How To Structure Your Turo Business

[@ClintCoons]

Would you like to learn more about this topic and talk to someone? Schedule a free consultation here: aba.link/c5637b

[@teddymeyer6525]

Content is above and beyond. Glad I found you. So resourceful

[@tonyaberman3669]

I’m an insurance agent and I own an Insurance Agency. Turo is not car sharing. It’s a car rental business. That’s why most insurance companies do not allow it. Right now Travelers is the company insuring vehicles for Turo. And when you put your car in your business name, it cost more in premium. The only way to get insurance when the car is registered in a business name or LLC is business insurance. Business auto insurance cost a lot more than personal insurance. When hosting on Turo you will need two policies. One with Turo when the vehicle is rented and your personal or business auto policy when it’s not.

[@ClintCoons]

Thank you for your comment. This is very helpful.

[@ostertori2010]

Can you please explain why other companies do not insure vehicles which are used for turo, if it is covered by turo while rented out?

[@tonyaberman3669]

@@ostertori2010 because they consider it a rental car business. You would have to find an insurer that insures rental car companies or dealers that rent out cars.

[@stephencrook6584]

If you register the car in a Trust name, you can still have personal insurance, correct?

[@caribbeangirltv9468]

But if you are just starting out, do you think that is ok to open A? S corp or a C corp if you only have one vehicle

[@SoulBrother_1]

This is actually a very informative video!! Most give very generic useless info. Thank you for this.

[@ClintCoons]

Glad it was helpful!

[@chemepo]

What naics code should I be using for my car rental LLC?

[@CianTv1]

Have a Turo business that’s anonymously owned in the state of Florida and it’s owned by two trusts. One I control and one my fiancé controls. It’s a multi-member business in the state of Florida, so it has charging order protection. The cars in to r anonymously owned as well. Is it worth me making a new business to then lease the cars etc. as u explained when I already have all of this protection?

[@timh2788]

Thanks. Very high quality content, very informative and they way you break it down and speak is very helpful.

[@ClintCoons]

I appreciate that!

[@OAlexUsa]

Should the LLC that owns the vehicles be an Wyoming anonimous LLC? Would i still be able to finance vehicles in that case?

[@ClintCoons]

No, it's doubtful you can finance with a WY LLC unless you live in WY.

[@OAlexUsa]

@@ClintCoons hi clint, sorry to reach out to you here, I just could not find your email nowhere, feel free to delete my comment when you read it. I hired platinum and business starter package because of this video, and i am trying to put this strategy in place but your advisors are very reluctant to follow or even discuss what you are suggesting here. I talked to 2 nice gentlemen, but I couldn't understand exactly the structure they suggested and when i tried to refer to this video i got a "either you do it my way or there is no trust and you need to leave, I won't be answering questions about videos..." i don't know how to respectfully request for someone that understand what you are talking about here without hurting anyone's ego, please advice if possible thank you.

[@ClintCoons]

@@OAlexUsa HI, do you mind emailing my team at [e-mail] so we can discuss this further? Please mention this KZbin video and mention this question needs to be sent to my assistant named Patti. In addition, feel free to DM me on my Instagram profile so we can discuss this further. I would love to hear from you. Here is my IG profile. instagram.com/clint.coons/

[@OAlexUsa]

@@ClintCoons thank you. i have sent the email and also messaged you on your IG. I appreciate the follow up.

[@pibaltop]

Just starting a Turo business. Am I doing this approach correctly... If I open an LLC, purchase a car/cars under that LLC, with a line of credit from that business account. The ownership of the car is under my LLC business. Then I wouldn't need to worry about transferring ownership from personal name and the banks questioning the ownership? Is this the right line of thinking? Now I just need to find a low interest business loan, not sure that it even exists.. Then open the 2nd LLC to control the operating side/money intake side of business.

[@ClintCoons]

Yes

[@JonNey-pc3lw]

very helpful. you should do more videos on this business!

[@ClintCoons]

I will!

[@Sidthekid67]

Clint, Happy I found your channel, I'm just sponging up the info. Keep up the good work.

[@ClintCoons]

Welcome aboard!

[@Zee_350]

Wow! I appreciate all this information. Sir. Thank you 🙏

[@CianTv1]

My Turo business is anonymously set up. Will getting my seller’s permit/ wholesale license (so I can buy cars at auction) ruin that?

[@ClintCoons]

Not sure on that one.

[@chaplainbeats7028]

Couldn’t you get the wholesale license under a business?

[@CianTv1]

@@chaplainbeats7028 the problem is publicly displaying my name publicly after doing that

[@heywedo]

Very helpful. Saved video to watch again!

[@ClintCoons]

Awesome! Thank you!

[@heywedo]

Ok, just watched again. If I'm looking to finance a vehicle for turo, would you suggest purchasing it with personal credit, then transfer it to a trust or purchase it with a trust?

[@lovinglifeenergy]

Great information!!! Thank you!

[@Prosper-fp5ex]

we ended up creating separate entitiy as recommended by AA, however, the FL Motor vehicle does not allow us to register the vehicle under LLC since there is a lender involved. any rhougjts? thank you M,

[@ClintCoons]

Ask if you can transfer it into a trust. If so then we should switch out your LLC for a land trust.

[@Kennethfrances224]

Clint you have amazing advice, THANK YOU

[@ClintCoons]

Thanks for watching!

[@samsonswaroop]

If I have a paid off

[@ClintCoons]

Correct.

[@khackney86]

Great Video! Happy you did this video because I was thinking about going into Turo.

[@Eric_In_SF]

Do a lot of research. It’s actually a lot of work for the money. And sometimes the margins are slim

[@HippieP629]

@@Eric_In_SF Not an easy semi-passive income as advertised, eh?

[@Danielmakesithappen]

Thank you so much for this, Clint!

[@ClintCoons]

My pleasure!

[@mauricioavila9200]

I already have a holding S-corp where I bought the car. I am creating an LLC for the biz and to who I am going to lease it. Would that be the correct idea?

[@ClintCoons]

Yes

[@stephanienazario8481]

how was the process of buying the car under a s corp? i heard it is diffcult ? thanks

[@ClintCoons]

@@stephanienazario8481 Interesting. I have never encountered any issues with buying a vehicle in an entity.

[@furiangameclips]

would you recommend the asset holding company be an Scorp and the rental company be an LLC? Scorp for tax purposes..

[@ClintCoons]

Business an S-Corp and the asset holding a disregarded LLC

[@furiangameclips]

@ClintCoons thanks for your reply and great info. Can the asset holding LLC that leases the vehicles to the Scorp, also own the Scorp? Im in FL so was considering having the LLL out of Wyoming and the Scorp in FL.

[@irannia1]

Thank you, great info! I was looking for advice as I own a small fleet and all my cars are registered under my llc. Now if i open a new llc to "lease" my cars, does both llc's need to be filed as S or C corp?

[@ClintCoons]

The vehicle LLC will be disregarded. Only the operating LLC is treated as an S-Corp.

[@CianTv1]

When u have two businesses, a leasing business and Turo business and a car in a trust and that trust is owned by the leasing business, rather than leasing the car to ur Turo business directly, can I lease the car to a separate trust that is owned by my Turo business? That way if I have 10+ car’s they don’t all show up registered under the business’s name publicly

[@ClintCoons]

Yes you can

[@chaplainbeats7028]

So I want to buy my fleet with a bank and register it under a trust? Then do I lease the car to my LLC? Trying to understand this better.

[@furiangameclips]

this is exactly what i was looking for. but now you made me think of another question since you brought it up, what are the tax implications/benefits of the llc that owns the vehicle, leasing the vehicle to the llc that is actually renting the vehicle? is there some kind of write off there for the cost of leasing from the owner LLC? also im assuming there would need to be documents drafted to show all the terms of this?

[@ClintCoons]

Yes it is taxable on one side and deductible on the other.

[@furiangameclips]

@ClintCoons thank you for your reply! So i would need to file taxes for each company separately, correct? So i can show very little earnings in the company that rented the cars on turo because of the lease expenses. But then i would be showing basically just the lease 'earnings' on the company that owned the vehicle(s) and was leasing them to the other company.

[@ClintCoons]

@@furiangameclips Correct

[@canyouspellophthalmology]

Appreciate this!

[@NathanJudson]

What about if you own the vehichles do you still recommend a trust? Or should you do the dual entity with two llc’s?

[@ClintCoons]

I prefer dual entity for asset protection.

[@CianTv1]

When you register ur Turo car that is owned anonymously to the state, do u give the state ur personal address, or will that become public info?

[@ClintCoons]

Use a virtual business address.

[@Darrell_lewis_massage_realtor]

Everything you give the state becomes public record.

[@seattledubsix7109]

Awesome Ideas, appreciate your knowledge!

[@ClintCoons]

Glad you like them!

[@Kenndy16]

How do you put your LLC as the registered owner if you have a personal auto loan (not business auto loan) in the car?

[@ClintCoons]

Great question, to assist you further, I highly recommend you request a free 45-minute consultation to discuss this with my team so we can provide you with an answer that is unique to your situation. Visit: aba.link/c5637b

[@sk8guit]

When the Vehicle LLC that is the legal owner leases the car to the Business LLC that is the registered owner, does there need to be a contract drawn up for the lease between the two LLCs? Does money flow between the two LLCs? Or is it just understood that way and that is how it explained if asked?

[@ClintCoons]

Yes you would need a lease agreement.

[@CianTv1]

I'm debating whether or not I should make my WY holding company the trustee of my personal property trusts that I'll be putting my Turo cars in for my Turo business. If I have 10 cars and 10 trusts and everything points back to my WY LLC and they would be able to see all of those trusts, wouldn't they think I had deep pockets? If I used a lawyer to be my trustee and they had the same problem, wouldn't this make them want to come for me?

[@ClintCoons]

Good point. I would not use my holding co as the trustee. Possibly use a separate WY LLC as your trustee.

[@CianTv1]

@@ClintCoons I have a FL LLC that is owned by my WY LLC holding company. Should I use that as the trustee? I’d rather not make a WY LLC just for this purpose. Would the FL LLC be my best option as trustee?

[@ClintCoons]

@@CianTv1 Yes that is probably the preferred move.

[@thesinghhh]

Thank you Clint for the video However as the margin on the TURO is already slim, having 2 separate LLCs then filing taxes is gonna be a lot expensive. Not worth it.

[@ClintCoons]

Nav, Thanks for watching and the comment.

[@benjawanpermpoon5774]

Thanks, very high content and information

[@ClintCoons]

Glad you think so!

[@jarrettgilliam3159]

The double entity only works if you own the car right? What about a fleet management llc. Would that take liability away from the holding company?

[@ClintCoons]

Yes and Yes

[@lalabunnybunbun6372]

I THINK A BUSINESS TO BUSINESS LEASE AGREEMENT TUTORIAL WOULD BE A VERY POPULAR VIDEO BECAUSE I LOOKED ALL OVER THE INTERNET AND THE ONLY VIDEO I COULD FIND IS SOME PODCAST DUDE PREACHING ABOUT TAXABLE INCOME AT THE DINNER TABLE

[@hunzybunzy808]

What about using a c-corp?

[@ClintCoons]

Absolutely.

[@CianTv1]

My brother is worried about the legal implications of purchasing and registering a car in the name of a trust and having the trustee (a business) resign as trustee shortly after and not updating ur registration to the successor trustee with the state. If an accident happens with the car and the business has already resigned, could I get in trouble for doing this and misleading lawyers and what not?

[@ClintCoons]

The registered owner is liable which is the trust. A trustee is not liable unless it was negligent.

[@CianTv1]

@@ClintCoons I’m specifically talking about not registering the successor trustee as the new trustee with the state so the public knows. Another lawyer said I could get a fine if I do that

[@ClintCoons]

@@CianTv1 Hmm. Trusts are not registered with the state so I do not know why he told you that.

[@CianTv1]

@@ClintCoons for the car registration. My trust owns the car. Business 1 is listed as the trustee of the trust in the car registration with the state. He’s saying that if I resign and give the trustee position to the successor trustee and not tell the DMV, I’ll get a fine if they ever found out somehow (a lawsuit) because I’m supposed to update the trust info with the car registration. I’m assuming ur line of thinking is that it’s much better to get a possible fine then to lose all of ur assets in ur business in a lawsuit. I think that’s valid and makes sense

[@DimitriZen]

Since Turo is providing additional liability insurance, does this help?

[@ClintCoons]

Yes it does

[@wosby_limited]

Should the LLC owning the vehicles be a holding company that also owns the operating LLC?

[@ClintCoons]

No you would want to keep the property separate from the business.

[@windmillcode]

you should do more that just asset protection, how to setup your software startup of software consulting business

[@Myhands14]

This is awesome content thanks

[@ClintCoons]

Glad you enjoy it!

[@zombeast23]

100 Percent The Best

[@rogernolasco5571]

Help I need to do this. I need more info on how! Please please

[@ClintCoons]

If you would like a FREE 30-minute consultation, you can request one here - aba.link/30minSession

[@chriss1175]

Can this work if I have my cars registered in Montana Holding LLC, and a Wyoming/Delaware operating company?

[@ClintCoons]

You would make the MT LLC the legal owner and your business LLC will be the registered owner.

[@debbieobrien2400]

So

[@CianTv1]

if u have your turo car in a personal property trust and have ur leasing business as the beneficiary of that personal property trust and that trust is the LEGAL owner of the car. Then u have the TURO BUSINESS LLC (a separate LLC), be the registered owner. Should u register the car through a trust if it's just the registration and NOT legal title? If someone was to want to sue u, if they only saw that the Turo business LLC only held registrations for cars and not legal title, wouldn't that discourage them from trying to sue cause that wouldn't count as actually owning assets?

[@ClintCoons]

Are the vehicles paid off?

[@CianTv1]

@@ClintCoons yes. That’s why the leasing business would hold title and not the actual Turo business

[@chromerunner6094]

Great value!

[@CianTv1]

Is the idea of getting a lawyer to be the trustee of ur trust and then having them resign that the creditor would first try to contact the trustee BEFORE actually suing ur business? Because what if my creditor sees u as my trust’s trustee and then does an asset search on u and finds a million things and then thinks u’r the owner of my business and then decides that the business has deep pockets and decides to pursue a lawsuit for whatever reason?

[@ClintCoons]

Yes.

[@stephenlipetzky1021]

How much do you lease the car to the operating LLC for?

[@ClintCoons]

You would need to come up with a fair market rent but keep in mind the rental is unique and could warrant a premium

[@statetechguru4804]

Sorry I am confused here. You are supposed to own the vehicle is what they say on their website.... you cant have a loan, lien or lease on the vehicle... "Have a valid registration and insurance policy in your name." Would you strategy still work in this case ?

[@ClintCoons]

In your name or the business name? The entity owning the vehicle will carry insurance and be listed as the registered owner.

[@FatalFarrow]

Clint, one scenario I didn't see quite covered is if the car was financed through a business loan, so the car is already in the name of my LLC. In this scenario, can I create a separate Biz LLC and lease the car to the Biz LLC so that I don't do Turo business in the asset holding entity where the car is financed? If not, what are my options so that I can separate doing business where the car is owned?

[@ClintCoons]

You will need to check with your local DMV.

[@premiumnetwork1953]

Can someone please explain 4:45 i totally understand if I out right own my vehicle I set up two LLC's. But how do I "lease" my owned vehicle to my second LLC which is my business?

[@ClintCoons]

Simple lease agreement

[@premiumnetwork1953]

@@ClintCoons wow. i just saw your response. so how would i lease my payed for cars (assets) to my second LLC which both LLC'S i own?

[@fetyanalkhashlook1327]

thank you so much for this, i have one question please, i have 1 car under my S corp. no.1, how can i lease it to my S corp. no.2? i live Virginia, thanks again

[@ClintCoons]

You enter into a lease agreement between the two companies. Keep in mind you will need to register the car under company #2. Thus, company #1 is the legal owner but company #2 is the registered owner.

[@onyshiaharris5449]

@@ClintCoonsHi! Quick question. I also live in Virginia, for those of us with cars < $10k, can we complete a lease agreement with our personal vehicles to our LLC?

[@Knowledgedad]

Thank you so 1 LLC per car ?

[@ClintCoons]

Not at all. 1 LLC for all of the cars.

[@whoim3553]

HIii! I love ur vid!!! I wanted to start a car rental business but I found there are more than 15 hosts in 1miles around and they are all below 50trips...does that mean the market is saturated?... I'm super worried about financing a car but no one is booking it....

[@ginalolo4373]

I'm glad I found your contents!

[@ClintCoons]

Gina Lolo Thanks for watching.

[@phygmintof]

So, if you are financing and then pay off the vehicle.... you would create an LLC to legally own the vehicle? I just want to make sure I am following you correctly. Thanks!

[@ClintCoons]

Yes, that is correct

[@zombeast23]

Thumbs Up A +

[@DoulDistrict]

Thank you for the information Clint! You explain and present it to me in a way that allows me to comprehend. Quick question though. I want to try to deploy this tactic, but plan on using Navy fed. How would I go about transferring the title to the trust if I get it with a personal loan with Navy fed. After the DMV sends me the title, they’ll want to be added to the it as the lien holder. Do I transfer it to the trust before I add them as the lien holder ?

[@Kenndy16]

Did you figure out? I don't think you can change the register owner of that car to your LLC name if you have a personal loan on that car. That's why he didn't answer you I think.

[@Knowledgedad]

Do I file my LLC as a C or S corp ? what is the difference?

[@ClintCoons]

S pass any income through to its owners to be taxed at their tax rate and C is taxed as a flat 21% tax rate on its income. Choosing what to file would require an analysis of your over all plan.

[@tommymc27]

I have a question about the holding llc leasing the cars to the biz llc, does it have to be a legal lease and how much should i lease the cars for? Becuase i want the bulk of the cashflow to stay in the biz llc, correct?

[@ClintCoons]

Yes it has to be a written lease but you do not necessarily need the bulk of the income in the operating entity because the operating entity income is subject to self employment taxes.

[@D3master4]

Clint, thank you so much for this incredible information. I've been curious how Anderson Advisors would approach this (I'm currently a Platinum member). I have some follow up questions: #1 I have a loan on one of my vehicles in my name. Based on what you've described, I should be moving that to a trust owned by an LLC's (California) property trust. How can that be done if I don't have the title yet because the title is held by the lender? I would assume that I would only be changing the registration with the DMV from my name to the name of the trust. #2 Will the loan company continue to report payments in my name or in the name of the trust? My goal is to get the loan out of my own name (debt to income ratio problem) so that I can buy another vehicle.

[@ClintCoons]

If you can (some states do not allow this) change the registered owner to your trust. Leave the payment reporting on the loan as is.

[@D3master4]

@@ClintCoons Clint, I'm trying to understand is this the best option for a California Turo business. In California, I'll have to pay the franchise tax for both LLCs.

[@ClintCoons]

@@D3master4 Yes you do. Ugh

[@jayyau9232]

I am the legal owner of the car, I open an llc to lease my vehicle to the llc which becomes the registered owner. I get sued and they get my llc bank account and my insurance, but could they take my vehicle since the llc is not the legal owner? Here’s where I am confused. If I open 2 llc’s like you suggested, one as the legal owner, the other to lease to to become the registered owner. If I get sued, they get my bank account, my insurance, but they can’t get the car from the other llc as the legal owner is what you are implying.

[@ClintCoons]

The LLC must be the legal owner. If your vehicle is financed then this strategy does not work for holding title to the vehicle.

[@sidra_games4551]

If the car isn't that expensive - say $10k value (fully owned no lease or loan) - does it maybe make more sense to keep it in the same LLC? The extra costs and admin of the second LLC may not be worth it if the asset itself has way less value than the one in your example?

[@ClintCoons]

I would.

[@droidbehavior257]

@@ClintCoonsyou would open a 2nd LLC for a car bought in cash? (No lender) Or you would just keep it to the single LLC?

[@ClintCoons]

@@droidbehavior257 I would keep it in the same LLC

[@buckbeezi6263]

But the trust provides no liability protection. So do you lease the car out to an LLC and make a 2nd LLC as the beneficiary?

[@ClintCoons]

yes that would work.

[@michaelburke3701]

But i thought Turo has insurance coverage so how could someone come after you, your LLC or S/C corp?

[@ClintCoons]

Attorney go after anything with a pulse. :)

[@michaelburke3701]

Thanks Clint, this is great information that i needed. So if my cars still have am lean holder, ie my credit union, do I still need to apply the "LLC/S-CORP" Model? Cars owned by the LLC leased by the S-Corp?

[@ClintCoons]

@@michaelburke3701 It Probably will not work with the vehicle-owning entity but definitely use the S-Corp for the biz side.

[@michaelburke3701]

@@ClintCoons ​ So at a minimum I can have Turo or Uber/Lift, etc... deposit my earnings into the S-Corp and still get the Coporation Tax Break

[@ClintCoons]

@@michaelburke3701 yes

[@rumrunner8260]

If I have a loan out on the car am I able to transfer the registered owner and the loan would still be under my name? Or would I have to talk to the bank and transfer the loan as well?

[@ClintCoons]

Depends on your state. Check to see if you can transfer the registered owner.

[@rumrunner5853]

@@ClintCoons Thanks!

[@snoozeCTRL]

Awesome

[@jacktv2109]

For the dual LLC situation do I literally need to pay for and own two LLC’s? 1 that just holds car assets and 1 that conducts car sharing business on Turo?

[@ClintCoons]

If you are looking for the protection I described. Also this only works if you own the vehicle otherwise just use one entity.

[@jacktv2109]

@@ClintCoons awesome thanks so much 🙏

[@cordura98]

If you could do another video and track the flow of the money for someone who owns the vehicle outright, that would be helpful. In addition, given the two LLC’s, would you need to crest two S corporations. Thank you

[@fdhall]

What's the best way to get the vehicle (I own it outright) into my existing WY LLC? Could the PPT strategy be used to have more flexibility of acquiring personal insurance instead of more expensive commercial insurance? Thanks in advance.

[@ClintCoons]

Yes that could work

[@Albitrage]

​@ClintCoons how would you go about titling and registering at the DMV? If you own the vehicles outright, should the holdings company be the lien holder or lessor and create a lease agreement with the operating company and have them on the title as the registered owner?

[@lalabunnybunbun6372]

excuse me SIR PLEASE HELP ME HOW DO I LEASE MY VEHICLE TO MY OTHER BUSINESS. I have made the lease agreement and I already have a lease agreement that I found online but how do I figure out how much to lease it to myself for? If I don’t know how much profit I will make from the vehicle yet? Also, does it cause any issues if I can’t make those payments to the lesser company?

[@lalabunnybunbun6372]

Also, do I have to report the leasing agreement to someone or do I just file it in a cabinet somewhere to show a lawyer in case I get sued?

[@lalabunnybunbun6372]

(I work for my fathers used car dealership and we want to rent some of our vehicles to turo)

[@lalabunnybunbun6372]

Lesser company is our own company

[@marcelinocaro8657]

Why is a C or S corp necessary for the LLC?

[@ClintCoons]

You do not want your income to be all taxed as active. The S-Corp allows you to divide your income between income subject to employment taxes and distributions that are not subject to this tax.

[@anowarparvaj3735]

Nice video OTP 🌹🌹❤️💯

[@asciilogic]

Hi Clint. Excellent video. Should Owner LLC be a sole proprietorship? I understand Business entity should be S or C corp…but what about owner? Thanks.

[@ClintCoons]

Yes that would work.

[@asciilogic]

@@ClintCoons thanks. Much appreciated.

[@Colektibols]

@@ClintCoons would it be better if its under holding corp instead of sole proprietor?

[@jeffreygreer8782]

My insurance company does require commercial insurance. How would you go about leasing the vehicle? Is there is a contract or forms you should fill out between the two companies? Would the business leasing the car ever make income? Should you transfer money in its bank account or something? I really do appreciate your response!

[@ClintCoons]

Yes, Yes, and Yes. You must treat this like you would any transaction with a 3rd party. If you wanted to lease a vehicle from Hertz what would Hertz require? Rental agreement (lease agreement) and compensation.

[@xjinit]

Thanks for informative video! An issue I see when switching over from personal ownership to another entity (LLC) is having to pay sales tax again, am I correct on that?

[@ClintCoons]

It would depend on your state. In those situations we use a personal property trust to hold title the the PPT is owned by a LLC.

[@xjinit]

@@ClintCoons let's say California?

[@jeffreygreer8782]

Does transferring car to LLC have any effect on your Taxes? What about buying or selling a car under a LLC is there something to know? What about car insurance? How would you go about setting up a dual entity and leasing the car to the other business? Thanks for answering my questions in advance!

[@ClintCoons]

It has no effect on your taxes but it could impact your insurance. Best to contact your insurer and inquire.

[@jeffreygreer8782]

@@ClintCoons My insurance company does require commercial insurance. How would you go about leasing the vehicle? Is there is contract or forms you should fill out between the two companies? Would the business leasing the car ever make income? Should you transfer money in its bank account or something? I really do appreciate your response!

[@armobyzantine5881]

Hello Clint is a serious LLC worth it if the Turo company is leasing all vehicles from the leasing company and has very minimal assets

[@ClintCoons]

Not if you are leasing the car.

[@armobyzantine5881]

@@ClintCoons awesome so I guess that says me a lot of headache

[@drkarmakid]

do you even need liability insurance with such a structure?

[@ClintCoons]

Absolutely.

[@armobyzantine5881]

Personal property trust strategy sounds kind of like one of your previous real estate videos will you take it out of the LLC sit-up individual Ilc and make it a disregarded pass through entity and tax filings information never changes

[@ClintCoons]

Correct

[@HarpreetSingh-sy6vn]

I like he say, you gotta wrap your head around this lol

[@shannar4512]

Hello, thank you for this important information. Can I purchase a car through my e-commerce LLC, create a Rental car LLC then lease that car to the rental car LLC for Turo? How would I go about structuring this the right way if its possible?

[@ClintCoons]

Yes you can!

[@shannar4512]

Would you recommend doing a DBA for the Turo for now?

[@Myhands14]

Do we need to create the two LLCs (1 normal - 1 s corp) if we just have one car?

[@ClintCoons]

Depends on your income. Maybe start with one entity until the income increases.

[@Colektibols]

When you lease Vehicle to LLC Business, how do you pay The LLC Vehicle owner? you send all the earnings ? Which LLC pay Tax then?

[@ClintCoons]

Yes and these earning pass through to you as the LLC owner.

[@kylen.6742]

What if you have an S-corp for a business that’s existing and you do a second business DBA but are under the same S-corp ?

[@ClintCoons]

Correct

[@kylen.6742]

@@ClintCoons correct what? That’s the right way to go? That’s what I was going to do. I already own an auto repair under an S-corp. was going to add a DBA for rentals with Turo

[@ClintCoons]

@@kylen.6742 Yes, you can do that if you want to keep it under the same business but for liability protection, you might consider setting up a disregarded LLC that is owned by your S-Corp and run the Turro out of the LLC.

[@kylen.6742]

@@ClintCoons perfect thank you. I’ll talk to my accountant/tax ppl

[@leoneltirado]

Why do I chose to elect an s-corp or c-corp over sole proprietor?

[@ClintCoons]

An S-Corp will save you 15.4% in employment taxes on part of your income if properly structured. Sole proprietorships are the least efficient structure for businesses. If you would like a FREE 30-minute consultation, you can request one here - aba.link/30minSession

[@mdkawsarali1357]

Nic

[@armobyzantine5881]

Would this turo strategy work with a serious LLC ? Because a lot of renters have many vehicles filing LLC fees for each vehicles every year is expensive very expensive

[@ClintCoons]

Yes

[@armobyzantine5881]

Should both LLC's be under the series LLC?

[@ClintCoons]

@@armobyzantine5881 One series LLC with separate cells.

[@NTG9876]

Great video and so informative. One question: even if you don't own the vehicle outright, why not still create the dual entity (one for holding, one for operations), since eventually, as cars are paid off, they may build some equity. Does that not now become an "asset" that a creditor could go after if you are using the lone llc?

[@ClintCoons]

No I think just one entity is fine.

[@amieerothrock1839]

Worst customer service ever. We have 2 of our cars out and now have to report them stolen. 5 days of repeated phone calls no help.

[@bigwavemike]

Clint- you're the man! Quick follow up- I live in Massachusetts where it costs $500 to start an LLC and $520/year every year thereafter to file my annual report. For the purpose of conversation- let's say I'm making $10K/yr off one car on Turo that I own outright. The vehicle is worth $25k, and would be the only business asset. Based on your system I'd set up two LLC's, costing me $1,040 a year, to protect a $25k asset. I'm not sure this is a good value proposition. Am I thinking about this correctly?

[@ClintCoons]

I would agree on the two LLC structure but consider using just one for your business so you have protection in the event of an accident.

[@dna1149]

In Colorado, it's only $10 per year for the Annual Report. Just curious where you live that it's $520.00. That is expensive.

[@owenfogs9237]

I am just starting out and have 1 car under my personal name. If it’s placed into an LLC, what type of insurance can you expect to get and would cover you while you drive it to get it cleaned, service etc when it is not rented on Turo? Will an insurance company cover 1 car in an LLC, have heard people say you need a fleet before getting coverage.

[@ClintCoons]

You will need a commercial policy. Also, if you have loan be sure to check if you can transfer title (registration) if you are not the legal owner.

[@Myhands14]

@@ClintCoons Do we need to create the two LLCs (1 normal - 1 s corp) if we just have one car?

[@ClintCoons]

@@Myhands14 It depends on how much business you are generating. One LLC could be fine if you are just starting out.

[@Mr.Harris2007]

Great video! Its easier buy your cars straight out cash, with no leasing or lien holder. Open one LLC.

[@ClintCoons]

Yes

[@Mama-rh7br]

Why not a corporation? What are the differences in llc and inc.

[@ClintCoons]

You could but an LLC has fewer formalities and it provides charging order protections for its member.

[@pepecebolla69]

Great video! Question: if I do own the vehicle outright, why do I need the dual LLC structure? Can't I keep the *legal* ownership under my own name, and then set the *registered* owner as the business LLC? That way, I have the same asset protection benefits but with a simpler (single LLC) structure. Is it because an LLC is required in order to *lease* the vehicle? Or is it because of something else? Thanks!

[@pepecebolla69]

To answer my own question: I think it's because you also want to protect the assets from someone suing me personally (not the business LLC). I guess it's less likely that someone will sue the ownership LLC since it just sits there and does nothing, so it's hard to claim it wronged you in some way.

[@ClintCoons]

Correct

[@ClintCoons]

@@bennyn36 If you get sued personally then the creditor can come after your personal assets. If you have an LLC you will have charging order protections to prevent a creditor from taking your LLC.

[@ClintCoons]

@@bennyn36 No only against your personal assets.

[@familyguy6844]

it's a lot harder, business vehicle insurance and finance rates are SO much higher

[@dkoberhauser]

Awesome content as always, Clint. But it does raise a couple of questions: We are looking at purchasing an RV with financing and renting it on platforms like RVezy when we are not using it. I assume this would apply just as it does for car sharing platforms like Turo. My questions is, once the Trust is created and the LLC assigned as the beneficiary, how does the income that the Trust produces by renting out the vehicle flow to the LLC and then to flow to us?

[@ClintCoons]

Have the rents paid to the LLC directly then take a distribution.

[@zendannyy]

So forming 2 LLC's one for the car, one for the biz. OR A trust(with the car registered here) with an LLC within it Is this a correct recap?

[@ClintCoons]

Yes.