What Licenses and Permits Do You Need to Operate a Gas Station?

Nate Jones, CPCU, ARM, CLCS, AU
9 hours ago
2 min read

Operating a gas station requires more than just a business plan and funding. To run legally and safely, gas station owners must obtain specific licenses and permits at federal, state, and local levels.

Understanding these requirements is critical to avoid fines, delays, or operational shutdowns.

1. Business Licenses

Every gas station needs a general business license from the city or county where it operates. This license grants legal permission to run your business and may include:

Local business registration
Proof of zoning compliance
Tax registration with local authorities

Explore: SBA – Business Licenses and Permits

2. State Fuel and Sales Tax Permits

Gas stations collect state fuel taxes and sales taxes. You must register with your state tax authority to:

Legally sell gasoline and diesel
Collect and remit sales tax for convenience store items
Submit regular tax reports

3. Environmental Permits

Because gas stations handle hazardous materials, environmental compliance is mandatory:

Underground Storage Tank (UST) Permits: Required for tanks storing gasoline or diesel
Spill Prevention, Control, and Countermeasure (SPCC) Plans: Required if fuel storage exceeds federal thresholds
Compliance inspections for fuel leaks or soil contamination

4. Health and Safety Permits

Gas stations must meet local health and safety regulations, including:

Fire safety permits and inspections
OSHA compliance for staff safety
Food service permits if selling prepared food in the convenience store

Explore: OSHA – Retail and Gas Station Safety

5. Signage and Zoning Permits

Many municipalities regulate signage, lighting, and property use. Gas station owners may need:

Sign permits for branding and promotions
Zoning approval to operate a commercial gas station
Compliance with local building codes

6. Alcohol and Tobacco Licenses (Optional)

If your gas station sells alcohol or tobacco products, additional licenses are required:

State and local tobacco retail licenses
Alcohol permits from state liquor control boards

7. Protect Your Gas Station with Insurance

Even with all permits in place, operating a gas station involves risks: accidents, spills, or property damage can occur. Protect your investment with comprehensive insurance coverage from Wexford Insurance, including:

Request a quote from Wexford Insurance today to keep your gas station fully protected.

Final Thoughts

Operating a gas station legally requires careful attention to licenses, permits, and compliance regulations. From general business licenses and tax permits to environmental and safety approvals, each step ensures your business can operate without legal interruptions.

Additionally, insurance is a vital tool to protect your investment from unexpected events. Wexford Insurance specializes in gas station coverage giving you peace of mind so you can focus on running a profitable business.

Contact us today.