Dealerships are set up as Limited Liability Companies (LLC's), within the states they are located. One person is listed as the manager and is responsible for the daily operations of the dealership. Individuals are then added as members and listed with the Secretary of State. This structure affords each member all the legal rights associated with the LLC, including the right to buy and sell cars for profit.
Auto License Pro makes sure that all dealerships partnering up with us meet all legal requirements as mandated by the state DMV for obtaining a used car dealer license. This includes any Bond, Insurance or DMV course that needs to be taken by members or managers. Auto License Pro closely monitors all dealership partners within our company to verify and ensure that they are in compliance with all DMV regulations and laws. Each member is required to follow state statues and laws when conducting their business and are promptly removed from the dealership if any violations occur on their behalf.
Each Dealership within Auto License Pro maintains accurate bookkeeping records in accordance with their state requirements. All member sales are registered and reported to the IRS. All of the LLC's within Auto License Pro will give you a tax reporting document at the end of each term. Each member will be responsible for his or her own tax return individually.