Starting a carwash: Ten steps to build a business, part 2 - Professional Carwashing & Detailing

Starting a carwash: Ten steps to build a business, part 2

The U.S. Small Business Administration's last five steps to starting a business, including links to specific online resources for each step.

Read part 1 here.

Today the process for starting a new business should include planning, making key financial decisions and completing the necessary series of legal activities. To assist new investors, operators and entrepreneurs, the U.S. Small Business Administration (SBA) put together a online list of 10 steps to plan, prepare and manage a new business.

The SBA’s next five steps to starting a business — including links to specific online resources for each step — are:

Step 6: Register a business name

This step lets a new owner know how to register a business name with his or her state government.

Step 7: Get a tax identification number

Don’t forget the taxes. Here, learn which tax identification number your car care business will need to obtain from the IRS and a state revenue agency.

Step 8: Register for state and local taxes

New business owners must register with the state to obtain a tax identification number as well as workers’ compensation, unemployment and disability insurance.

Step 9: Obtain business licenses and permits

Listed here are federal, state and local licenses and permits required for a startup business.

Step 10: Understand employer responsibilities

Follow the legal steps an operator needs to take to begin hiring wash employees.

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In an increasingly competitive marketing driven economy, no service-based business can afford to be seen as a novelty, and the carwash industry is no exception. There are already nearly 60,000 carwash and auto detailing businesses in the U.S. as of 2022, a number that is continually growing.1 While demand for this industry declined in 2020 due to a decrease in consumer spending and shelter in place orders as a result of the COVID-19 pandemic, revenue is predicted to rise by at least 9.4% as the economy continues to reopen.2

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