How to Start a Car Wash Business?

A car wash business can be rewarding and profitable as nearly 66% of car owners living in the U.S use car wash service every month, once or twice. 

When it comes to deciding which business we should invest in? Small business owners also need advice on business formation services,  the cost of running the business, writing a business plan, choosing the company’s location, and much more.

Small businesses require substantial advice while running their new business at startup and in the running phases of business as well. is an authority to provide you with advice on your business startup services. It guides you over where to invest; the cheapest LLC formation services offer you business name generator services and hot news on business. It is a reputable source of information in business, loans, banking, and trading.

We may divide the car wash business into the following steps:

Step 1: Plan your Car Wash Business

There are certain considerations you need to take care of when starting a car wash business:


The most important thing to consider while planning a car wash business is the cost associated with starting the business. The cost associated with the car wash business depends upon the level you want to operate. A person having a few hundred dollars in hand can start a car wash business if he chooses Hand Car Washing.

However, in Self-Service Car Wash, you need a more significant investment of up to $200,000. It requires special equipment for Self-Service Car Wash, Car Wash Shed Building, Lease Payment & Deposits and Signage.

Car detailing is an enhanced service. The cost of car detailing service is the same as hand car washing except for the detailing you offer in services. You need to purchase more supplies and more helpers.

Automatic Car Wash requires a substantial investment of up to $500,000 because of Automatic Car equipment, Car Wash Building Construction, Lease Payment, Deposits, and Signage.

Touchless Washing is the most costly car washing service because it uses Touchless Car Washing Equipment. In addition, it requires Car Wash Building Construction and Lease Payment and Deposits and Signage. Therefore, the cost touches $ 1000,000.


The car wash business’s expenses depend entirely on the number of car wash customers visiting your facility and the type of car washing service you offer. It varies from $100 for every 50 customers visited on Hand Car Washing to $50,000 for Automatic and Touchless Car Wash.


The price for Hand Car Washing is about $7, and it goes to $18 for Touchless Car Wash.

Step 2: Form a Legal Entity for Your Car Wash Business

It is essential to know that establishing a legal entity of your business is vital as it protects your personal assets in case of business liquidation.

You can hire the best and cheapest LLC formation services for your car washing business. The information is available on one of the best sources, BizReport, which recommends business services, loaning, banking, and what you need to know when you start your own business. 

You can form an LLC by yourself or hire the best LLC services at a minimal fee. However, it is essential to consider that LLC formation services also offer the services of a registered agent. Therefore, the LLC formation services usually include the fee of registered agents in their package. 

Step 3: Register Your Car Business for Taxes and Apply EIN

Your newly established LLC car wash business now needs to be registered for several types of state and federal taxes. But before applying for business taxation, you need to first apply for an Employer Identification Number (EIN). The IRS website offers free EIN for new businesses.

Step 4: Open Your Car Wash Business Bank Account &  Apply for Credit Card

The new business needs to open up a business bank account to protect their personal assets. It also makes it easy to report business transactions and taxation. In addition, business credit cards help you develop a business’s credit history and raise money and funds later.

Step 5: Obtain Necessary Permits and Licenses for Car Wash

Obtaining necessary permits and licenses is the lifelines required for your new business as failure to acquire permits and licenses results in a business shutdown.

Step 6: Get Car Wash Business Insurance 

Getting business insurance for your car wash business is essential as it protects the financial wellbeing of your business in the event of a covered loss