Guidance on business or ownership changes
Businesses that service, repair, modify, or diagnose issues with motor vehicles are required to register with the Bureau of Automotive Repair (BAR) as an automotive repair dealer (ARD). This also applies to businesses that collect payment for automotive repairs and other related services and then refer or subcontract the work to others outside the business or its employees. Businesses that offer Smog Check or vehicle safety systems inspections must also apply for a station license.
If there are any changes to a business—such as a change in structure, name, location, or contact information—it is the ARD’s responsibility to notify BAR and update their registration and licenses accordingly.
One of the most common inquiries BAR receives is about ownership changes. In most cases, if a business changes ownership, the owner(s) must apply for a new license(s) and pay the required fee(s). The business cannot operate until BAR issues the new license(s). Following are answers to frequently asked questions about business ownership changes.
Sole proprietorships and partnerships
I registered my business as a sole proprietorship and now I want to change my business structure to a corporation or limited liability company (LLC). Can I keep the same license number(s)?
No. If you are changing your business structure from sole proprietorship to a corporation or LLC, you must apply for a new ARD registration and license(s) and pay the required fee(s). This is considered an ownership change, even if the principal individual or responsible managing employee who manages the daily operations of the business remains the same.
I registered my business as a sole proprietorship and now I want to pass it on to a family member. Can they simply take over my business?
No. A new owner—even a family member— taking over a sole proprietorship must apply for a new ARD registration and license(s) and pay the required fee(s).
I registered my business as a partnership and now I want to remove a partner. Can I simply amend the list of partners?
No. If you are changing the original list of partners in the partnership, such as adding or removing a partner, you must apply for a new ARD registration and license(s) and pay the required fee(s).
Corporations and LLCs
I registered my business as a corporation and now I am selling it. The new officers will continue to operate the business as the same corporation using the same corporation number. Do they need a new ARD registration and license(s)?
No. If the business remains the same corporation and operates under the same corporate number filed with the California Secretary of State’s office, the new officers do not need to apply for a new ARD registration and license(s). However, the new officers must update the Statement of Information form with the California Secretary of State’s office. They must also update the controlling individuals with BAR.
I registered my business as a corporation and now I am selling the business. The new ownership entity will operate the business as a different corporation. Do they need to apply for a new ARD registration and license(s)?
Yes. If the ownership entity changes and a new corporate number is issued by the California Secretary of State’s office, the new corporate officers must apply for a new ARD registration and license(s) and pay the required fee(s).
I registered my business as an LLC and now I am selling it. The new ownership entity will continue to operate the business as the same LLC number, but the members have changed. Do they need to apply for a new ARD registration and license(s)?
It depends. You will need to check the LLC’s original operating agreement submitted to BAR with the initial application. If the original operating agreement of the LLC allows for member changes, the LLC manager, member, or officer with designated signing authority must update the controlling individuals with BAR after the new members have filed an update with the California Secretary of State’s office.
If the LLC’s original operating agreement does not allow member changes, the LLC and all new members must apply for a new ARD registration and license(s) and pay the required fee(s).
Other business updates
In addition to ownership changes, ARDs must notify BAR within 30 days of changes to:
- Business name, address (physical and mailing), phone number, or email
- Service type
- Vehicle license plate number (for mobile automotive repair dealers)
- Educational certifications
- Controlling individuals
If an ARD that also is licensed as a Smog Check and/or Vehicle Safety Systems Inspection station moves to a new address, BAR must inspect the station at the new location. Vehicle inspections under either of the two programs cannot resume until the station passes the BAR inspection and updated licenses reflecting the new address are issued.
Need help updating your business information or have questions?
Visit BAR’s Automotive repair business licenses or email BAR’s Licensing Program at BARLicensing@dca.ca.gov.