Though starting a driving school in the United States may sound easier compared to other businesses. But the procedure required could be long and time-consuming. One has to pass several stages of being eligible and making your business eligible to run this responsible business. The process is not necessarily tricky – you just have to know what to do.
It all starts with an idea and the desire to educate the trainees with dedication. If your theoretical, practical, judgmental, and maneuver fundamentals are clear; you are ready to turn your dream business of starting a driving school in the United States into reality.
This article covers the general requirement for starting a driving school business in New York, Chicago, Boston, San Diego, Washington D.C., Seattle, Las Vegas, Miami, Atlanta, Dallas; and all major cities inclusive of all states across the United States.
To start a driving school business, you need the proper credentials and experience and the necessary driving school business permitting requirements for each location where you plan on doing business.
If all goes according to plan, your driving school business will be open for business.
In this article, We will walk through each step of starting up your own driving school business so that no matter how much experience you have in the industry, this guide will help get you started.
1. Incorporate your driving school as a corporation or as a limited liability company
You will want to choose the type of business entity that is right for your driving school. A corporation or a limited liability company (LLC) are the two most common choices, although many others exist.
A corporation has more formal requirements and may be more costly to operate than an LLC. Still, it offers more excellent protection from legal liabilities and could earn you more in tax deductions.
An LLC is more straightforward and less expensive to form than a corporation. Still, it offers less protection from legal liabilities and no tax advantages beyond those available through operating as a sole proprietorship or partnership.
2. Obtain a Federal Tax Identification Number
At this point, you should have a working business plan and a good understanding of the industry you plan to enter.
Now it’s time to obtain a federal tax identification number, which will enable you to open a bank account, file tax returns, and apply for licenses (such as city or state licenses).
In addition, obtaining an Employer Identification Number (EIN) will help ensure that your driving school business operates legally by filing annual reports with the IRS.
3. Obtain an Employer Identification Number
- Obtain an employer identification number (EIN). As a driving school business owner, you must obtain an EIN to open a bank account and pay your taxes as a business owner.
You can obtain the number online, by phone, or by mail.
- Open a bank account. You need a place to store your money, so it’s safe and doesn’t get lost in paper piles or shoe boxes on your office floor.
Your bank can help you open an account and set up direct deposits for employees’ paychecks.
4. Get the correct type of Business Insurance and Liability Insurance
You will need to get business insurance and liability insurance. The coverage you should carry will depend on your location, industry, and arrangements with other parties.
For example, if you rent vehicles from other companies, those companies may also require additional insurance coverage from you.
5. Decide what type of Driving School you want to run
The first step to starting a driving school business is deciding what type of school you want to run.
Your options include running your school as a sole proprietorship, partnership, corporation, or LLC (limited liability company).
Your choice of driving school business structure will depend on the level of regulation in your state and any legal issues that might affect your business.
For example, plan to offer driver’s education classes for high school students before they take their driving tests.
Operating as an LLC may be beneficial because it limits personal liability for owners’ assets if someone sues them for damages incurred by their students’ accidents or violations.
6. Get a Commercial Driver’s License
When starting a driving school in the United States, you’ll also need a commercial driver’s license (CDL) to operate a larger vehicle; like a school bus or tractor-trailer.
The same goes for dump trucks, box trucks, and other large vehicles. If you want to operate any of these vehicles with passengers onboard, your CDL must be valid.
7. Acquire Certificates in First Aid and CPR
To operate a driving school business, you must be certified in first aid and CPR. You can do this by taking a course and passing an exam.
You can also take courses and exams simultaneously or just one of these options.
The American Red Cross offers online training courses for those who prefer not to complete their certification in person.
8. Go through the necessary Training Program
Once you’ve decided that you want to pursue a career as a driving instructor, the next step is to go through the necessary training program.
-This is essential because you must be certified by your state and local governments to teach others how to drive.
Training programs can be found through local driving schools and community colleges.
In addition, some states may offer training courses online or through private organizations like AAA clubs.
9. Register your driving school with the DMV
Register your driving school with the DMV in each state that you plan on doing driving school business in.
Depending on the vehicle you plan on using, you may need to apply for a business license, occupational license, driver’s education license, and school bus license. Depending on each state’s requirements, the DMV will help guide you through this process.
10. Register your driving school as an Educational Institution
Register your driving school as an educational institution with your county, city, or state. Each state has its laws and regulations for driving school business.
You must register your driving school with the state where it will operate.
You will have to obtain a business and occupational license if required in that area. Some states require an additional school license, so check with them before starting.
You may also be required by law to get a business tax certificate after registering with the government agencies listed above.
11. Promote Your Business
Promote your business by getting listed in local directories or through word of mouth.
There are many ways to promote your driving school business, but the most popular is to get listed in local directories.
-This can be done by purchasing ad space from a newspaper or magazine, or it can be done through yellow page listings and other online directories as well.
-This way, anyone who wants to learn how to drive can find your business quickly!
12. Credentials and Experience
You can start a driving school if you have the required credentials and experience and the necessary business permitting requirements for each location where you plan on doing driving school business.
You will need a business license in each state where you want to do business. Depending upon your state’s laws, there may be additional requirements or limitations that we recommend that you review with an attorney before starting your driving school business.
Be sure to research whether or not there are any restrictions regarding who can operate a driving school in your area of operations.
If so, ensure all employees who will be providing instruction meet those minimum requirements before hiring them as instructors at your school location.
You should also check for any other local regulations or ordinances that might affect how many schools are allowed per town/city limits or what types of vehicles are allowed on their streets at certain times.
Conclusion On Starting a Driving School In The United States
Starting a driving school business is a great way to make money, but it can also be very stressful and time-consuming.
You have to make sure that you have all the necessary licensing, insurance, and business certificates before starting up your driving school business so that you don’t run into any problems later on down the road.
It’s also important to remember that this industry requires continuous education; keeping up with new laws passed by Congress or state legislatures will help ensure compliance with federal regulations while providing additional training opportunities.