How to start an appliance repair business

Pick the appliances and brands you know and grow from there. Warranty service for manufacturers is another lane, with their own sign-up rules.

Some states license appliance repair or service contractors, and many cities ask for a business license. Connecting gas lines or doing electrical work beyond the appliance can need a plumbing, gas or electrical license. Ask your state licensing board and your city.

The EPA says its Section 608 rules require technicians who maintain, service, repair or dispose of equipment that could release ozone-depleting refrigerants to be certified. The test has a core section plus Type 1 for small appliances, Type 2 for high-pressure and Type 3 for low-pressure equipment. Household refrigerators and freezers are the small appliances Type 1 covers. The EPA does not issue cards itself; approved certifying organizations do.

The SBA lists the launch steps in this order: pick a location, choose a structure, choose a name, register, get federal and state tax ID numbers, apply for licenses and permits, open a business bank account, and get insurance. For a appliance repair business working out of a truck, the location is usually your home address and the area you will serve.

• Structure. A sole proprietorship is the simplest. An LLC keeps the business separate on paper. Ask an accountant which fits your state and your plans.
• Tax ID. The IRS gives out an employer identification number (EIN) online, and says you never have to pay a fee for one. Websites that charge for an EIN are not the IRS.
• Self-employment tax. The IRS lists the self-employment tax rate as 15.3%: 12.4% for Social Security and 2.9% for Medicare. Income tax comes on top, so set money aside from every job.
• Bank account. Open it before the first payment lands, so every dollar in and out is easy to find at tax time.

Your name goes on the truck, the invoices, the Google profile and the yard signs, so pick it once. The free appliance repair name generator gives 36 ideas for your town and style, each with a domain idea, and lists the checks to run before you commit: your state's business name search, a federal trademark search and the domain itself.

The SBA describes general liability insurance as cover for financial loss from bodily injury, property damage, medical expenses and defending lawsuits. It says businesses with employees are required to carry workers' compensation, unemployment and disability insurance, and some states ask for more.

Water leaks after a dishwasher repair and damaged floors from moving appliances are the usual claims. Ask your agent about general liability including completed work, commercial auto and tools cover.

No total here on purpose. What you spend depends on what you already own, new or used, and how much work you plan to take on. Price your own list with a local supplier, then put the numbers in the startup cost table of the free business plan generator, which adds them up for you.

• A van with parts shelving
• A multimeter, clamp meter and hand tools including nut drivers and Torx bits
• An appliance dolly and floor protection
• Refrigerant recovery equipment if you do sealed system work
• A starting stock of common parts for the brands you service
• A phone or tablet with access to service manuals and parts lookups

Parts stock is the swing: too little means second trips, too much ties up cash. Stock the parts that fail most on the brands you see most.

Charge a diagnostic fee for the first visit and credit it to the repair if the customer goes ahead. Price repairs as labor plus parts with markup, or as flat prices per repair once you know your times. The free labor rate calculator sets your hourly cost and the markup calculator sets parts prices. Tell the customer before you go that the fee is due even if they decide not to repair.

• Answer every call. A broken fridge is urgent. Koira answers on your number and books by text.
• Property managers and landlords. Rentals have many appliances and little patience.
• Google and reviews. List the brands you fix.
• Your past customers. Koira texts them about dryer vent cleaning and maintenance.

Take payment for the diagnostic on the first visit and the repair on the second, with pay at the door. Invoices go out when you finish, and Koira asks for the review.

Add a second tech once you have more calls than slots, and keep parts on both vans for your top repairs.