county level than from the state. A few examples include:
Nassau County, New York, requires a Home Appliance Repair License. To obtain this license, an application must be submitted to the Nassau County Department of Consumer Affairs, along with a recent photograph, proof of residence, proof of business location, and more.
A Home Appliance Repair License is required to work on small appliances from the Suffolk County Department of Labor, License & Consumer Affairs in Suffolk County, New York.
It’s worth noting, too, that some cities do not allow appliance repair shops to operate out of the home. Turlock, California, and Kaysville City, Utah are two of several.
While many states and towns/cities don’t have specific licensing for an appliance repair business, there will likely be general licensing requirements. Here are a few of the common licenses and permits that an appliance repair business will need:
Also see: Appliance repair software overview
General Business License or Permit
Depending on where the business is located, a general business license or permit may be required. A few states require a business license; however, they are more commonly found at the city level.
Learn more: Business license requirements by state
Federal Employer Identification Number
The Federal Employer Identification Number (also referred to as a FEIN, Employer Identification Number, EIN, or Federal Tax ID Number) is a unique nine-digit number that identifies a business with the Internal Revenue Service (IRS).
Any business with employees or those that form as a partnership, Corporation, and in many cases an LLC, the business will need to get an EIN.
Sole proprietors and single-owner LLCs without employees can use the owner’s social security number.
Learn: How to get an EIN
Sales Tax Permit or Number
In order to sell products and/or offer certain services, a state sales tax permit (or tax ID number) may be needed. This permit creates an account number with the state’s Department of Revenue or a similarly named state taxing agency.
Additionally, hiring employees will also likely require a state tax number.
Learn: How to get a sales tax permit
Resale Certificate
When buying appliance repair parts to fix a customer’s appliance, an appliance repair company can purchase these items tax-free. A resale certificate (sometimes referred to as a seller’s permit) allows a business to purchase inventory, and instead of paying the sales tax to their vendor, they charge the sales tax to the end-user of the product.
A resale certificate only allows a business to not pay sales tax for items being resold, and sales tax will still need to be paid for supplies or equipment.
Learn: How to get a resale certificate
Certificate of Occupancy
In most communities, a retail business will need to secure a Certificate of Occupancy (CO) before opening. This certificate is typically obtained from the city, but sometimes from the county, and allows a business to occupy and operate from a building provided the building complies with zoning regulations, building codes, and any other local requirements.
A Certificate of Occupancy (also referred to as a home occupation permit) is also sometimes required for a home-based business.
Before starting your appliance repair business, be sure to check with the local zoning department to ensure the business can legally operate out of the chosen location.
Business Name Registration or DBA
While not necessarily a business license, it’s worth noting that in order to use a name for a business, many states require the registration of that name. Making matters more complicated, the process of name registration is different by state and the type of business entity.
For instance, sole proprietorships and partnerships generally need to register a business name (also referred to as a Doing Business As, DBA, fictitious name, or assumed name).
Learn: How to register a DBA
Corporations and LLCs register are a little easier in that their name is registered when forming the entity.
Related: What is the difference between a sole proprietorship, partnership, Corporation, or LLC?
Certifications
In addition to licensing, appliance repair businesses can also obtain certification to gain additional skills and industry-specific knowledge. One of these is the National Appliance Service Technician Certification from the International Society of Certified Electronics Technicians (ISCET).