ANSWERED: Do Cell Phone Repair Shops Need an Electronic Repair License?

If you have great customer service skills and a knack for tinkering with electronics, you may have what it takes to start a successful cell phone repair business. But is that enough to get started?

There are other things to consider. For example, do cell phone repair shops need an electronic repair license to operate legally? Are there advantages to having a repair certification? 

In this article, we answer your questions about repair licenses for cell phone stores and provide tips for successfully starting your repair business.

Do Cell Phone Repair Stores Need an Electronic Repair License?

In the majority of states, cell phone repair shops do not need a special license to do cell phone or electronics repairs. Many states are also expanding their right-to-repair legislation to include digital devices.

There are exceptions. For example, in California, you’re required to get a license with the Bureau of Household Goods and Services to repair smartphones and appliances. However, the state of right-to-repair laws and licensing is evolving (and can be confusing), so we recommend contacting your local Small Business Administration to double check. 

While a repair license might not be required to run your business, it might not be a bad idea to get one. Having something like a computer repair technician certification can help you build credibility with customers and stand out from competitors.

What Do Cell Phone Repair Shops Need To Legally Operate?

While many states don’t require any special certifications or requirements to run a cell phone repair shop, you’ll still need several things to stay legally compliant.

• General business license: A license to legally operate as a business in your state.
• Sales tax permit: Required if you sell parts, accessories, or devices.
• Business structure and EIN: You’ll set up a business structure, such as a Limited Liability Company (LLC) to do business under. An Employee Identification Number (EIN) is a number you’ll request from the IRS to file taxes. 
• Business insurance (optional): Insurance to cover property damage, theft, and loss. While not required, cell phone stores carry high-value items. Workers’ compensation is also required if you have employees.

The process of obtaining all of these varies by state, but your general business license and LLC application are typically done through the Secretary of State’s office. Once you have your business entity set up, you can apply for an EIN through the IRS. 

Other Advice for Starting a Successful Cell Phone Repair Business

Having the right licenses is only a small part of starting a successful cell phone repair business. Here are a few more tips to ensure your business stays efficient and keeps customers happy.

• Leverage repair ticketing software: Don’t rely on manual processes to track your repairs and inventory. Use a point of sale (POS) system with built-in repair ticketing to monitor repair status, send out status notifications, and more. 
• Don’t ignore marketing: An effective marketing strategy is essential for building your brand and attracting new customers. After all, having technical know-how won’t help you if no one knows you exist. 
• Use inventory management software: As a repair shop owner, you’ll have to keep track of product warranties, manage spare parts, track IMEI numbers, and more. Inventory management software ensures you have visibility on your high-value stock at all times.
• Focus on customer service: Reviews and word of mouth are essential for a small business to grow. Make sure you adopt consistent processes for client communication and repair management to deliver a great experience every time. 
• Expand your offerings: To make sure your business maintains healthy cash flow, expand your services beyond cell phone repair alone. You could repair other types of devices, sell accessories, or even offer repair courses.

Most importantly, embrace change. Electronics are changing constantly. To make sure your business stays successful for many years to come, build a flexible business model that allows you to adapt as the technological landscape evolves.

Give Your Cell Phone Repair Business a Strong Start With a Best-in-Class Technology Partner

Do cell phone shops need an electronic repair license to be successful? Not necessarily. However, if you’re thinking about getting one, consider these points:

• Does your state have any specific instructions around repair?
• Would getting a repair license help upskill yourself or your employees?
• Would getting a repair license help build credibility with your customers?

Regardless of whether or not you decide to get an electronics repair license or certificate, remember: exceptional customer service is a must.

That’s why independent cell phone stores and repair shops trust CellSmart POS to boost repair efficiency, manage inventory, and improve the customer experience.

Schedule a free demo today to learn how CellSmart POS can set your cell phone repair business up for success.