How to start a gas station

The main steps to open or buy a gas station and convenience store in the US: buying vs. building, fuel supply, environmental and tank rules, licenses, staffing and operations.

You found a pro tip Ask for at least a year of fuel volume and in-store sales by month when you evaluate an existing station. Seasonal swings can hide in an annual total.
In shortStarting a gas station usually means buying an existing station or building a new one, signing a fuel supply agreement (branded or unbranded), meeting federal, state and local environmental rules for underground storage tanks, getting fuel, tobacco, alcohol, food and business licenses as needed, and planning a convenience store, staffing and security that work around the clock. Margins on fuel are often thin, so the store, car wash or food service often matter as much as the pumps.

How gas stations make money

A gas station is usually two businesses in one: fuel sales and a convenience store. Fuel brings customers in, but the margin per gallon can be small and changes with wholesale prices. The store, with snacks, drinks, coffee, prepared food and everyday items, often provides a larger share of the profit. Some stations add a car wash, an auto repair bay, quick-service food or EV charging. Understand where the money comes from before you choose a site or a format.

Buy an existing station or build?

Buying vs. building
Option Advantages Risks to check
Buy an existing station Customer base, permits and equipment in place, financial history Condition of tanks and equipment, contamination history, remaining supply contract terms
Build new Choose the location and layout, new equipment High cost, long permitting and construction time, unproven traffic
Lease a station Lower upfront cost Rent, control over operations, supply terms set by the owner

For any existing site, environmental due diligence is essential: tank and line testing records, leak detection history, any past releases and the state of cleanup. Many buyers commission a professional environmental site assessment and have an attorney review the purchase.

Fuel supply: branded or unbranded

Branded stations carry a major fuel brand under an agreement that typically covers supply, image standards, card programs and minimum volumes, often for several years. Unbranded stations buy from independent suppliers or jobbers and have more pricing freedom but less brand recognition. Read supply agreements carefully: length, volume commitments, pricing formulas, image upgrade costs and what happens if you sell the business.

Environmental and tank rules

Most gas stations store fuel in underground storage tanks, which are regulated by the U.S. Environmental Protection Agency and by state programs that often implement and add to the federal rules. Requirements cover installation, leak detection, spill and overfill prevention, corrosion protection, regular inspections and testing, operator training and records. Owners and operators also need to show financial responsibility, such as insurance or a state fund, to cover cleanup costs if a release happens. Air quality rules may require vapor recovery equipment in some areas. Contact your state tank program early; it is the practical source of the rules you must follow.

Licenses and permits

Staffing a station

Many stations are open early to late or 24 hours, which means shift work, night shifts and weekend coverage. Plan for cashier and store staff, managers, food service if you have it and maintenance. Key employment rules include minimum wage (often higher at state or city level), overtime for non-exempt employees over 40 hours a week, meal and rest breaks where your state requires them and age limits for minors, including restrictions on hours and on selling alcohol or tobacco. See child labor laws, night shift work and rotating weekend schedules.

Safety and security

Late-night retail has particular risks: robbery, workplace violence and lone working. Common measures include good lighting, clear windows, limited cash in the register with drop safes, cameras, panic buttons, a policy of never resisting a robbery, training and, where risk is high, two staff on late shifts or a pass-through window. Some states and cities have specific late-night retail safety requirements; check yours. See our lone worker safety guide.

Operations to get right

Daily and weekly routines
Area What to track
Fuel inventory Daily tank readings and reconciliation against sales to detect leaks or theft
Cash Shift-end counts and drops; see our cash count calculator
Store inventory Fast sellers, out-of-stocks and shrinkage
Equipment Pump and dispenser checks, leak detection alarms
Staff Schedules, clock-ins, breaks and overtime
Compliance ID checks for age-restricted sales, inspection records

Financing and planning

Gas stations are capital intensive. Lenders, including SBA loan programs, will look closely at your experience, the site’s financial history, environmental reports and your business plan. Build a realistic plan with fuel volume, margins per gallon, store sales and margins, labor, utilities, card processing fees, maintenance and loan payments. Card processing fees can be significant on fuel sales, so include them.

A sample path (fictional)

An experienced convenience store manager buys a station on a commuter route. Before closing, his attorney and an environmental consultant review the tank records and test results, and he negotiates the transfer of the existing branded supply agreement. In the first year he keeps hours at 5:00 a.m. to midnight, adds a coffee and breakfast counter, uses two staff on the late shift for safety and schedules shifts around morning and evening commuter peaks.

How EZTime helps

EZTime helps station owners schedule early, late and overnight shifts, let staff swap shifts with approval and clock in at a tablet kiosk by the register. Labor rule alerts flag overtime and missed breaks, tasks handle opening, closing and safety checklists and approved hours are exported for payroll. See EZTime for retail.

Due diligence for an existing station

Get an environmental professional and a qualified attorney involved before you sign. See legal requirements for starting a business.

Scheduling round-the-clock staff

Long opening hours mean overlapping shifts, overnight coverage and frequent cash handling. Build schedules that avoid very long runs of nights, plan who can cover at short notice and decide whether overnight shifts need two people for safety. Record every hour worked, including shift handovers and cash counts. See 24-hour shift schedule, lone worker safety and shift handover.

Your first 90 days

  1. Review fuel margins and store sales weekly.
  2. Train every employee on cash handling and safety procedures.
  3. Check tank monitoring and compliance records on schedule.
  4. Ask regular customers what they wish the store sold.
  5. Compare labor hours with sales by hour and adjust schedules.

Gas station readiness check

Tick each item already handled.

0 of 6. Slow down. Due diligence on tanks and contracts comes first.

Frequently asked questions

Do I need special permits to run a gas station?

Yes. Beyond normal business licenses, expect underground storage tank registration and compliance, fuel tax and weights and measures requirements and licenses for tobacco, alcohol or food if you sell them.

Who regulates underground fuel tanks?

The U.S. EPA sets federal rules, and state tank programs usually implement and enforce them, often with additional requirements.

Is it better to be a branded or unbranded station?

Branded stations get brand recognition and programs but must meet supply and image commitments. Unbranded stations have more pricing freedom. Compare contracts carefully.

How do gas stations make most of their profit?

Often from the convenience store, food service and car wash rather than fuel alone, since fuel margins can be thin.

What is the minimum age to sell tobacco?

Federal law sets 21 as the minimum age to buy tobacco. State and local rules may restrict which employees can sell age-restricted products.

Should a gas station be open 24 hours?

It depends on traffic, staffing, safety and cost. Many stations start with extended hours and adjust based on sales by hour.

Where to go next

Managing hourly employees as you grow

As soon as you have hourly staff, two jobs take more time than most owners expect: recording hours accurately and building a schedule everyone can see. Under the federal Fair Labor Standards Act (FLSA), employers must keep accurate records of hours worked and pay non-exempt employees overtime for hours over 40 in a workweek, and some states add daily overtime or meal-break rules. This is general information, not legal advice.

A simple setup that scales

  • Have staff clock in from their phone, a shared tablet or a wall time clock, so every punch is recorded automatically.
  • Publish the weekly schedule in one place and let employees request shift swaps and time off.
  • Export approved hours to payroll at the end of each pay period instead of retyping timesheets.

EZTime covers all three with a time clock app, employee scheduling and payroll-ready exports, from $2 per employee per month. See pricing and start a 14-day trial.

Keep reading

Labor rule alerts

Set overtime thresholds and weekly hour limits in EZTime and managers get an alert while there is still time to change the schedule. Pricing starts at $2 per employee each month, with a $20 monthly minimum.

Disclaimer: This guide is general information only and is not legal, environmental or financial advice. Tank, licensing and employment rules vary by state and locality. Consult the EPA, your state tank program, licensing agencies or a qualified professional.