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Start a car rental business

Start your car rental business.Get your taxes and fleet covered.

Our office forms your company in any state, gets your EIN, tracks each vehicle in QuickBooks Online, runs payroll and files your income taxes, and our agency quotes fleet insurance.

Start my car rental businessGet an insurance quote

Reviewed by Orkun Ozkaymak, CPA, MBAClients in all 50 states and abroad

$500company setup, EIN included
50 + DCstates we form companies in
1 officeformation, taxes and insurance
2011preparing taxes since
Step by step

How to start a car rental business

  1. 1

    Form your company and get an EIN

    Our office forms your LLC or corporation in the state where you form and gets your EIN, so vehicles are titled and insured in the company name.

  2. 2

    Register for sales and rental taxes

    Many states, counties and cities tax short-term vehicle rentals. Register with your state's revenue department and any local tax office before your first rental.

  3. 3

    Insure the fleet

    Our agency quotes commercial auto liability and physical damage written for rental use. Some states also require rental companies to file proof of insurance with the motor vehicle agency.

  4. 4

    Get your local business license

    Apply for the business license your city or county requires, and check zoning for the lot where you store and hand off vehicles.

  5. 5

    File rental taxes and keep books

    File your rental tax returns each period. Our office tracks each vehicle in QuickBooks Online, runs payroll and files your federal and state income tax returns.

Filings and prices

What our office files for you.Prices shown before you send.

Pick what you need on the request form. Ozfield's fees are shown here; government fees are passed through at cost.

  • Illinois sales tax registration and resale certificate IllinoisIncludes the Illinois automobile renting tax account.
    $250
  • City of Chicago business license IllinoisThe city fee is $500 or $1,000 for 2 years depending on the license type, paid to the city.
    $179
  • Payroll and state unemployment setupPayroll accounts, state unemployment registration and your first payroll.
    Quoted by our office
Company setup is $500 plus the state fee, EIN included.
The request form adds your filings and shows the full estimate as you go.
Build my estimate
Insurance from the same office

Coverage in place on day one.Quoted by our agency.

Check the coverage you want on the request form and our insurance team sends quotes from multiple carriers. Nothing is bound without your OK.

Start my car rental businessGet a quote only
  • Commercial auto
  • Physical damage
  • General liability
  • Garagekeepers
After you open

The filings that come every year.

Our office keeps these on your calendar so nothing is missed. How we work with car rental companies →

Illinois tax returns

20th of each month. Monthly sales and rental tax returns for most filers.

Local rental taxes

Monthly or quarterly. City and county returns where you rent vehicles.

Business return

March 15 or April 15. Entity return with fleet depreciation and vehicle sales.

Questions

What new owners ask us.

Something else on your mind? Call 773-536-9272 and our office will help, in English or Turkish.

What taxes does a car rental company collect?
Most states charge sales tax or a special rental tax on short-term vehicle rentals, and many counties, cities and airports add their own rental taxes or fees. Longer leases often follow different rules. Rates change, so confirm the current rates with each tax office where you rent vehicles before you set your prices.
Can I rent cars on Turo with an LLC?
Yes. Many hosts form an LLC to hold the vehicles, keep income separate and track depreciation. Peer-to-peer platforms collect some taxes in some states and leave others to you, so check which ones you file yourself. Our office forms the LLC and keeps your books for each vehicle.
What insurance does a rental fleet need?
A rental fleet needs commercial auto liability written for rental use, and most owners also carry physical damage for the vehicles. Personal auto policies exclude rental use. Our agency quotes fleet coverage and provides the proof of insurance that your state or rental platform may ask for.
How should I depreciate rental vehicles?
Rental vehicles are business assets, and you may be able to use bonus depreciation or Section 179 in the first year. The best choice depends on your income and plans for the fleet. Our office runs the numbers each year before filing your return.

Ready to start your car rental business?

Answer a few questions, see your estimate and send it to our office.

Start my car rental business773-536-9272