Are you looking to open an auto repair shop in California or already operating one? Ensuring your business is legally compliant is crucial for success. In California, operating an auto repair shop requires registration as an Automotive Repair Dealer (ARD) with the Bureau of Automotive Repair (BAR). This registration is essential for any business that repairs, diagnoses, or even arranges for the repair of motor vehicles for compensation. Understanding these licensing requirements is the first step to confidently opening and running your auto repair services in California.
This guide provides a comprehensive overview of the ARD license, the application process, and what you need to know to operate legally and effectively in the Golden State.
Understanding the Automotive Repair Dealer (ARD) License
The Automotive Repair Dealer (ARD) license is a mandatory registration for any business in California that, for compensation, engages in:
- Repairing or diagnosing malfunctions of motor vehicles.
- Collecting compensation for automotive repair services that are referred or sublet to someone outside of their business or employee pool. This requirement, effective January 1, 2024, is a result of Assembly Bill 1263, expanding the scope of ARD registration.
Essentially, if your business works on cars for payment, you need an ARD license. This applies to a wide range of services, from routine maintenance to complex diagnostics and repairs. It’s important to note that this registration is separate from other licenses your business might require, such as those for specific services like Smog Checks or Vehicle Safety Inspections.
Types of Licenses and Fees
Depending on the services your shop offers, you might need more than just the basic ARD registration. Here’s a breakdown of the different licenses and their associated fees:
| License | Description | Application | Fee |
|---|---|---|---|
| Automotive Repair Dealer | Required for any business that repairs or diagnoses vehicle malfunctions for compensation, or collects payment for referred or sublet repair services. | Application Now online! | $200.00 |
| Smog Check Station | For ARDs licensed to perform inspections, diagnoses, and repairs related to vehicle emissions under the Smog Check Program. Includes test-and-repair, test-only, and repair-only station types. | Application Now online! | $100.00 |
| STAR Station | A certification for licensed Smog Check stations (test-and-repair or test-only) meeting high-performance standards. STAR stations can inspect all vehicles, including directed vehicles (high polluters), and test-and-repair stations may offer Consumer Assistance Program repair services. | Application | No fee |
| Vehicle Safety Systems Inspection Station | Required for ARDs licensed to inspect vehicle safety systems. This license replaced brake and lamp licenses in March 2024, in accordance with AB 471. | Application Now online! | $20.00 |
Note: Fees are subject to change. Always refer to the official BAR website for the most up-to-date fee schedule.
Application Process and Checklist
Applying for an ARD license and other station licenses is streamlined through the BAR’s online portal. To ensure a smooth application process, gather the necessary information and documentation beforehand. Here’s a checklist of common requirements:
General Information:
- Federal Employer Identification Number (FEIN)
- California Secretary of State Corporation/Limited Liability Company number (if applicable)
- Corporation Statement of Information (if applicable)
- Proof of Sale (if the application involves a change of ownership)
- Educational Certifications (relevant to automotive repair)
- Military Documentation (if applicable, for expedited processing)
- Resettlement Documentation (if applicable, for refugees, asylees, and SIV holders for expedited processing)
Permits and Licenses:
- Seller’s Permit
- City/County Business License
- Hazardous Waste Facility Permit (if applicable)
- Air Quality Management District Spray Booth Permit (if applicable)
Specific Documentation for Limited Liability Companies (LLCs):
- Domestic LLC: Articles of Organization and Charter, Statement of Information, Operating Agreement, Trust Agreement (if a member is a trust).
- Foreign LLC: Application to Register and Charter (from the state of formation), Statement of Information, Certificate Registration, Operating Agreement, Trust Agreement (if a member is a trust).
Expedited Processing for Specific Groups
BAR offers expedited license processing and fee waivers for certain applicants:
Members of the U.S. Armed Forces and their Families
Military personnel and their spouses or domestic partners may qualify for expedited licensure and license portability. Spouses or domestic partners of active duty members might also be eligible for an initial application fee waiver. Detailed information and required documentation can be found on the Resources for members of the United States Armed Forces and their families page.
Refugees, Asylees, and Holders of SIVs
Refugees, asylees, and Special Immigrant Visa (SIV) holders are also eligible for expedited licensure as per California Business and Professions Code section 135.4. For detailed requirements and necessary documentation, visit Expedited Licensure Process for Refugees, Asylees, and Holders of Special Immigrant Visas (SIVs).
Potential License Denial
While BAR aims to facilitate licensure, there are circumstances where an application might be denied. However, it’s important to understand that past criminal convictions or disciplinary actions do not automatically disqualify an applicant. BAR reviews each case individually, considering various factors to make a fair determination.
For comprehensive information on potential denial reasons, refer to Criminal Convictions, Formal Discipline, and Potential License Denial.
Requirements for Licensees
Once licensed, ARDs are responsible for adhering to certain requirements to maintain their good standing. These requirements often include displaying licenses and signs appropriately and complying with all relevant regulations and standards of practice. Detailed information on licensee obligations is available on the BAR website.
Frequently Asked Questions (FAQs)
Do I need to be registered with BAR?
Yes, if you receive compensation for repairing, altering, or diagnosing vehicle malfunctions, or if you collect payment for referred or sublet repair services, ARD registration is mandatory. Exemptions exist for businesses servicing only non-passenger vehicles, fleet owners repairing only their fleet vehicles, and specific types of machine shops.
I want to perform mobile automotive repairs. Do I need to be registered with BAR?
Yes, mobile auto repair businesses also require ARD registration. Mobile repair businesses must include the vehicle license plate number of their mobile service vehicle on their application and display specific information (business name, registration number, phone number) on online ads and their service vehicles.
Who do I contact to obtain the permits required on the automotive repair dealer application?
The table below provides contact information for agencies issuing required permits:
| Permit | Agency |
|---|---|
| Domestic or Foreign LLC Number | California Secretary of State (916) 653-6814 www.sos.ca.gov |
| Seller Permit Number | California Department of Tax and Fee Administration (800) 400-7115 www.cdtfa.ca.gov |
| Federal Employer Identification Number | Internal Revenue Service (800) 829-3676 www.irs.gov |
| Local Jurisdiction Requirements/Permits/Licenses | California Environmental Protection Agency/CalGOLD (916) 323-2514 www.calgold.ca.gov |
How do I apply for a station license?
Existing ARDs or ARD applicants can apply for station licenses by submitting the appropriate application and fees. Information on STAR certification is available on the STAR Program page.
Can I submit an application by mail instead of applying online?
While online application is recommended for faster processing, paper applications are available for automotive repair dealer, Smog Check station, and vehicle safety systems inspection station licenses.
What happens after I submit my application?
BAR reviews applications for completeness and fee payment. Complete applications are approved, and station inspections are scheduled if necessary. Deficient applications will be notified within 14 days, requiring applicants to provide missing information.
Conclusion
Navigating the licensing process for your auto repair shop in California might seem complex, but understanding the requirements and preparing thoroughly will set you up for success. By obtaining the necessary ARD registration and any additional station licenses, you ensure your business operates legally and can confidently serve your customers. Start your application online today and take the first step towards a thriving auto repair business in California.
