I got an email today from a potential customer asking me if I could prove I was a licensed and insured company. I am not insured at the moment but I am in the process of doing so. As for a license, do you need a license to detail cars? I would hate to lose a potential customer so any help would be much appreciated. Thanks!
license and insurance?
- Thread starter mbs431
- Start date
Apollo_Auto
New member
No, you don't need a license to detail cars AFAIK (though I haven't been back to the US in many moons, so...). This is not yet considered as a "skilled trade" like a plumber or electrician.
Apollo_Auto
New member
mini1 said:
We think alike
. "Buy this piece of paper from us so you can go out and make money that we can tax..." OK let's not hijack the thread, but...tssdetailing
New member
I have a business license and insurance. Apparently KY doesn't require service tax though. The license cost me about 25 and the insurance about 1500 for the year.
Innovative Detailing
New member
In California if you are mobile they require you to have a business license in the cities that you provide your services in...and if your smart you should be insured. You must also contain your wastewater to be county and city compliant
NEW LAW-BILL NUMBER: AB 236 California State license $300.00 fee total yearly and a surety bond minimum of $15,000
NEW LAW-BILL NUMBER: AB 236 California State license $300.00 fee total yearly and a surety bond minimum of $15,000
Approx $40 year here for the license and $650 for insurance.
Insurance-I have enough cash to cover burning the paint on a panel (which is about 97% unlikely to happen.) Driving a clients car is where if something happened the insurance would pay off.
Liability-If I'm onsite for a detail and god forbid the clients child trips over one of my cords, gets hurt or worse. I'm covered. Of course I take every precaution to prevent this from happening.
Insurance-I have enough cash to cover burning the paint on a panel (which is about 97% unlikely to happen.) Driving a clients car is where if something happened the insurance would pay off.
Liability-If I'm onsite for a detail and god forbid the clients child trips over one of my cords, gets hurt or worse. I'm covered. Of course I take every precaution to prevent this from happening.
WAS
Driven
Business license and trade certificate are 2 different things. Detailing does not require a trade certificate, but any business, whether you reno roofs, detail cars, or sell hot dogs, requires a business license (if your particular municipality requires it).
I am actually curious about this as well. I would like to get a basic policy, but I don't want to "over insure" myself. I do about 1 car a week right now, and I have tried looking online for insurance, but there are so many policies that I am unsure which ones I need for sure.
I am located in KY. There are NO licenses required to have a detailing business.
I am located in KY. There are NO licenses required to have a detailing business.
brwill2005
New member
I really think people are confusing a license, like some industries require, and a tax license. A tax license establishes your business with the county and state. This is important because it shows you are intent on following the rules by paying your taxes. It also officially establishes your business; usually your business license is on file at the courthouse. This comes into play when applying for a business loan. I mean here the license is $30 a year if gross receipts are less than $200,000; really no reason not to have one.
safetyman2010
New member
gmblack3a said:
Guy in my city just accidentally burned a customers garage down and both his cars are probably getting written off. Afaik he has no insurance and is most likely going to get sued by the homeowner's insurance company. Crazy not to have insurance.
Thomas Dekany
New member
ShineShop said:
How did that happen?
WAS
Driven
ShineShop said:
Crazy ! I wouldn't go without insurance either, just not worth the risk. However, I don't necessarily consider non-insured detailers hacks.... I better put my flame suit on after that comment :chuckle:
safetyman2010
New member
tdekany said:
From what I heard he was monkeying around with the guy's gas heater because he was cold and then left it on when he left. Almost burned the entire house down but the home owner woke up and smelled the smoke. Both the cars have serious smoke and fire damage and are most likely being written off plus the garage is pretty much destroyed. Stupid with a capitol S.
safetyman2010
New member
WAS said:
The guy in question is supposedly a pretty good detailer but a monumentally stupid businessman.
WAS
Driven
ShineShop said:
I can absolutely agree with that. I assume this detailer isn't a fixed shop location (since he was at someone's residence). He would only need to get personal liability insurance on himself as a person, which really doesn't cost much, even if it's covering him during business endeavours. Fixed shop location insurance is much more pricey, but still not so rediculous that it's out of the question.
My comment was more geared towards what I've read in various threads over the past few months. Many Autopians seem to think that if a detailer doesn't carry an insurance policy, then they're a "hack" and are running a "back alley detailing business", which isn't the case at all, IMO.
safetyman2010
New member
WAS said:
I typically refer to someone that does poor quality work as a hack but do believe someone that doesn't carry proper insurance and have the proper equipment isn't a professional (and is risking their future due to the liability). I remember years ago there was a guy that posted on this subject on another forum and had gotten in an accident while picking up and delivering a customer's car. The accident was his fault and the people he hit were injured and sued. He had no insurance and the vehicle owner's insurance company indeed covered the claim on behalf of the owner then turned around and sued the detailer to recover the money they were out. Last I remember was he was going to lose his house over that. Just not worth the risk and
Back to the original topic as I don't want to side-track this further... 
I believe the license the client was referring to was a business tax license (or Seller's License here in WI). It issues your business a state tax ID number to be used for when and how much sales taxes you pay. I can't really see where any state or municipality wouldn't require such a license for anyone doing business and charging people for a service... it needs to be taxed.
I believe the license the client was referring to was a business tax license (or Seller's License here in WI). It issues your business a state tax ID number to be used for when and how much sales taxes you pay. I can't really see where any state or municipality wouldn't require such a license for anyone doing business and charging people for a service... it needs to be taxed.
WAS
Driven
ShineShop said:
Definitely not worth risking your life and home over, that's for sure.
todd@bsaw said:
Here in Canada, we are issued Business Numbers (or GST numbers as they're also called) to collect federal taxes on good and services sold. For us, it's separate from the municipal business license (and the Business Number doesn't actually cost anything). At the end of the year at tax time, or quarterly depending on revenue volume, you calculate GST paid on purchases vs GST charged on sales, and you figure out if you owe the government or if the government owes you.
I'm curious, how do you folks in the USA remit the taxes you charge on your sales ? I'm assuming you all charge tax on top of your details ?