Author Archives: Josh Meah

About Josh Meah

Josh is the CEO of DrivingSchool.Marketing. His goal is to be the marketing and business development partner of driving schools around the world, helping them become thriving businesses while also expanding general awareness for the importance of traffic safety standards and education.

How to Start a Driving School in North Dakota: A Step-by-Step Guide

Here you’ll learn everything you need to start your Driving School in North Dakota

Compared to many states, North Dakota makes it relatively easy to establish a driving school. You still need to complete forms, and meet requirements, but the state seems to be driving-school friendly.

North Dakota driver training schools may offer classroom instruction, behind-the-wheel training, or both. Schools which offer a 30-hour classroom instruction and 6-hour behind-the-wheel course may issue a Certificate of Course Completion, which

How to open your driving school in North Dakota

North Dakota’s regulatory burden on driver training schools is very light, and consistent with running a good school.
Both the school and instructors need to be licensed.
You may use most any location for your school.
You must maintain records for and contracts with all students.
You do not have to offer classroom instruction, but if you do offer a full 30/6 classroom/behind-the-wheel course, your students who pass will not need to take the road test.

Driving School Licensing and Requirements

General requirements

To operate a driving school in North Dakota, you will need to be licensed by the state. Licenses are valid for one year, and expires on the last day of the year.

Your application package includes the application form which asks for the following information:

Names of owners and operators
School location
Curriculums offered
Vehicles to be used
Copy of the lease/rental agreement for your premises, or proof or ownership.
Your schedule of fees.
A surety bond in the amount of $5,000

The current regulations for Driver Training Schools are straightforward and clear. Driving school instructors and owners should know and comply with them–they allow a wide range of operation but, since it’s North Dakota, they are probably strictly enforced.

North Dakota requires the following minimum liability insurance coverage:

$100,000 bodily injury to one person
$300,000 bodily injury to more than one person
$30,000 personal injury protection–medical expenses, primarily
Uninsured motorist bodily injury insurance
$25,000 property damage

If you have employees, you must carry workers’ compensation insurance covering them–and potentially you–in the event of injury while on the job. You should, of course, consider higher coverages and/or an umbrella policy to cover your operations.

Driving School Owner’s License

North Dakota places few personal requirements on owners of driving schools. The main bar would be conviction for a number of crimes involving fraudulent behavior or moral turpitude.

Driving Instructor’s License

While no specific requirements are set for driving school owners, instructors must demonstrate qualification before they receive a license from North Dakota. Submit the application form and the $25 fee. Instructors must meet the following qualifications.

Be at least 21 years old, read and speak English, and have normal vision.
Have at least 3 years’ driving experience in the license class you will be teaching.
Not have a suspended or revoked license.
Pass the criminal background check.

In addition, all instructors must pass a written and road test for each class of license you expect to teach.

Instructor licenses must be renewed annually.

Location

You are generally free to establish your business anywhere you see fit–meeting the requirements outlined below. You can choose to have classroom space, or you may conduct classroom driver education at off-site locations, including local public or private schools. Your contract with the school or other location should be included in your license application.

Your school may not operate out of a temporary building or hotel/motel room. You must have adequate facilities for the services you offer.

Your office space must meet local and state building requirements, and it must be accessible to the public during your regular business hours. It must be accessible to persons with disabilities.

Your school license must be posted conspicuously.

Records must be maintained at your main business office.

Classroom facilities must be in a building suitable for instruction. Compliance with local and state sanitation requirements is expected. The classroom must be equipped with suitable desks, tables, chairs and other items appropriate to the setting.

Your school name cannot be substantially similar to that of another driving school, and you may not use the words “State”, “Government”, “Municipal”, “City”, or “County” in the school name, and you must use your school’s name only in advertising and publicity.

Don’t ever give a student or parent the impression that your instruction guarantees receiving a driver’s license–you may mention your pass rate.

Vehicles

Your vehicles need to have dual controls for the brakes as well as an instructor rearview mirror. They must have passed the most recent North Dakota safety and emissions inspections. No training vehicle may be more than 10 model years old.

Signs saying “Student Driver” must be visible to the front and year. Lettering must be between 2” and 5” high.

Records and Contracts

You will need to keep records of all students and instruction. The regulations do not specify the number of years, but contracts must be held for three years–you should hold the records for the same period of time.

Your student records should reflect:

The student’s name, address, and date of birth
The contract number
The dates and types of lessons
The instructor names and numbers
Student identification number

Records must be available for inspection during business hours.

Your contract form must be approved by the state before you use it. The contract must include:

The student’s name, address, and date of birth.
The kind of training provided under the contract
The number of hours and rate per hour.
The date and signature of student and parents, as well as the school’s authorized person.

Contracts may not provide for more than 10 hours of behind-the-wheel training without a new contract being executed.

You must let the Department of Transportation know who your authorized representatives are.

The Driving School Curriculum in North Dakota

A North Dakota driver training school does not have to offer classroom instruction–it may focus on behind-the-wheel instruction only.

If you offer the 30 hour classroom/6-hour behind-the-wheel may offer certificates of course completion, which waives the testing requirement for students seeking their driver’s license.

Students may take no more than six hours of classroom instruction per day.
You must offer at least a fifteen minute break after 2 hours of instruction, but that break time never counts as instructional time.
You may offer no more than one on-road session per day, and the maximum length of the on-road session is two hours.
If a student has both classroom and on-road instruction on a given day, the total may not exceed 6 hours.

The topics to be covered in your 30/6 hour classroom/behind the wheel course are outlined in the regulations. Simulation use may not be exchanged for any hours of behind-the-wheel instruction.

Your behind-the-wheel instruction may not be conducted on routes used for the state road tests.

Commercial Driver’s License Instruction

Contracts for CDL training may not provide for more than 120 hours of behind-the-wheel training.

CDL training is expected to last for at least 120 hours in a combination of classroom and behind-the-wheel instruction. Simulators may be exchanged for hours of BTW training after a student has 100 hours behind-the-wheel.

Providing instruction for students pursuing a CDL in North Dakota otherwise follows those for the regular driver’s license.

Starting a Small Business in North Dakota

Your driving school is not just subject to the requirements for driver’s education in North Dakota. You also need to establish your Driving School as a small business, and have to consider a number of factors. The form of business you take up, as well as the procedures, are appropriate topics of conversation with your lawyer and accountant. The considerations we offer here are not legal advice, but should provide you with things to think about as you set up your business.

Business Registration

All businesses need to register in North Dakota, especially the business name—the “doing business as” certificate. Banks may not be willing to set up your account until you have that DBA form. We’ll include where to register in the business structures below.

You will also need to obtain a Federal Employer Identification Number. Banks may need it for your business accounts, and you may be wanting to employ people. To obtain an EIN, go to the IRS website and complete the application form you find linked there.

North Dakota details the process on the Secretary of State’s site.

Business name

Before you get going, you’ll want to check to see if the business name you want is in fact available in North Dakota. You can search the North Dakota database, as well as visit the office of the county recorder.

Once you know your business name is available, you can reserve it with the Secretary of the Commonwealth’s office.

Sole Proprietorship

Owning your own business is the easiest one to set up, but also may open you to liability concerns. As a sole proprietor, your business is simply part of your life. You keep a separate set of books, and complete a Schedule C for your 1040 form every April.

Sole proprietorships can expose the proprietor for full liability, even with insurance. That may mean that if you are sued, you may lose your home and property, as well as your personal bank accounts and other assets. This risk may not be worth the ease and independence.

In North Dakota, the big step you have to take is to register your Assumed Business Name with the county or town clerk in which you have a place of business.

Corporations and LLCs

You may set up a full corporation (“Inc.”) as your business structure. Corporations limit your liability for loss to your investment in it, as a general rule (although banks may require you to be obligated personally if you take out a loan to get your business going). This form of business keeps your personal assets safe.

As an owner of a corporation, you’ll have to set up your driving school consistently with the rules for corporations in North Dakota. You’ll also have to decide whether to be an S Corporation or a C Corporation. Generally, the S Corporation form is set up for small businesses. It allows income and taxes to pass through to the owners. You will want to discuss these forms with your attorney and accountant.

You may be able to set your driving school up as an LLC in North Dakota. The LLC form provides the same limited liability as a Corporation, but do not have to comply with the corporate formalities most states require, including items like bylaws, required stockholder meetings, and minutes (although minutes of meetings are probably a good idea).

You’ll have to discuss the advantages and disadvantages for the LLC with your attorney and accountant.

Both Corporations and LLCs file with the Secretary of State. In addition to name reservation, you’ll need to file with the Secretary of State.

Now What Do I Do?

Once you’ve complied with all the legal requirements to be both a driving school and a small business in North Dakota, you need to get students.

Getting students requires marketing—largely on the internet. You will need the following systems set up to obtain students:

A website—focused on the types of students you want to attract, and aimed at your locality.
The website should also include a blog, which allows you write about a variety topics and engage in Search Engine Optimization—which will drive traffic to your site.
A Facebook page, linked to your website, to become noticed and drive traffic.
Getting testimonials from successful students.

Marketing is something you will have to devote time to. DrivingSchool.Marketing can help you get the best bang for your marketing buck.

Conclusion

Disclaimer: This page is part of DrivingSchool.Marketing’s series of state and provincial pages designed to help entrepreneurs like you start driving schools. States change their regulations, or the web pages they host their forms. While we believe these rules are accurate as of the date of publication, we cannot guarantee full accuracy. Please let us know if you spot any problems.

How to Start a Driving School in Maryland: A Step-by-Step Guide

Here you’ll learn everything you need to start your Driving School in Maryland

Compared to many states, Maryland makes it relatively easy to establish a driving school. You still need to complete forms, and meet requirements, but the state seems to be driving-school friendly.

Maryland driving schools MUST offer classroom, on-road, and the required parental class in order to be licensed.

How to open your driving school in Maryland

Driving School Licensing and Requirements

General requirements

To operate a driving school in Maryland, you will need to be licensed by the state. Licenses are valid for two years from date of issue; applications must be received at least 2 weeks before the expiration date. You must submit a completed application packet which includes the application form and the following required documents:

A completed fire inspection form
Zoning and other local approvals for both the business office and classroom space
Authorization for a criminal background check
Certificate of liability insurance
Surety bond information–the bond needs to be in the amount of $40,000
Vehicle information
You must also provide
A list of instructors as well as a copy of the curriculum
Proof of Workers’ Compensation insurance
Instructor’s applications.
Incorporation documents
Vehicle inspection documents

If you rent space in a public school for your classroom portion, you must complete a special form.

The current regulations for Drivers’ Schools and the Driver Education Program are a bit repetitive. A driving school does not offer the full 30-hour/6-hour Driver Education Program, which requires certification. You may apply for licensing and certification simultaneously.

Maryland requires the following minimum insurance coverages:

$1,000,000 in general liability
$500,000 combined single limit for automobile liability (on each vehicle)
$100,000 for damage to rental premises
$10,000 medical expenses
$1,000,000 personal injury
$2,000,000 general aggregate insurance

You must carry workers’ compensation insurance covering them-, even if you’re the only one working at the school, in the event of injury while on the job. You should, of course, consider higher coverages and/or an umbrella policy to cover your operations.

You must contact the MVA Driver Instructional Services Division for the certification packet. It is not available online.

Driving School Owner’s License

Maryland places few personal requirements on owners of driving schools. The main bar would be conviction for a number of crimes involving fraudulent behavior or moral turpitude.

The owner(s) must be at least 21 years old.

You may not operate without a license for your program, and it is expected that your program of instruction will meet or exceed the requirements set by the MVA.

Driving Instructor’s License

While no specific requirements are set for driving school owners, instructors must demonstrate qualification before they receive a license from Maryland. Submit the application form and the $25 fee. Instructors must meet the following qualifications.

Be at least 21 years old. and have at least a high school diploma (or the equivalent).
Must have a valid driver’s license.
Not have a suspended or revoked license or more than 4 points on the license.
Pass the criminal background check.

Driving instructors may be licensed for either classroom instruction, or behind-the-wheel training, or both. Driving instructors must also pass a required course in driving instruction.

Certified instructors must complete courses in educational methods for classroom driving instruction and behind-the-wheel instruction.

Location

Your office must have a telephone connected to voicemail or an answering machine, as well as a computer with email access. You must have a visible sign on the exterior, and keep regular business hours.

Your office space must meet local and state building requirements, and it must be accessible to the public during your regular business hours. It must be accessible to persons with disabilities as well as all guidelines set by the Registrar.

Your office and classroom may be in the same space (as opposed to separated in the same building or unit), you must adjust office hours so that office hours and classroom instruction do not coincide.

Your school license must be conspicuously posted in your business office. Along with the license, you should display your hours, fees, refund policy, and complaints procedure.

Records must be maintained at your main business office.

Certified school classrooms must have sufficient seating and writing surfaces for all students. You must have a chalkboard or whiteboard at least 4’ x 6’, projection system, and a TV monitor at least 25” diagonally.

Don’t ever give a student or parent the impression that your instruction guarantees receiving a driver’s license–you may mention your pass rate.

Vehicles

Your vehicles need to have dual controls for the brakes. They must have passed the most recent Maryland safety and emissions inspections–and those inspections may be the most rigorous in the country. An airbag for the driver is expected.

Signage needs to be on the vehicle, identifying the name of the school and telephone number–letters must be at least 1.5” high and .5” wide, and be visible from front and rear or the sides. “Student Driver” signs should also be visible from the front and rear.

Records and Contracts

You will need to keep records of all students and instruction for at least three years after they finish their training with you. They may be kept on paper or electronically. The records you need to keep are:

Instructor employment records
Vehicle insurance, maintenance, inspection, and registration records
Surety bond certificates
Student test results and evaluations
Number of students trained annually
Signed student rights/responsibilities forms.

Records are open to inspection by the Department.

You must submit an annual report by January 31 of each year. The MVA provides the form for this report. Certified schools provide more information.

Certified schools also need to submit, within 1 day, certification reports for students successfully completing the course

Certified schools must have each student (and parent, if the student is under 18) sign a statement of rights and responsibilities form. The form must include the following, as outlined on page 9 of the certified schools regulations:

Classroom and testing locations, dates, and times
Cancellation, payment, refund, and retest policies and fees
Remedial training fees
Makeup policies
Behind-the-wheel instruction policies
Payment plans
Your commitment to update records within 3 days
The complaint policy

The Driving School Curriculum in Maryland

Driving schools in Maryland may offer classroom education, behind-the-wheel training, or both.

Certified schools must offer a 30 hour classroom instruction course

No more than 30 students may be in one class.
No class may receive more than 3 hours of instruction per day.
No class may start before 8 am or after 8 pm.
Classes must end by 930 pm.
Classes must be provided a 15 minute break after 90 minutes of instruction.

Maryland expects that you will follow the state Driver Education Program curriculum. While you may create your own, it will require approval from the Registry.

The Maryland curriculum and sequence is available online.

Your behind-the-wheel course should be structured so that no student receives more than 2 hours behind -the-wheel instruction in a day. The required 6 hours of behind-the-wheel education should be completed within 18 weeks.

Commercial Driver’s License Instruction

Maryland CDL schools should would with the Maryland Higher Education Commission for school licensing.

Starting a Small Business in Maryland

Your driving school is not just subject to the requirements for driver’s education in Maryland. You also need to establish your Driving School as a small business, and have to consider a number of factors. The form of business you take up, as well as the procedures, are appropriate topics of conversation with your lawyer and accountant. The considerations we offer here are not legal advice, but should provide you with things to think about as you set up your business.

Business Registration

All businesses need to register in Maryland, especially the business name—the “doing business as” certificate. Banks may not be willing to set up your account until you have that DBA form. We’ll include where to register in the business structures below.

You should also register with the Maryland Department of Assessments and Taxation.

Business name

Search for available names in the Maryland database.

Sole Proprietorship

In Maryland, the big step you have to take is to register your trade name with the Department of Assessments and Taxation.

Corporations and LLCs

As an owner of a corporation, you’ll have to set up your driving school consistently with the rules for corporations in Maryland. You’ll also have to decide whether to be an S Corporation or a C Corporation. Generally, the S Corporation form is set up for small businesses. It allows income and taxes to pass through to the owners. You will want to discuss these forms with your attorney and accountant.

You may be able to set your driving school up as an LLC in Maryland. The LLC form provides the same limited liability as a Corporation, but do not have to comply with the corporate formalities most states require, including items like bylaws, required stockholder meetings, and minutes (although minutes of meetings are probably a good idea).

You’ll have to discuss the advantages and disadvantages for the LLC with your attorney and accountant.

Both Corporations and LLCs file with the Secretary of State. In addition to name reservation, you’ll need to submit the following forms

Corporations submit Articles of Incorporation
LLCs submit a Articles of Organization

Now What Do I Do?

Once you’ve complied with all the legal requirements to be both a driving school and a small business in Maryland, you need to get students.

Getting students requires marketing—largely on the internet. You will need the following systems set up to obtain students:

A website—focused on the types of students you want to attract, and aimed at your locality.
The website should also include a blog, which allows you write about a variety topics and engage in Search Engine Optimization—which will drive traffic to your site.
A Facebook page, linked to your website, to become noticed and drive traffic.
Getting testimonials from successful students.

Marketing is something you will have to devote time to. DrivingSchool.Marketing can help you get the best bang for your marketing buck.

Conclusion

How to Start a Driving School in Michigan: A Step-by-Step Guide

Here you’ll learn everything you need to start your Driving School in Michigan

Michigan’s process for starting a driving school in the state. It’s clear spelled out in a variety of documents on the Secretary of State’s website.

Both the school and instructors have to be licensed through the Secretary of State. Much of the work can be completed online, include school and instructor license renewals.

Your Michigan driving school may offer both classroom and behind-the-wheel instruction.

How to open your driving school in Michigan

Michigan’s process for starting a driving school are straightforward.
Driver education providers may provide classroom instruction and behind-the-wheel education for teens and adults, and CDL training—but each program must be approved.
Driving instructors must be licensed by the state, including taking a series of four courses before licensing.
You may operate your school out of your home but may not provide classroom instruction there—you may rent space in a public or private school, or a church or other location.
You must maintain records for all students for four years at your main office, and must provide written contracts which contain specified items.
The classroom curriculum is divided into Segment 1 (24 hours in class, 6 hours behind-the-wheel, and 4 hours observation) and Segment 2 (taken after the student has 30 hours of supervised driving).
Michigan does not require training before obtaining a CDL, but recommends it.

Driving School Licensing and Requirements

General requirements

To operate a driving school in Michigan, you will need to be licensed by the state. Licenses are valid for two years from the date of issue. The state will send renewal applications around 60 days before expiration–and you can renew online. In addition to a completed application form, your application packet should include the following:

The application includes background information for all owners, partners, directors, and designated representatives.
Completed surety bonds for each program you offer. Regular driver education schools must provide bonds of $20,000 when you have 999 or fewer students in the previous calendar year, and $40,000 when you have 1,000 or more students.
Certificates of Insurance for all vehicles used in your school; as you might expect, you also need to provide a list of all vehicles used in your courses.
Your classroom facility must be approved by the state Fire Marshal.
If you operate a multiple vehicle driving range, the state also needs to approve it.

The current regulations for Driver Education Providers are straightforward and clear. Driving school instructors and owners should know and comply with them, and the state recommends putting a shortcut to the manual on your desktop.

Michigan requires the following minimum liability insurance coverage:

$100,000 bodily injury to one person
$300,000 bodily injury to more than one person
$50,000 personal injury protection–medical expenses, primarily
$5,000 property damage

Driving School Owner’s License

Michigan places few personal requirements on owners of driving schools. The main bar would be conviction for a number of crimes involving fraudulent behavior or moral turpitude. Everyone directly involved with program administration must have a criminal background check using LiveScan. You may use a number of private LiveScan providers.

Driver education provider’s licenses can also be denied/revoked if your driving record is marked by suspensions, revocations, DUIs, or 6 ore more points.

You may not operate without a license for your program, and it is expected that your program of instruction will meet or exceed the requirements set by the Secretary of State.

In determining your surety bond amount, count all students–whether they passed or failed.

Driving Instructor’s License

While few specific requirements are set for driving school owners, instructors must demonstrate qualification before they receive a license from Michigan.

Submit the application form and the $45 fee. Instructors must meet the following qualifications.

Be at least 21 years old. and have at least a high school diploma (or the equivalent).
Have at least 5 years driving experience in the license class you will be teaching.
Not have a suspended or revoked license.
Pass the criminal background check.
Submit a Medical Examination report.

Driver Education Instructors in Michigan must also take a driver instruction program from an approved entity. This program involves 4 courses, covering (1) Driver task analysis, (2) Developing classroom and program knowledge, (3) Developing vehicle operation skills, and (4) Practicum. Each course must carry at least 2 semester hours and last at least 3 weeks. Some driving schools are able to teach these courses.

Instructor licenses must be renewed every two years.

Unlike many states, Michigan driver education instructors may provide instruction for multiple driver education providers on a single license.

Renewal requires professional development during the two year life of the license.

Location

You are generally free to establish your business anywhere you see fit–meeting the requirements outlined below. You can choose to have classroom space, or you may conduct classroom driver education at off-site locations, including local public or private schools, or churches. Your contract with the school or other location should be included in your license application.

Your office space must meet local and state building requirements. If you use your residence for your office, you must comply with all local zoning requirements.

You may NOT provide classroom instruction in your residence.

If you maintain a separate classroom location, you may not keep records there (you probably wouldn’t want to keep records at a public school classroom anyhow, even if the school gave you permission).

Records must be maintained at your main business office.

No classroom instruction segment may have more than 36 students, although the local fire marshal may limit the class size below that, depending on the location. You may be able to get permission for a Segment 2 class of larger than 36 students.

Don’t ever give a student or parent the impression that your instruction guarantees receiving a driver’s license–you may mention your pass rate.

Vehicles

Your vehicles need to have dual controls for the brakes. They must have passed the most recent Michigan safety and emissions inspections.

Signage must both identify the school and mark the vehicle as driven by a “STUDENT DRIVER”. The latter must be in letters at least 2” high, written in black on a school-bus yellow background. The signage may be on the car top, or on the sides and rear.

Records and Contracts

Before you can begin a course, you must submit a Program Request Form to the Secretary of State at least 10 days in advance. Your courses must have a distinct Program Number, which must be recorded on the contract for each student, as well as the Request Form and Program Completion Data form (for teen courses only).

Information on the Program Number is available on page 101 of the Manual. You may use your own system (and use a system–you will be able to keep track better!).

You must notify the Driver Education Section if a course is cancelled or postponed. The easiest way to do that is to submit a copy of the Program Request form with “Cancelled” or “Postponed” written across the top (in red, thick Sharpie, we’d suggest).

By January 31 of each year, you also need to submit a Year-End Report to the Driver Education Section.

The State requires you to maintain certain records at your “established place of business”–your main office. The recordkeeping requirements begin on page 110 of the Manual. Records must be kept for four years.

For each student, you must include the following:

Signed contracts, enrollment and/or registration forms.
Classroom record-keeping, including attendance, state knowledge test scores (including answer sheets for all attempts at the Segments 1 and 2 tests for teen drivers), and other test/assessment scores–maybe a gradebook or spreadsheet.
Behind-the-Wheel/Observation forms.
For teen behind-the-wheel instruction, a signed agreement between the provider and parent that either requires at least 2 students be in the car for BTW education, or a waiver, allowing the instructor to be alone in the vehicle with the student.
Copies of instruction permits for students 18 years old and up.

The records must be available in a manner which allows the type and amount of instruction for each student is easily ascertainable.

For teen students, you must make sure your records include full information on the following:

Dates and hours of classroom, BTW instruction, and observation.
Registration and achievement records
Full payment information for all aspects of your course.
Contract copies
Program Request and Completion Data forms.

The recordkeeping requirements for adult students are a bit streamlined, but it may be easier for your system to keep identical records for them.

The state provides a number of forms which might help with recordkeeping, although you are free to create your own. If you choose to keep records electronically, make sure you can scan to your hard drive. Many 3-in-1 printers are inexpensive and will be invaluable for your business.

You must have written contracts with each student. You must keep a copy, and you must give the student and parent before any instruction begins.

Information on the contracts begins on page 116 of the Manual. The state also provides a checklist for Michigan driving schools to develop their own contracts, as well as a sample contract you can use.

Contracts must include certain required language regarding certification and Segment 2 instruction. The language is found on page 117 of the Manual, and is found in the sample contracts.

Driving School Curriculum in Michigan

Driving schools in Michigan may offer classroom instruction, behind-the-wheel training, or both.

Segment 1 courses include both classroom and BTW instruction. The two must be integrated with each other. A Segment 1 course must include at least 24 hours of classroom instruction, 6 hours of behind-the-wheel instruction, and 4 hours of observation time. Segment 1 courses are subject to the following restrictions:

Classroom instruction may last no more than 2 hours per day, and the course must least for at least 3 weeks.
No student may get behind the wheel until receiving at least 4 hours of classroom instruction.
At the end of Segment 1, each student must take a knowledge test.

Behind-the-wheel instruction is subject to the following rules:

A student may receive no more than 1 hour of BTW instruction per day.
At least 3 hours of BTW must take place before the Segment 1 Classroom Instruction finishes.
No more than 4 students may be in the vehicle.
All BTW must be finished within 3 weeks of the end of classroom instruction.
Range instruction may be substituted hour-for-hour up to 2 hours total; 4 hours of true BTW education must be provided.

There’s no limit on the amount of observation time a student may receive in a day. All observation must be completed with 3 weeks of the end of classroom instruction.

Segment 2 instruction is available to students who have (a) completed Segment 1, (b) have had their level 1 graduated license for at least 3 months, and (c) have at least 30 hours of supervised driving (at least 2 at night) with a parent, guardian, or licensed driver at least 21 years old.

Segment 2 courses include

6 hours of classroom instruction, no more than 2 hours per day.
A state approved knowledge test.

The state recommends but does not require a parental meeting during either Segment 1 or Segment 2.

Michigan expects that you will follow the state Driver Education Curriculum. While you may create your own, it will require approval from the state.

The modules you must teach during the 24 hour Segment 1 are:

Introduction to Driving
Getting Acquainted with the Vehicle
Understanding Starting, Steering, and Stopping
Traffic Control Devices
Vision/Space Management
Basic, Low-risk Maneuvers
Risk Reduction
Sharing the Road with Others
Adverse Driving Conditions
Factors Affecting the Driver

Segment 2 must cover the following topics during the 6 hours allotted for it, based on the 30 hours of supervised driving students must have before starting Segment 2:

Risk Awareness
Distracted Driving
Effects of Drugs and Alcohol
Effects of Fatigue and Emotion
Organ Donation

Commercial Driver’s License Instruction

Providing instruction for students pursuing a CDL in Michigan generally follow those for the regular driver’s license. In this section, we’ll note the key differences.

You must file a surety bond of $50,000.

On April 15 and October 15 of each year, you must file a Student Training Report with the Secretary of State.

You need to keep records of the following information for all students.

Dates and hours of classroom, range, and on-road instruction, signed by the instructor and initialed by the student.
Student payments for all aspects of the course,
Copies of signed student contracts.
A copy of the student’s valid CDL instruction permit.

Records must be kept for four years.

Starting a Small Business in Michigan

Your driving school is not just subject to the requirements for driver’s education in Michigan. You also need to establish your Driving School as a small business, and have to consider a number of factors. The form of business you take up, as well as the procedures, are appropriate topics of conversation with your lawyer and accountant. The considerations we offer here are not legal advice, but should provide you with things to think about as you set up your business.

Michigan provides a guide for starting a small business in the state.

Business Registration

All businesses need to register in Michigan, especially the business name—the “doing business as” certificate. Banks may not be willing to set up your account until you have that DBA form. We’ll include where to register in the business structures below.

You should also register with the Michigan Department of Revenue.

Business name

Before you get going, you’ll want to check to see if the business name you want is in fact available in Michigan. You can search the Michigan database, as well as visit the office of the county recorder.

Once you know your business name is available, you can reserve it with the Secretary of the Commonwealth’s office.

Sole Proprietorship

In Michigan, the big step you have to take is to register your Assumed Business Name with the county clerk where you have your established place of business.

Corporations and LLCs

As an owner of a corporation, you’ll have to set up your driving school consistently with the rules for corporations in Michigan. You’ll also have to decide whether to be an S Corporation or a C Corporation. Generally, the S Corporation form is set up for small businesses. It allows income and taxes to pass through to the owners. You will want to discuss these forms with your attorney and accountant.

You may be able to set your driving school up as an LLC in Michigan. The LLC form provides the same limited liability as a Corporation, but do not have to comply with the corporate formalities most states require, including items like bylaws, required stockholder meetings, and minutes (although minutes of meetings are probably a good idea).

You’ll have to discuss the advantages and disadvantages for the LLC with your attorney and accountant.

Both Corporations and LLCs file with the Secretary of State. In addition to name reservation, you’ll need to submit the following forms

Corporations submit Articles of Incorporation.
LLCs submit Articles of Organization.

Now What Do I Do?

Once you’ve complied with all the legal requirements to be both a driving school and a small business in Michigan, you need to get students.

Getting students requires marketing—largely on the internet. You will need the following systems set up to obtain students:

A website—focused on the types of students you want to attract, and aimed at your locality.
The website should also include a blog, which allows you write about a variety topics and engage in Search Engine Optimization—which will drive traffic to your site.
A Facebook page, linked to your website, to become noticed and drive traffic.
Getting testimonials from successful students.

Marketing is something you will have to devote time to. DrivingSchool.Marketing can help you get the best bang for your marketing buck.

Conclusion

Michigan makes it easy to get your school up and running. While you’ll have to have everything ready, including your curriculum and lesson plans, ready to go before you start, once you’ve filed you’ll be ready to go.

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Records and Contracts

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