Learn me, lifts & business licenses

I have been a dealer tech for 18 years, and like many before me & I'm hoping some on this forum I am beginning to burn out on dealer life.  Thanks to a recent move I  know have a 30x40 heated & air conditioned shop in my back yard, that I would like to transition to.  I talked to rotary as they were easiest to get local contracts with due to my job & was surprised to hear that they only require 4" of concrete for a 10000 lbs lift install.

To me that sounds a little low, so my first question is, should I get a second opinion or trust what they say? The last thing I want it to have to go back in & repair/reinforce after an issue pops up.

My other question is, as I hope to make a business out of this, I am thinking mainly used cars at this point, would it be best to get a LLC & a business license first for tax purposes?

I'm sure I will have other questions along the way. Thank you too anyone who can help

Used cars.  What does your state require to get a dealers license and the ability to buy vehicles wholesale?   I'm in Ohio which is rather strict. 

Make sure you are zoned for a business first.

The previous owner of my house ran an HVAC business out of it, so I hope I am ok there. NC has a class that is required for a dealer license, I hope that clears up all the requirements as from what I can find online I meet all of them.

My Rotary Revolution requires 4" of concrete. I poured 6" which turned into 8" (long story). The proper Rotary and the Bendpack at work required 4" also.

My zoning specifically restricts auto repair, auto body, welding, and spray coatings. The very things I would do. I think I can't raise pigs or poultry either.

Also, a home-based business here cannot make more than 40dB of noise as measured at the property line.  I'm pretty sure I can fart louder than that.

Me I did a Google search which took all of 10 seconds to do "North Carolina used car dealer license" and came up with . . .

https://connect.ncdot.gov/business/DMV/DMV%20Documents/VS-415%20Minimum%20Dealer%20Licensing%20Requirements%20-%20June%202021.pdf 

Then you need to consider things like: zoning, local regulations, insurance, tax license, etc

My bendpak is in 4” of concrete with heavy fiber in it.

I'm sure I will run into some issues, but the initial assessment says I am good, I have the shop & a separate out building with a bathroom, the bathroom does need to be hooked to the house septic, so that is an additional expense to add into start up. 

was the fiber front just fiberglass cat hai? I just want to make sure the installer is not just concentrating on the sale & not issues down the road

I'd trust the people who engineered the lift to tell me the requirements to have a good experience with them. 

I just set up a business this year, and the process thus far has been pretty easy.   CT has a great checklist to use which walks you through all the requirements to get your CT & Fed business numbers, EIN, etc.

I'm happy to share the checklist if NC doesn't have something similar.

Caperix said:

I'm sure I will run into some issues, but the initial assessment says I am good, I have the shop & a separate out building with a bathroom, the bathroom does need to be hooked to the house septic, so that is an additional expense to add into start up. 

was the fiber front just fiberglass cat hai? I just want to make sure the installer is not just concentrating on the sale & not issues down the road

It would be unusual for you to be able to legally tie the shop bathroom into an existing house septic system.  Septic systems are usually sized for the house without extra capacity.

My understanding is that it's not just a thickness of concrete, there's a psi rating too, and that many household slabs do not meet the psi rating.  Presumably you can get the psi rating tested, but I don't know.

My brother-in-law ran a motorcycle/snowmobile repair business out of his residence for years.  It was cash and only close friends but it got out of hand.  Guys speeding away or dragging sleds off st 10pm.  

Many neighbors called in on him so he started his shop in an industrial park.  Watch what the others said.  

It's unlikely your residential zoning will permit this. 
 

 I install Rotary lifts. I did more than 50 of them last year. When you get into the fine print, you will find that your concrete does not meet the manufacturer's spec. They require 4" minimum of 3500 psi reinforced concrete, BUT the minimum anchor embedment is 4 1/2" (so 4" actually doesn't work). Most residential slabs are actually 3 1/2" of 2500 psi non-reinforced concrete. 
 

But it's not that big a deal. You can cut 2 new 4'x4' 6" thick pads in your slab in a day or two. 
 

Do it right. Your life depends on it, and you will be using it frequently. 

Oh, and if you are getting a business license, your zoning will definitely have to allow for the intended use. 
 

If you are in a residential zoned neighborhood, it doesn't allow commercial use. They can't issue a business license for that. 

Shop owners insurance will be a larger concern than zoning and a business license. Talk to a business insurance provider before doing anything. Then also do payroll, even if just for yourself, instead of taking a draw. The reason for this is evaluation when you want to make capital improvements or take out a loan for any other purposes in the business' name. 

I'll also add that you shouldn't need to build a shop to do this. It may be more convenient that way, especially if it's near your home, but most towns and cities in America have dozens of closed automotive repair facilities for sale on fairly busy thoroughfares that yes need work with regards to the building and equipment, but are already zoned for your needs and will readily attract clientele based upon location. If you start in a backyard shop, eventually if you're successful, whether it be in 2 years, 5 years or 10 years you'll move to such or building or leasing a larger commerical space (something I'm not a huge fan of as you never build equity) I recommend cutting to the chase and reducing the downtime and cost of a later move and finding an existing closed shop to purchase. 

What part of north Carolina?

Just wondering is there's a few of us here

I'm outside of Raleigh in Wake Forest

Thank you for all the additional things to look into.  I want to install the lift for myself in the shop no matter what, I guess when rotary comes out to assess they can tell me if I need to cut & pour, I was expecting to hear 6" from the start, so the chance of no concrete work surprised me.

I was thinking about fast tracking a business licence to try to be able to write off the lift as a business expense, I guess I will need to take some time off & talk to my local government first.

A bit of encouragement.  Dude did this in my town in Minnesota and now he's super busy. His lot was big and on the edge of town so it's not a big deal. 

In reply to Caperix :

I think you can claim the tax write off without a business license. 
 

IRS doesn't care if you have a license, as long as you are filing a return. 

SV reX said: If you are in a residential zoned neighborhood, it doesn't allow commercial use. They can't issue a business license for that. 

it depends where you live, in my township its very normal to have a "low impact" business. With all the amazon/delivery trucks unless there is some bug noise it wouldn't be out of the ordinary traffic which is how our permit defines it 

I'm still moving forward with this, I got the thumbs up from my local rotary dealer to install a 10000 lb 2 post lift, so that will be going in next month.  North Carolina has a wholesale level of dealer license that will let me dip my toes into it without a full commitment, so I am thinking of starting there even if the profit from selling only to dealers will likely be low.

In reply to Caperix :

IMO, if you're an experienced tech looking for a somewhat less stressful retirement business, how good are you with classic cars? Folks are always looking for shops to work on older cars a lot of regular shops don't want to touch anymore.  

Does NC have annual inspections?  Here in PA, a shop pretty much has to have a PA Inspection sign hanging out front if they have any hope of making a profit.  The shop I go to does a lot of used car dealer work and while it's steady business, they always want stuff done as cheaply as possible. 

In reply to Caperix :

Congratulations and good luck!  Keep us all updated!

NC does do state inspections, right now it requires a slow expensive dedicated machine, but the state says they are working towards an internet based system in the next few years.  

I've been a dealer tech with BMW my whole career, so by classic cars I'm not great with carburetors but I'm comfortable with any BMW built in the last 30 years.  We relocated to the Raleigh area less than a year ago, so I don't have a customer base to start with for work.  The market seams far from saturated but working on older customer cars always leads to other things breaking when trying to remove anything, some customers can be less than understanding about that.

In reply to Caperix :

I'd pick 3-5 enthusiast models that BMW produced in the last 30 years and really cater to that market. 30 year old cars are now classics and most enthusiasts understand that E36 M3 breaks on them and would love to have a technician who worked on them when they were new.

No harm in working on what comes through the door, but the most successful shops I've seen find a niche and double down on it.