Start a Texas Tire Shop: Step‑by‑Step 2025 Guide

Thinking about opening a tire shop in Texas? You're in the right. With millions of drivers on Texas roads and a steady demand for tire replacement and repair services, this business can offer stable income and long-term growth.

Whether you're in Houston, Dallas, or a smaller town, opening a tire shop is a smart move if done right. From licenses and location to equipment and startup costs, there are key steps you’ll need to follow.

In this guide, we’ll walk you through exactly how to start a tire shop in Texas, using real examples and tips that apply nationwide. Let’s get rolling.

Why Start a Tire Business in Texas?

Texas is one of the largest vehicle markets in the U.S., with more than 22 million registered vehicles. That’s a lot of tires, and a lot of opportunities for repair, replacement, and maintenance services.

Steady Demand for Tire Services

Drivers need tire services year-round: blowouts, worn tread, seasonal changes, and general maintenance keep demand consistent. Combine that with Texas's hot climate and long commutes, and tire wear becomes even more frequent.

Are Tire Shops Profitable?

Yes, when managed properly. A small tire shop can generate anywhere from $5,000 to $20,000+ per month in profit depending on location, pricing, and service volume. Profit margins on new tires and basic repairs are often between 25% and 50%.

How Much Does a Tire Shop Make a Month?

A mid-sized tire shop in a busy Texas city can make upwards of $100,000 in monthly revenue, especially if they offer additional services like alignments, brakes, or oil changes. Profit depends on labor efficiency, overhead costs, and upsells.

With the right plan and location, you can build a profitable business that serves a steady stream of local customers.

Step-by-Step: How to Start a Tire Shop in Texas

Let’s walk through the essential steps to get your tire shop up and running, with a focus on Texas, but relevant to other U.S. states too.

Step 1: Create a Tire Shop Business Plan

Every successful shop starts with a strong tire shop business plan. Outline your goals, services (e.g., tire sales, balancing, patching), pricing strategy, and projected income. Be sure to research your competitors and define what makes your shop different.

Include in your plan:

• Startup costs
• Target customer base
• Marketing plan
• Revenue projections

Step 2: Register Your Business & Get a License

To start a tire business in Texas, you’ll need to form a legal business entity ( and register your name with the state. You’ll also need to apply for a sales tax permit and any local permits.

If you're planning to offer mechanical services beyond tires, apply for an auto repair shop license in Texas if required by your city. These steps fall under Texas tire shop license requirements, which vary slightly by location.

Helpful resource: Texas Business Licenses & Permits Guide

Step 3: Understand Texas Auto Repair Regulations

Before you open, make sure you comply with Texas auto repair regulations, especially for tire storage and disposal.

If your shop handles used tires or waste oil, you may need to:

• Register with the Texas Commission on Environmental Quality (TCEQ)
• Follow OSHA safety rules for lifts, compressed air, and chemical handling

Always check with your local city or county office for updated compliance requirements.

Step 4: Plan Your Tire Store Setup

Your tire store setup should be clean, organized, and optimized for workflow. Whether leasing or buying, choose a location with:

• High visibility and traffic
• Enough space for lifts, storage, and customer parking
• Proper zoning for automotive repair

Step 5: Buy Essential Tire Shop Equipment

Quality tire shop equipment improves service speed and safety. At a minimum, you’ll need:

• Tire changer and wheel balancer
• Air compressor
• Car lift (2-post or 4-post)
• Tire racks and storage
• Basic hand tools (wrenches, torque sticks, sealant)

A good setup increases efficiency and enhances customer experience.

Step 6: Estimate Tire Shop Startup Costs

Tire shop startup costs vary by location and size. On average, expect to spend:

• $25,000–$75,000 for a small to mid-size shop
• $100,000+ if adding multiple lifts, diagnostic tools, or expanding services

Break down your costs into:

• Tire repair tools and equipments
• Lease or property
• Permits and insurance
• Marketing and signage
• Inventory (tires and supplies)

Tips to Run and Grow a Profitable Tire Shop

Starting strong is important, but staying profitable is what counts. Once your tire shop is up and running, these tips will help you operate efficiently and grow your customer base.

Focus on Fast, Reliable Service

Tire customers usually want quick turnarounds. Minimize wait times by setting up a smooth workflow and training your team well. Keep commonly used tire sizes in stock and use appointment scheduling to reduce chaos.

Upsell Smartly

Don’t just sell tires, offer add-ons like:

• Wheel alignment
• Tire rotation and balancing
• Brake inspections
• Seasonal tire swaps

These small upsells can significantly increase average ticket value without much added time.

Use a Garage Management System

A garage management system helps you run your shop like a professional. With autoGMS, you can:

• Schedule jobs and manage appointments
• Track inventory and tire usage
• Generate fast invoices and repair orders
• Keep customer records and service history

Automation saves time, reduces errors, and improves customer service all which lead to higher profits.

Conclusion

If you’ve been wondering how to start a tire shop in Texas, now you have a clear roadmap. From building a business plan and getting licensed to setting up your store and buying the right equipment, every step counts.

While this guide focuses on Texas, these steps apply in most U.S. states with a few local tweaks. Whether you're opening in Houston or planning a mobile setup in Dallas, success comes down to smart planning, great customer service, and efficient operations.

Do you want to run your tire shop efficiently? Try autoGMS, your all-in-one garage management system to book jobs, manage tires, and grow your business.