Co-op Dealer License Legal Structure
AutoIncome's Dealer License Legality - State Level
AutoIncome's Co-op Dealerships are setup as Limited Liability Companies (LLC's), within the state 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 as such. This structure affords each member all the legal rights associated with the LLC, including the right to buy and sell cars for a profit. Each AutoIncome Co-op used car dealership is properly setup, maintained and meets all state level requirements to operate as a LLC.
AutoIncome's Dealer License Legality - DMV Level
Every AutoIncome Co-op used car dealership meet's all the legal requirements, as mandated by the state DMV, for obtaining a used car dealer license. This includes any dealer courses that the manager or members must take, any bond or insurance requirements, as well as any location requirements. AutoIncome works closely with all of our Co-op Used Car Dealerships to ensure their compliance with all DMV's regulations and laws. Each member is required to follow state statues and laws when conducting their business and are promptly removed from the used car dealer license if any violations occur on their behalf. All titles are held at the Co-op used car dealership's location and all used car sales are conducted in accordance with any and all governing laws.
AutoIncome's Dealer License Legality - IRS Level
Every Co-op Used Car Dealership within AutoIncome maintains accurate bookkeeping records in accordance with GAAP. All member's sales are registered and reported to the IRS accordingly. All of the LLC's within AutoIncome's system elects partnership status, both with the Secretary of State and the IRS. This allows for all income generated by each member to flow directly to the individual for tax reporting purposes. Each member opens and maintains a corporate bank account under the Tax ID Number of the LLC and uses that bank account to conduct his or her used car business. A tax return is filed each year at the company level with each member being responsible for his or her own tax return separately.
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