How to Open a Gas Station

Start a gas station by following these 10 steps:

1. Plan your Gas Station
2. Form your Gas Station into a Legal Entity
3. Register your Gas Station for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Gas Station
6. Get the Necessary Permits & Licenses for your Gas Station
7. Get Gas Station Insurance
8. Define your Gas Station Brand
9. Create your Gas Station Website
10. Set up your Business Phone System

我们汇集了这个简单的指南开始your gas station. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out othersmall business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit ourHow to Name a Businessguide or get help brainstorming a name with ourGas Station Name Generator

If you operate asole proprietorship, you might want to operate under a business name other than your own name. Visit ourDBAguide to learn more.

Whenregistering a business name, we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability.

It's very important to secure your domain name before someone else does.

What are the costs involved in opening a gas station?

打开气圣相关的启动成本ation business are substantial. According toJUX Law Firm, business owners should expect to spend around $300,000, which breaks down as follows:

• $2,000 for legal fees
• $2,000 for insurance premiums
• $3,000 for state permits
• $5,000 for promotional signage
• $10,000 for initial inventory
• $20,000 for setting up a convenience store
• $100,00 for setting up the gas station
• $150,000 for purchasing a building

Depending on the location of a gas station and what buildout is involved, the startup costs for a particular station may be more or less. In some cases, the startup expenses can be much more than noted here.

What are the ongoing expenses for a gas station?

The ongoing expenses for gas station businesses are high. Gas stations must pay for the fuel they sell, which alone often runs over $1 million annual for many stations. They must also purchase other products that are sold, and pay employees’ wages, utilities, taxes and permit fees.

Who is the target market?

A gas station business’ ideal customer is either a family that’s traveling or a long-haul truck driver. Traveling families won’t purchase a lot of fuel, but they’ll frequently get snacks or beverages for everyone in the family. Long-haul truck drivers will also frequently purchase some food or a beverage, and they’ll also often spend hundreds of dollars filling up their truck’s tank.

While these are ideal customers, gas station business owners aren’t picky about whom they serve. Anyone who comes into a gas station is a likely customer and will probably spend at least a few dollars on an item.

How does a gas station make money?

A gas station business makes money by selling products to drivers and passengers. Stations are named for their primary product: gasoline. This is just one of many products that gas stations sell though. Most gas stations also offer:

• Pre-made food (e.g. pizza and hot dogs)
• Beverages (e.g. such as coffees, teas and sodas)
• Snacks (e.g. ice cream, candy and chips)
• Grocery staples (e.g. milk, bread and eggs)
• Basic automotive supplies (e.g. windshield washer fluid and tire pressure gauges)
• Beer and wine (if permitted by law)
• Tobacco products and lottery tickets

How much can you charge customers?

The price of gasoline fluctuates on a daily basis, but most gasoline station businesses don’t try to make a lot on the fuel they sell. Instead, they use low fuel prices to attract drivers -- and then sell other products that have higher markups. Most gasoline stations have many pre-made foods, snacks, beverages and convenience items available for less than $5. Each sale may be small, but lots of sales over the course of a day can generate a significant revenue.

How much profit can a gas station make?

Gas stations can generate millions of dollars in revenue, but much of this is often consumed by ongoing expenses. In an example that JUX Law Firm provides, a gas station that earns $2.4 million annually might have ongoing expenses of $2.1 million, and that doesn’t take into account all the salaries and some other fees the gas station must pay. According toThe Nest, gas station owners make around $70,000 each year. (Profits may increase once a station’s loan is paid off.)

How can you make your business more profitable?

Gas stations can add revenue streams and increase their profit margins by incorporating sideline businesses. Car washes, auto shops and restaurants are popular side businesses to add.

STEP 2: Form a legal entity

The most commonbusiness structuretypes are thesole proprietorship,partnership,118bet金博宝 , andcorporation.

Establishing a legal business entity such as anLLCorcorporationprotects you from being held personally liable if your gas station is sued.

You can金宝搏188是什么公司yourself and pay only the minimal stateLLC costsor hire one of the118金宝app for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more aboutstate sales taxand franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to aspiercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting abusiness credit cardhelps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with ourLLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a gas station. Learn more about licensing requirements in your state by visitingSBA’s reference to state licenses and permits.

Certificate of Occupancy

A gas station is usually run out of a storefront. Businesses operating out of a physical location typically require aCertificate of Occupancy(CO). A CO confirms that all building codes, zoning laws and government regulations have been met.

• If you plan to lease office space:
• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a gas station.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening,it is recommendedto include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.

• If you plan to purchase or build office space:
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for you business’ location to ensure your gas station will be in compliance and able to obtain a CO.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully.Business Insuranceprotects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face,begin withGeneral Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need isWorkers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

人都有商业头脑,我喜欢nteracting with people may be well-suited for running a gas station business. Understanding how to operate a business will help ensure that a gas station is run efficiently, and it helps to be a people person because gas stations often serve hundreds of customers in a single day.

What happens during a typical day at a gas station?

On a day-to-day basis, a gas station business owner or their employees will need to:

• Accept shipments
• Restock inventory
• Prepare pre-made food and drinks (if offered)
• Ring up sales for customers
• Clean the gas station (e.g. empty trashes and clean the restrooms)

When not working on these tasks, business owners must also schedule and manage employees, place orders for products and pay bills.

What are some skills and experiences that will help you build a successful gas station?

Running a gas station business requires knowledge of many different aspects of business. Business owners must identify and source products that customers will want to purchase, hire and manage employees, place service orders when equipment malfunctions, and follow permitting laws in their area.

Business owners may want to take some business classes before opening a gas station, or they might want to work as a manager for another gas station first. Joining professional organizations, such asThe Association for Convenience & Fuel Retailing, can also help business owners learn about the industry.

What is the growth potential for a gas station?

A gas station business owner may operate a single gas station, or they may have several in a region. Owners who have one station can operate as an independent business or a franchise, while those who have multiple stations in a region often elect to get franchises.Pronto Food Martin Austin, Texas is an example of an independent station.Chevronis one gas company that has franchises available around the country.