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 DE: A Step-by-Step Guide

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

Driver’s education in Delaware is largely under the control of the school system–at least for new drivers under 18. All public and non-public school students are entitled by state law to one free driver education course. This course includes classroom time as well as behind-the-wheel and in-car observation time.

DE also does not require a minimum number of hours of behind-the-wheel driving in order for people to take and pass the road test. The decision to seek additional behind the wheel training is therefore up to the parents and student–or the new adult driver.

Delaware does encourage drivers to take a defensive driving course–which may be offered by private driving schools. Some drivers may be required to take a Driver Improvement course by a court. Finally, DE does have requirements for CDL driving schools.

How to open your driving school in Delaware

The regulations for commercial driving schools in DE are pretty straight forward.
Your facilities must meet commercially reasonable state requirements.
You must use an approved form of contract for all students and maintain student records.
The qualifications for instructors of regular driving, defensive driving, and behavior modification courses are similar.
Public and private high schools generally offer the full driver’s education courses in DE; your commercial Delaware driving school may offer Defensive Driving courses approved by the state—these allow insurance reductions.
Delaware imposes no special requirements for providing CDL instruction.

Driving School Information Summary

Before you open your doors, you need to make sure that you are in compliance with your state’s requirements. In DE, the requirements are specified for driving schools offering training for a commercial driver’s license. In addition, offering additional driver training courses, either to promote defensive driving or encourage behavior modification/anger-management must meet state requirements.

Delaware also has a regulatory system for all commercial driving schools. These requirements are outlined first.

Commercial Driving Schools in Delaware

To run a commercial driving school in DE, you will need to meet a number of state regulatory requirements. While they are pretty straightforward, making sure your plans follow all of the regulations is a wise idea as you startup your driving school in the First State.

Your application for an initial license should included the following:

Name and address of the school and the owners or officers of the corporation.
A description of the classroom and behind-the-wheel instruction you will be providing.
The places where you will be providing instruction.
Samples of your contracts and schedule of fees.
Statement of financial responsibility.
The application must be sworn to by a sole proprietor or all officers of a corporation; in the latter case all stockholders must be identified.
Each applicant or officer must submit to a background check, including fingerprinting.
A list of all instructors must be included.
An copy of the assumed business name certificate must be included.

The fee for the original application is $115 plus $50 for the background check; renewal fees are $115.

Licenses expire in December, and must be displayed in the office along with the service fee list for the school, and an instructor list.

Location and Operation

Your facilities must meet certain requirements. Most of these requirements are commercially reasonable.

You must have adequate office space, and if you offer classroom instruction, your space must be at least 200 square feet in size, with proper lighting, heat, and comfort care for students.
You may not be in or adjacent to a building used by the DMV to receive applications for driver’s licenses; the same restriction applies to locations used by the Driver License Examiners.
The DMV expects you will be operating out of a legitimate location, not a house trailer, residence room of a hotel, bar or grill, billiard hall, or gasoline station–the regulations have a longer list.
Your office and classroom don’t need to be at the same location, it appears from the regulations (section 8.0). The key is maintaining the right size–12 square feet per student, adequate heat and light, etc.
Make sure you have adequate seating and writing surfaces, chalkboards/whiteboards and other visual materials, textbooks and other appropriate materials.
You may share classroom space with other driving schools, but you must keep the schedule tightly, and have it available at your premises.
No classroom may be more than 15 miles from your office.

Contracts

Your contract forms MUST be approved by the DMV. All contracts with a student must be in writing. Each contract form must include:

School name and address and student name and address–as well as student license and permit number.
Schedule of lessons for both classroom and behind-the-wheel instruction, as well as the rate per hour for lessons.
Clear statement of the contract price and payment terms.
Dates, places, and hours of instruction.

You may not say “NO REFUND” nor guarantee a license. You may include a refund policy. The state also requires very specific verbiage which you will find at Section 6.4.6 of the Regulations. Remember you need to follow the regulations!

Delaware’s regulation forbid photocopying, dittoing, or mimeographing (!) to be “preprinted”–your contracts should be preprinted

Make sure you do the following as you operate your driving school in DE:

Make sure each student has a valid Delaware driver’s license or learner’s permit.
Make sure each student has a permit or license on their person when giving behind-the-wheel instruction.
Avoid contracting for unlimited lessons–your program should be for a set number of lessons.

Retain your records and contracts for at least three years–and they must be available for inspection by the DMV during your regularly stated business hours.

Required Driving School Records in Delaware

Delaware requires driving schools to have an accident form ready for use in the event of an accident, which thereupon must be submitted to the DMV.

You must submit the form of contract you use to the DMV when you apply for a license, and must use that form until you change and get approval for the change. Each contract must be sequentially numbered.

You must maintain student records–which must be on paper if the regulations are to be taken literally. While most schools will track their records electronically, it is important to keep records on paper–and to keep them current. The records you need to maintain on paper are:

A permanently bound book or series of books with consecutively number pages, indicated the names and addresses of students, their student numbers, and contract numbers. The entries MUST be in sequence by contract number. (If you are smart, this will be a frequently-updated spreadsheet, allowing you to search by student–which is far more practicable).
A set of files–the “Student Record Files”–which is maintained in alphabetical order. It may be divided into Active and Inactive student sections. Each Student Record File must include a copy of each contract, complete contact information for the student, service description including date and time, the instructor providing the service, the vehicle used, and the receipt number. The information must all be placed on a Student Record Card in the file.
A permanently bound Cash Book, showing receipts and disbursements, including detailed information about all monies coming in and out. These records must be kept for three years.
All payments to your driving school must have a receipt issued, and all receipts must be numerically recorded–no number may be repeated. Receipts must be retained in numerical order, and entered in the Cash Book and Student Record Card as appropriate.

Vehicles

Needless to say, your driving school vehicles must also comply with Delaware regulations. Your vehicles must be fully insured as noted below. In addition, they must have seatbelts for students and instructor, a heater/defroster in working condition, a right-side exterior rear view mirror, and current registration and inspection.

Driving school vehicles must also have dual controls for the foot brake and clutch–if the vehicle is manual transmission.

The vehicle must carry signage saying “STUDENT VEHICLE” at least 5 inches in height, and visible from the front and back of the vehicle. The driving school’s name and location must be similarly displayed, with letters/numbers at least 2” in height.

You must carry minimum insurance levels on each vehicle, and the insurance must be from a company licensed to do business in Delaware. The minimum coverages for any one accident are:

$25,000–individual bodily injury or death
$50,000–two or more people suffering bodily injury or death
$10,000–property damage.

Advertising

You must be licensed by the DMV in Delaware to offer driving training. Never represent that you are affiliated with the DMV, and include your school’s name, phone number, and address in each advertisement

You may state that you are licensed by the state, but the lettering may be no more than ⅓ the size of that of the school’s name. Do not indicate that you have been “approved”.

Do not solicit business in or within 100 feet of a building owned by the state to issue motor vehicle registrations or driving licenses.

Section 11 of the Regulations contains many details of what you may or may not do while advertising your driving school. Make sure you know and follow these rules.

Driving School Instructors

In general, Driving School instructors in Delaware must:

Be a US citizen of good moral character and sound mind.
Hold a valid driver’s license and be over 18 years old.
Have at least 20/40 corrected vision in both eyes.
Not have had a license revocation or suspension within the last 2 years.
Have less than 8 points on license in the previous 3 years, and no DUI convictions within 5 years.
Have at least a High School diploma or GED.
Have both arms and legs, unless a waiver is granted by the DMV.
Demonstration completion of a two semester-hour college level course for teachers.

Instructor qualification for Defensive Driving and Behavior Modification courses

Because many schools may offer both options, we’ll go through the combined qualifications here. We’ll not important differences.

AM course Instructors must meet the following basic qualifications:

Be at least 18 years old.
Hold at least a high school diploma or GED.
Have a valid driver’s license–for at least 36 months for the defensive driver instructor.
Have no more than 4 points on the license (for the Defensive Driver instructor) or 6 points on the license (for the Behavioral Modification course instructor), as well as no license suspensions or revocations within the last two years.
Defensive Driving instructors must submit–with their initial application–documentation showing a minimum of 9 hours of in-service training classes taught by a certified Instructor–no more than 3 of them may be spent observing the instructor teach an actual instructor. In addition, the applicant must document a minimum of 6 hours of instructor class presentation observed by a Provider-certified instructor.
Defensive driver instructors must be recertified every three years. Recertification requires documentation of teaching the course for at least 12 hours in the previous calendar year, attended in-service update training seminar, and submits a form certifying that the instructor meets the requirements. A copy of the driving record must accompany the application.
Behavioral Modification course instructors must recertify annually by demonstrating teaching for at least 8 hour during the previous calendar year and proving attendance at in-service update training seminar.

The Driving School Curriculum in Delaware

General Instruction

Your course should offer both classroom and behind-the-wheel instruction. Unless you are offering a short review course, you should plan a program involving 10 hours of classroom training as well as 6 hours of behind-the-wheel training. Your course should last no more than three weeks.

Instruction may not be given in an officially-designated road test area. Contact the DMV for that information.

Defensive Driving

To be approved to teach the Delaware defensive driving course at your driving school, you must submit the following materials for approval:

All written materials used in instruction or provided to students, including testing materials and curricula.
The identities and qualifications of all instructors.
All material for the online course, including access to the DMV allowing them to audit the online course.
All testing/grading for the online course.
Identity and qualifications of persons available to answer student questions regarding content and technical support for an online course

The course itself must provide at least six hours of instruction or on-line time for the initial course, and three hours for renewals. Each classroom hour must last for at least 50 minutes on average, plus breaks, and online courses must require the same amount of time.

At least three of the six hours must address a set list of topics. The topics, which are spelled out in the regulations, include:

Delaware traffic laws and defensive driving/collision prevention theory and techniques.
Vehicle safety devices.
The effects of drinking, drugs, and driver condition on driving.
Distractions and road conditions requiring driving adjustment.
Driving techniques and skills.
Hazardous situations and symptoms of aggressive driving.
Speed limits, school buses, emergency vehicle right-of-way, and turn signals.
Headlights, Motorcycles, and Pedestrians.
Procedures for the insurance discounts and the 3-point DMV credit.

Students taking Delaware online defensive driving courses must have a technical support person available during normal business. The support personnel must be able to assist with content and technical issues. The hours MUST be posted in bold large lettering on the website before the student accesses the course page. The DMV must approve those hours.

Other items to be aware of as you plan the defensive driving class at your driving school in DE:

Provide students completing the course with a certificate.
Obtain online students’ driver’s license information, as well as have each online student complete an online affidavit verifying they are the student taking the course, acknowledging that making a false statement is potentially a criminal violation.
Inform students how they can file complaints.
Notify the DMV within 14 of each student’s completion.
Create your own teaching materials or license other material from another entity.
Maintain sufficient staff to ensure everything can get done in a timely manner.

Behavior Modification/Attitudinal Adjustment

This course, which follows a conviction for aggressive driving, gives drivers a chance to correct at least part of their offense.

The course must last for at least 8 hours of classroom training, and may not be completed online. At least 50 minutes of each hour must be devoted to curriculum presentation. You will need to maintain full records for at least three years, including information on class locations, times, number and names of participants, as well as their driver’s license numbers and dates of birth.

You will also need to provide your instructors with annual in-service trainings. The DMV prescribes the curriculum for this course.

Commercial Driver’s License Instruction in DE

The content of instruction will follow the CDL manual provided by the state. Your CDL driving school requirements–including your instructors–will have to meet the general qualifications noted above. We recommend your instructors have CDL-A themselves.

One difference is that your vehicles do not need to have dual controls or foot brakes. Your vehicles will need some method which will allow the instructor to bring the vehicle to a halt–the Delaware DMV notes a trolley brake is acceptable.

If you run a Commercial Truck Driver Training School, make sure your instructors have evidence of United States Department of Transportation certification and qualify by experience or training, or both, to instruct students in the safe operation of truck-tractor trailer combination units.

Starting a Small Business in Delaware

Your driving school is not just subject to the requirements for driver’s education in Delaware. 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 Delaware, 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.

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 Delaware, sole proprietorships are subject to the following requirements:

File your “Doing Business As” certificate with the Prothonotary’s office in each county you will be doing business in.
File as you need to with the Division of Revenue, Unemployment Insurance, and Workers’ Compensation.
Register with your localities as necessary/

Corporation

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 Delaware. 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.

Limited Liability Company (LLC)

You may be able to set your driving school up as an LLC in Delaware. 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.

Delaware Corporations and LLCs should register with the state’s “OneStop” process–which will guide you through all the steps needed.
For either structure, you’ll probably need to check on name availability.
Corporations will need to file Articles of Incorporation.
Limited Liability Companies file certificates of formation.
Consult your attorney and use the forms Delaware provides for filings at the state level

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 Delaware, 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 AR: A Step-by-Step Guide

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

Arkansas keeps things relatively easy when it comes to driver education and driving schools. Driver’s education is not required to get a license, although it is recommended–at least for the insurance discount and the increased likelihood of passing both the written and road tests on the first try.

AR does have some structural regulations for driving schools, and provides a set of objectives and curricular goals for a classroom course which can be offered by a private driving school in Arkansas.

How to open your driving school in Arkansas

AR driving schools are covered by the State Board of Private Career Education.
The Board has regulations covering admission, cancellation policies, license fees, and driving school finances.
Driving instructors must have at least a high school education, 21 years old or older, and a valid driver’s license with no more than 8 points on the record.
Arkansas does not require driver’s education for new teen drivers, but sets the objectives for the Driver’s Education curriculum.
AR Driving Schools wanting to provide CDL education will have to create a curriculum; no CDL training is required in Arkansas.
AR Driving Schools may be sole proprietorships, corporations, or limited liability companies.

Driving School Information Summary

Before you open your doors, you need to make sure that you are in compliance with your state’s requirements.

Each state’s regulations for driving schools and driving instructors vary. In this section, we’ll outline the key regulations from the state, as well as include links to any relevant state agencies. These links don’t apply to general business requirements—we cover that below. This section is specific to driving schools in Arkansas.

The state provides certain forms, which will be noted below. At present, the forms are being rewritten, but you can contact Alana Boles at alana.boles@adhe.edu to obtain the updated form you need. The list of forms is available, and we will note the form number as necessary throughout this guide.

Driving schools

Driving schools are covered by the Arkansas State Board of Private Career Education. The regulations covering schools are pretty straightforward. Schools must comply with the following guidelines:

Admission requirements must be published and followed.
Classes must start at announced intervals–following a set schedule.
Students under the age of 18 must sign any agreement for training with a parent or guardian.

If you are going to send representatives out to recruit students, you will have to make sure that the representative has an Admissions Representative license. The process for obtaining one is outlined in the regulations, but a background check is required. Admissions representatives must recruit students within the following limits:

They only discuss their own school’s program honestly and with integrity.
They do not promise employment.
When asked about another school, they only say that prospective students should contact the other school or the Board.
They do not try to get students to break agreements with other schools.
They do not discuss financial aid except to indicate that such aid is generally available.

Representatives should be knowledgeable about their school’s policies and procedures.

The Admissions Representative license original application is Form 5000, and the renewal is Form 5020.

Surety Bond

In general, schools are required to post a surety bond with the state, to protect students in the event that a school violates one of the regulations or fails to perform the required services for the student. Filing the surety bond requires use of Form 4600.

The bond, however, is only required of schools with a program or programs costing more than $3,000. If your driving course is structured to cost less than that, you do not need to work about the bond.

Cancellation and Refund Policy

Your school must have a published cancellation and refund policy. The state requires certain minimum policies, including

Full refund for students cancelling the contract within 3 days–not counting Saturdays, Sundays, and Holidays.
Students who are not accepted get a full refund except for an application fee of up to $25.
Refunds must be made within 30 days after the student withdraws from the program or completes it, and proof of refund must be placed in the file.
Students may not be required to purchase instructional supplies until needed.
If a course is cancelled, refunds must be made immediately.
All tuition is refundable, except for a registration fee not to exceed $100. If a student withdraws when less than ¼ of the program is completed, the refund is calculate pro rata. If the student withdraws when the program is between ¼ and ½ completed, the refund is not less than 50% of the tuition. If the program is ½ to ¾ completed, the refund is 25%, and if the program is more than ¾ over, then no refund is required.

License Fees

Each school must pay an annual fee for its license. The fee is due in April of each year, but if you start your school in another month, the fees will be prorated monthly. For example, if you start up in August, you will pay 9 months for the first “year”. When you renew, your license fee will cover from May 1 to April 30 of the following year.

The original fee (and renewal fee) is based on the program you offer with the highest tuition. For your original licence, it is prorated depending upon when you start, as noted. Starting in August, therefore, with a full Classroom and Behind-the-Wheel Package of $600, therefore, places you in the $500-$1000 fee bracket–the fee is $925 through April of next year (if you started in March or April, you’d be paying $1,375).

If you have multiple programs, you pay an extra per-program fee. In our example, you’d be paying an extra $75 for each program.

The renewal fee is generally lower than the original. Continuing our example of the school starting in August, its renewal fee–due by April 30–is $750, with nothing extra per program.

The Original License application form is Form 1000. You may renew your license online, as a replacement for Form 1030. The financial information required for renewal is submitted with Form 1305.

Finances

Driving schools in AR are expected to be on a sound financial footing, able to pay for rent, utilities, materials, salaries, and wages. The Board may request an annual report or other financial information.

When you submit your original license application, you must submit financial information. If your tuition is over $1,000, then a CPA must prepare the financial statement and balance sheet. If your highest tuition is $1,000 or below, then you may prepare and submit a balance sheet.

When you seek renewal of your license, you must provide financial information. If your highest tuition is over $1,000, then the financial statement must be prepared by an accountant. If your tuition is $1,000 or under, than a balance sheet and income statement is required.

Driving Instructors

Information on the driving instructors in your school should be provided to the Board either with your licensing application or within 30 days of the instructor’s first day in the classroom. After you have begun operations, you need to let the board know of any new instructors within thirty days of their first day in the classroom.

The Board requires the names and proof of all qualifications on their forms. Use Form 3060 for Drivers Education Instructor qualifications. Instructors may not also be current students at the school–in the same or similar program, and must be present whenever a panel or guest speaker is present.

Becoming a driving instructor in Arkansas is relatively simple. A driving instructor must:

Possess a valid AR drivers license and have at least a high school diploma or GED.
Have completed a First Aid Class within the last 3 years.
Be at least 21 years old.
Not have had their driver’s license suspended, canceled, denied, or revoked within the past 36 months, and have no more than 8 points of violations on their driving record.
Meet one of the three educational requirements discussed next.

Driving instructors must meet one of the three educational requirements. The first requirement is to have a minimum of 6 semester hours of Driver Education. Another route to licensure is to have at least 72 hours of driver education training–documented. Finally, having 7 years of work experience which directly connects with your driver education course–including law enforcement and accident investigation.

The Driving School Curriculum in Arkansas

Arkansas sets the objectives for the Driver’s Education curriculum for the classroom portion of the course. You are, of course, free to add topics information, but at the very least, you should be covering the following topics:

State and Federal laws and the responsibilities of the driving privilege.
Using visual skills and making lower-risk decisions.
Interactions with other users of the roads and highways.
Demonstrating safe driving of vehicles through steering, braking, and accelerating.
Understanding how technology works within vehicles.
Active and passive occupant protections systems.
Responsible actions when physical and psychological conditions might affect driver performance
Owning, operating, maintaining, and insuring a vehicle, as well travel planning.

Other features which Arkansas requires may include <complete with text>.

AR requires the following hours for the curriculum:

30 hours of classroom instruction.
6 hours of in-vehicle observation.
6 hours of behind-the-wheel driving with an instructor.

Arkansas does not require a minimum number of hours of practice driving, but the State Police do note that more practice both makes for a better driver and increases the chances of passing the road test on the first trip.

Commercial Driver’s License Instruction

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

Information

CDL training is not required in Arkansas, but investing in it is probably a very good idea. Training will make sure people are better drivers and increase their chances of passing the tests involved.

Arkansas has no set curriculum for schools which offer CDL training. The state does refer CDL candidates to the Model Commercial Driver License Manual as a basis for preparing for both the written and road skills tests. The Model Manual has not been adopted in any way for the state.

You are free, therefore, to create a CDL Curriculum based around the manual and set up your school around it. Some AR community colleges offer 4-week CDL courses.

Starting a Small Business in AR

Your driving school is not just subject to the requirements for driver’s education in Arkansas. 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 Arkansas, 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.

Sole Proprietorship

In Arkansas, sole proprietorships are subject to the following requirements:

Check to see if your business name is similar to another’s–it might be important for trademark issues.
Register your “Doing Business Under an Assumed Name” certificate with the your County Clerk.
Make sure you have worker’s compensation insurance covering all employees.
Check with your local officials to see if you have to register or get a business license from your town.

Corporations

As an owner of a corporation, you’ll have to set up your driving school consistently with the rules for corporations in Arkansas. 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.

Corporations in Arkansas are required to register as noted below, as well as submit other forms as noted. Many of the forms can be completed either on paper or online; online submissions cost less, and can be paid online via Visa/Mastercard, Discover, or Amex.

Reserve your entity name–this filing is good for 120 days. The paper version is a fillable pdf form, while the online version requires you to enter the filing act–for corporations it’s Act 958 of 1987.
File the Articles of Incorporation, either online (under Act 958 of 1987) or via US mail using the pdf available from the Secretary of State.
If you are doing business under a fictitious name, you will need to file an Application for a Fictitious Name, either on paper or online. To file online, you will need your corporate filing number.
Make sure you have worker’s compensation insurance covering all employees.
Check with your local officials to see if you have to register or get a business license from your town.

Limited Liability Company (LLC)

You may be able to set your driving school up as an LLC in AR. 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. The filing fee schedule for LLC is available online.

LLCs must register and follow other requirements of Arkansas’s laws:

Reserve your LLC’s name using the LLC form, either online (noting Act 1003 of 1993) or with the fillable pdf.
Register the LLC by filing the Articles of Organization, either online (noting Act 1003 of 1993) or by mail with the fillable pdf.
Make sure you have worker’s compensation insurance covering all employees.
Check with your local officials to see if you have to register or get a business license from your town.

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 Arkansas, 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

Arkansas’ procedures for setting up a driving school is one of the easier ones in the US. Once the forms are reworked–hopefully in the Spring of 2017–the process may be entirely online.

You will need to make sure you have the right liability insurance for your small business, as well as the vehicles you use. But you should be set to go if you follow these simple procedures.

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

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

California has the largest number of drivers–and therefore of new drivers–of any state in the United States. California allows private driving schools to help those new drivers learn how to drive.

California has a distinct procedure for establishing school, but that procedure is pretty straightforward, and the state DMV provides a very clear explanation of what you have to do to to start a driving school in the state. Most of the forms are in pbf format which can be completed on your computer and then printed for submission.

How to open your driving school in CA

California requires both classroom learning (driver education) and behind-the-wheel training (driver training) for new teen drivers.
Driving schools in CA require an owner, an operator, and at least one instructor—and the same person may fill all roles.
Each role requires a separate license and application package.
You will need to submit your lesson plan (curriculum) as part of the license application package.
Becoming a driving school operator or instructor in CA requires passing a state examination.
CA driver education requires 25 hours in the classroom.
The State of California provides many forms for setting up a small business, but in many cases need to be submitted by mail.

Driving Schools in CA

Driving schools in California are licensed to provide either or both of driver education and driver training. Driver education is classroom time, and the curriculum is largely defined by the State. Driver training is laboratory training, using both behind-the-wheel and in-car observation time.

Driver Education and Driver Training

California makes a clear distinction between driver education and driver training.

Driver education refers to the classroom learning students are required to take–1500 hours total over 30 50-minute class periods.

Driver training refers to any instruction which takes place in a vehicle, whether behind-the-wheel or observation time.

Driving School Roles

The CA driving school structure is organized around three distinct roles–who may all be the same or different people with the driving school. Each of these roles requires a separate license.. They are:

The driving school owner, who engages in the business of driving education and driving training.
The driving school operator, who is either a driving school owner operating their own driving school or an employee of the driving school designated by the owner to direct and manage the school.
The driving instructor, who is an employee of a driving school who is licensed to provide driver education and driver training.

One other provision in California law allows for an “independent driving instructor” to provide instruction in a city with a population less than 40,000 in a county less than 400,000, and the city cannot have an established licensed driving school it it. The independent driving instructor must be certified to teach driver education or training under the Education code. We will not be spending much time on these independent driving instructors.

Student licenses

Driving schools may issue Student Licenses to students who are at least 15 years old who are taking a course in driver training approved by the State.

The school needs to apply to issue Student Licenses, using form OL 804, and must have at least one employee who can administer eye examinations. Driving instructors should all sign the application form, if they are going to be signing the Student Licenses.

Background Investigations

Driving school owners, operators, and instructors will all undergo background investigations before licenses are issued.

The DMV may refuse to issue a license to anyone who has committed a crime or act of moral turpitude which also relates to the duties required by the license.

License Requirements and Forms

You must meet all the requirements for each of the roles you will fill in your driving school in CA. In this section, the form number will be noted in parenthesis, and that number will have a link sending you to the form on the California DVM page containing the form. Most of the forms can be completed on your computer, and then printed.

One key document for you is the California Driving School Program Handbook, which provides a lot more detail on all of these requirements.

Driving School Owner

To be an owner of a driving school, you must make sure that you have everything ready to go when you apply to the DMV. You will need to do the following things–as noted on the state’s checklist (OL 222):

File the application (OL 216) and pay the fees–$150 for the application, $70 for each additional branch, and $1 for the Family Support Fee.
Submit your Personal History Questionnaire (OL 29b)–for you and everyone listed as an owner on OL 216–as well as a copy of your Request for Live Scan fingerprinting (DMV 8016) indicated that you have completed the LiveScan.
Submit the Surety Bond (OL 218) OR a Deposit Agreement (OL 25E) and Payee Data Record (STD 204).
Provide the certification of your compliance with the state Worker’s Compensation laws (OL 4002).
Complete the form appointing the Director of the DMV as the agent for service of process for all people named as owners in OL 216–the main application (ADM 9050).
Have a place of business open to the public, as discussed in Premises, later on in this document.
Either meet the requirements to be a driving school operator, or have an employee who meets these requirements.
Submit a certificate of insurance (OL 207)
Supply a Safety Inspection Report (OL 221) for each vehicle you will be using–the inspections must be completed at a facility licensed by the Bureau of Automotive Repair.

You will also need to provide additional documentation, including

The DMV’s letter which approves your lesson plan or authorizes you to use a previously approved lesson plan.

If you are incorporated, a copy of your SI 550 filed with the California Secretary of State.
If you are a Limited Liability Company, a copy of your LLC 12 filed with the California Secretary of State.
Copies of your lease, rental agreement, or proof of ownership of the premises.
A copy of your fictitious name statement, but if your surname is part of your business name, you do not need to submit this form.
A copy of your Business License, Certificate of Occupancy, or Tax Certificate, if any or all of these are required by your city or county.

If you plan to operate a classroom at a location other than your business office, you will also need to complete Form OL 140, which is completed by your local zoning agency. You will also need to submit OL 226, modifying your license for classroom only purposes.

In addition, you will need to submit photographs of your office, sign, and location. the photographs must clearly show your places of business.

2 Office Photos, one from front-to-back, the other from back-to-front, booth showing the side walls.
1 Sign photo, showing that it is visible from 50 feet (ideally).
1 Location photograph–showing the exterior.

Receiving a licence to be the Owner of a driving school does not give you the right to provide instruction.

If you are going to be the Operator of the school, you must also submit the Operator application–or designate an operator.

Insurance Coverage for Driving School

You must maintain the following minimum coverages for any one accident on your vehicles:

$150,000 for bodily injury to or death of one person.
$300,000 for bodily injury to or death of two or more people.
$50,000 for property damage.

Driving School Operator

Driving school operators manage the daily business of the driving school in CA. As you prepare your application package for your operator’s license, referring to the checklist (OL 225) will be helpful. Your application packet should include the following:

Complete the application form (OL 217) and submit the required fees–$101 plus $15 for each additional branch.
A Personal History questionnaire (OL 29B).
A copy of your completed LiveScan fingerprinting form (DMV 8016).
Proof that you have completed the Driving School Operator Written Examination.
Proof that you have fulfilled the required hours for behind-the-wheel driver training–2,000 hours if employed by a licensed California driving school, or 1,000 hours teaching in a public school– if certified by the California Department of Education to teach driving education and driver training.
If you are teaching motorcycle driving exclusively, the requirement is 300 hours.
Proof that you are at least 21 years old.

Receiving a Driving school operator’s license does not permit you to provide driving instruction in California–a driving instructor’s license is required.

Driving School Operator Examination

The exam the driving school operator must pass covers a range of topics. You must pass within 3 attempts, or you must begin the application process all over again.

The exam covers:

Traffic laws
Safe driving practices
Motor vehicle operation
Knowledge of teaching methods and techniques, especially when teaching minors.
Driving school regulations and procedures

A physical examination of the premises is also required.

Driving School Instructor License

Driving instructors provide the instruction to new drivers. The application process is relatively straightforward. The Driving Instructor checklist (OL 219) will help you complete your application, as well as help any prospective employees you might hire. The instructor application packet includes:

A completed application form (OL 161) and fees–$31.
A certification that you have read and understood the applicable laws and regulations (OL 203).
A Physician’s Health Report (DL 546A) — if you have a valid DL 51 on file (because you provide CDL instruction or are a firefighter, you do not need to file the DL 546A).
A copy of your completed LiveScan fingerprinting form (DMV 8016).

California requires also that you provide proof that you’ve met a number of additional qualifications. These include:

Successfully completion of the Driving School Instructor written examination.
Completion of a college-level course in the teaching of driver education and driver training.
Demonstration that you’ve graduated from High School.

Driving School Instructor Examination and Course

The CA Driving Instructor examination covers much of the same material as the Operator’s exam. Topics covered include:

Traffic laws
Safe driving practices
Motor vehicle operation
Knowledge of teaching methods and techniques
First aid
Regulations regarding teaching driver education and training to minors.

The course requires 60 hours to take. 40 of those hours are in the classroom, while 20 are behind-the-wheel. The course may be offered by private driving schools in CA.

Premises

You must maintain an “established place of business” to run a driving school in CA, although you may have classroom space at a separate location. If you run several types of business, they must be kept physically separate from the driving school business.

You may use hotel rooms as well as rooms in your house or apartment for your driving school, but the room must be exclusively dedicated to the driving school, be located on the ground floor, and have an entrance to the exterior. Your established place of business must meet the following requirements:

Be at least 500 feet from any building used by the California DMV.
Provide proper vehicles which have a dual brake for the instructor as well as an inside right rear view mirror.
Your sign must be visible from fifty feet from where it is posted on the exterior of your building, and it must include the address if the address isn’t already on the building. If you can’t place a sign visible from fifty feet, then it must be visible from the nearest public entrance.
If you can’t place a sign on the exterior of the building, you must have a sign near your office entrance door as well as the lobby directory listing of your driving school.

The Driving School Curriculum in California

Forms needed

To run your driving school, you will need a number of forms, all of which can be ordered from the CA DMV. The forms you focus on are the certificates of completion of the different stages of driving instruction. The forms are:

DL 400B–Certificate of Completion of Driver Education, DMV Licensed Driving School. This form covers the classroom portion only.
OL 400D–Certificate of Completion of Behind-the Wheel Training–which covers the 6 hours required.

These forms are available in books of 100, and the DMV expects you to order the quantity you expect to use over 12 months. You must use the DMV order form, which also allows you to order Student Licenses if you choose to issue them–these books of 25 cost $50 per book.

Driver Education (Classroom time)

California mandates all of the curriculum for every driving school, both for the in-class as well as the behind-the-wheel portions of driver’s education. As you prepare your curriculum, keep the following factors in mind.

You must provide 1500 minutes of total instruction, organized into at least 30 50-minute periods–you may take 5-10 minute breaks between periods.
Each student may be receive a maximum of 7 hours of instruction per day.
You must use at least 5 contemporary films or videos. Your curriculum must list them, along with a short description. No more ahn 180 minutes of your course may be devoted to video time.
You must use contemporary textbooks.
The lesson plan/curriculum you submit must be detailed enough that the DMV can review the course. Include anticipated times, and the DMV should be able to determine (a) the subject covered in a given lesson, (b) why it needs to be covered, (c) how it will be covered, and (d) when in the sequence it is covered. Make sure that most of your course is original to you.
The DMV does not want you to rely on students reading with no guidance. You should plan for a variety of learning activities, including lecture, films and discussion, reading, tests and review, guest speakers, demonstration, and topic discussion.
Online driver education must match the classroom experience as much as possible.

The CA Driver Education Lesson Plan (which many would call a curriculum) outlines the topics to be covered, as well as the recommended time per topic. Your driving school’s driver education course should be organized around the following areas or units:

Driving is a responsibility/the driver 4 hours
Natural forces affecting driving 2 hours
Signs, signals, markings, and the rules of the road 7 hours
Major causes of accidents 3 hours
Differences in urban and rural driving 2 hours
Critical vehicle systems 2 hours
Pedestrian safety .5 hour
Effects of alcohol and drugs and substance abuse 4.5 hours
Motorcycle safety .5 hour
Driving experience and road rage 2.5 hours

The outline CA provides for Driver Education is a good foundation for a driving school classroom curriculum. You will have to demonstrate that you are current in the field by selecting contemporary films and textbooks, as well as provide strong learning activities for your students.

Preparing the curriculum will probably be the most time consuming task you have before your doors open, but it’s creative–it will form the foundation of your teaching.

Driver Training (Behind-the-Wheel)

All new drivers under 18 must receive 6 hours of behind-the-wheel driver training with a professional driving instructor–either at their school or through your driving school

Observation time does not count towards these 6 hours. You are free to plan your driver training as you see fit, but no student may receive more than 2 hours per day. Some secondary schools offer more than 6 hours of driver training, and the excess hours may count towards the 50 hours of supervised driving time.

The DMV is not clear whether the 6 hours of Driver Training counts towards that 50-hour requirement. It is best, therefore, to assume that it doesn’t.

In California, new teen drivers have to complete 50 hours of supervised driving in addition to time driving as part of driver training. Supervised driving requires a licensed driver to be in the front seat next to the driver. The supervising drivers may be driving instructors, parents, guardians, and others.

At least 10 of those hours must be at night.

To count as a supervising driver in California, the person must:

Be at least 25 years old.
Have a valid California driver’s license.

Required Records

CA requires driving schools to maintain specific records. The records must be kept for three years, and must be available for DMV inspection at all “reasonable” times–business hours most likely. The records you need to keep include:

The school’s name, address, and license number.
The name and address of each student.
Each student’s permit or driver’s license number.
The date each instruction permit was issued.
The name and instructor’s number for each instructor.
The dates and types of all instruction as well as hours of instruction.
The total cost to each student.

You might want to organize your records around current and former students, and keep both electronic and paper versions.

Other CA Driving School Information

The CA DMV provides parents and teens a range of information about driving schools which indicate what California driving schools may or may not do. Based on this information, the following points apply to you and your school.

Your driver education course may take as long as it needs to, as long as it provides at least 25 hours of instructional time; you should probably keep it as short as possible, respecting school and job commitments.
Your videos may include graphic depictions of accidents, but you should warn parents ahead of time.
You may permit observers in the car during a student’s behind-the-wheel instruction, while parents may request that no passengers be in the car.
Parents may request male or female instructors, but you do not have to guarantee the availability.
You do not have to meet a set schedule for driver training, but you should allow enough time between sessions to allow the teen to practice with the parent.
You may have a pick-up/drop-off policy, but that’s entirely up to you.
The state does have a complaints process for driving schools.

You should post your licenses in your office for your clients to see–proving that you are licensed to be a California Driving School, and are able to teach driver education, driver training, or both. We recommend that your website include a link to the state complaint process, but that you also have a policy for handling complaints.

You probably should not guarantee passage of the driving tests, although once you have a track record, you may certainly boast about your passage rate.

Starting a Small Business in California

Your driving school is not just subject to the requirements for driver’s education in California. 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 California, 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.

Sole Proprietorship

In California, sole proprietorships are subject to the following requirements:

File your statement of fictitious name with the clerk of the county in which your principal place of business is located.
Nothing needs to be filed with the CA Secretary of State.
Comply with the DMV’s requirements as outlined previously.

Corporations

As an owner of a corporation, you’ll have to set up your driving school consistently with the rules for corporations in California. 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.

The Secretary of State publishes the current processing times for a variety of filings.

You should take the following steps to set up a corporation in CA.

Check for name availability–this can only be done by mail using the form provided.
As you work to set your business up, you may reserve a name for up to 60 days. You may drop the form off in Sacramento or Los Angeles or mail it in to Sacramento. No online options are available. The fee is $10.
File the Articles of Incorporation with the Secretary of State. If you are close corporation–with no more than 35 shareholders–you should use this form.
You will need an Agent for the service of process–who can be an individual or corporation. Usually the owner of a small business is the agent.
Set up your bylaws, directors, and other matters.

Limited Liability Company (LLC)

You may be able to set your driving school up as an LLC in California. 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.

LLCs must register and follow other requirements of California’s laws:

Check to see if the name is available. You may check online for yourself, although this is not an official name availability check.
As with a corporation, you can reserve a name for up to 60 days.
File Articles of Organization with the Secretary of State–the fee is $70.
While you do not need to have an Operating Agreement, you probably should–but it does not need to be filed.
As with a corporation, you will need a Registered Agent.
Within 90 days of submitting your Articles of Organization, and every two years thereafter, you need to submit a Statement of Information. This can be done online or by mail.

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 California, 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

California’s Driving Schools seem to have a great deal of freedom to provide driver education and training, as long as the instruction fits the State’s requirements. While the number of forms needed to get started is rather large, it’s a one-time only experience.

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The Driving School Curriculum in Delaware

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