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Start an LLC or Corporation Online

Inc Authority is a reliable service for creating an LLC, offering the convenience of online setup at the same cost as doing it yourself. They provide comprehensive support and tools to ensure your business is set up for success.

Getting Started

If you’re considering a dealer license or any other business, you must decide whether to start it as a Sole Proprietorship, LLC, or Corporation.

It is important to make the right choice right now. Once you choose your business structure and start your dealership, you cannot change it without starting over and reapplying for a new license.

Create your LLC or Corporation Online

Use the form below to create your LLC for the same price as filing directly with the state, but with the added advantage of having the process expedited for you. All you need is the LLC/Corp and EIN number to get started. While additional upgrades are available to suit your specific needs, they are optional. We aim to provide a streamlined, efficient service tailored to help you start your dealer license successfully.

What Should I Choose?

A Sole Proprietorship (a indivudual person(s) or partners) is the easiest and least expensive option for individuals. However, it is also the most risky and restrictive as you become personally liable for your business. Dealer 101 does not recommend Sole Proprietorships.

An LLC (Limited Liability Company) is the most popular option for new dealers and small businesses. LLCs are simpler to organize and have flexible ownership, and liability protection.

A Corporation is more complex and suited for business founders who plan to sell shares of their corporation or expand into other countries.

Anyone listed on the dealer’s LLC or Corporation can be included on the dealer license. This allows them to attend dealer-only auctions to purchase and operate dealer inventory vehicles without paying sales tax or DMV fees.

Start your own LLC or Corporation today for only $70 using the form below.

Sole Propriestorships vs LLCs vs Corporations

CriteriaSole ProprietorshipLLCCorporation
OwnershipSingle ownerOne or more MembersOne or more Shareholder(s)
LiabilityPersonal liabilityLimited liability protectionLimited liability protection
Income
Taxation
Personal income taxPass-through taxationDouble taxation for “C” Corps. Pass-through taxation for “S” Corps.
Formation ComplexitySimple and inexpensiveModerately complexMost complex and expensive
Management StructureOwner/Operator managedFlexible managementManaged by a Board of Directors
Change People Listed on License?Not allowedYes – Members can be added or removed.Yes – Officers and Directors can be added or removed.
Access Dealer Auctions?Only the ownerAny LLC MemberAny Officer or Director
Use Dealer Plates for Personal Use?Only the ownerAny LLC MemberAny Officer or Director
Pay Sales Tax or DMV Fees?Not required when vehicles are purchased for resale & driven with dealer platesNot required when vehicles are purchased for resale & driven with dealer platesNot required when vehicles are purchased for resale & driven with dealer plates

Why Choose an LLC not a Corporation?

Choosing between an LLC and a Corporation depends on your business needs. Both structures allow you to obtain a dealer license, but an LLC offers more flexibility and simplicity.

An LLC can have unlimited owners (known as Manager or Members) and a Board of Directors is not required.

A Corporation provides a more structured setup with the ability to issue stock. Corporations tend to be more formal, requiring documented meetings to change how they operate.

Flexibility in Changing Managers & Members

You can add or remove members from your LLC and dealer license anytime. This flexibility is particularly beneficial if you expand your business and need to add new business partners as Members of the LLC.

To change or add directors to a Corporation, shareholders must host a meeting and vote on whether or not to make that change.

Protection and Convenience

Both LLCs and Corporations safeguard your personal assets by providing protection against business debts and liabilities, which a Sole Proprietorship does not.

Steps to Create your LLC or Corporation

1. Choose Your State and Business Structure

Select the state where your business will be based and decide whether you want to form an LLC or a corporation. This step is crucial as the requirements and benefits can vary by state.

2. Pick a Name

Fill out the form with your chosen business name and details. This includes selecting a name that complies with your state’s LLC naming requirements and providing the necessary information. Most states allow you to use any address such as your residence, accounts office, or business address.

3. Processing and Filing

Once you submit your information through our trusted partner, they will handle all the paperwork, ensuring everything is filed correctly and promptly. You’ll receive an email and physical copies of your LLC or Corporation documents in 15 days or less. Expedited processing is available if needed.

With your company officially established, you can proceed with various business activities, such as applying for your dealer license or running other business ventures.

Updated: 7/17/24