Vehicle leasing is the long term rental (or use) of a motor vehicle for a specified period for an amount agreed upon for the rental. It is generally offered by dealers as an alternative to vehicle purchase but is widely used by companies as a method of acquiring (or using) vehicles for businesses, without the usual cash expenditures. The main difference in a rental agreement lies in the fact that after the main term (usually 2, 3 or 4 years), the vehicle must be returned to the car leasing company or purchased for the residual value.
Vehicle leasing offers benefits to both buyers and sellers. For the buyer, lease payments are considerably smaller as compared to payments on a car loan. Sales taxes are due only on each monthly payment and not immediately on the total purchase price, as in the case of a loan. Once you’re ready to start your car rental or leasing business (which often go together), follow these steps to make sure your business complies with the law, and avoid wasting time and money as your business grows. So you’re ready to start your car rental or car leasing business? Follow the steps below and you’ll have a great chance at succeeding.
STEP 1: Plan your business
A clear plan is essential to succeed as an entrepreneur. Some important topics to consider are:
- What are the initial costs?
- What is your target market?
- How long will it take for you to break even?
- How will you name your company?
Choosing the right name is very important. We recommend that you check if the business name you choose is available as a Web domain and secure it quickly so no one else can take it.
STEP 2: Form a legal entity
Establishing a legal entity such as an LLC saves you from being personally liable if your security company is sued. Remember to use a registered agent service to protect your privacy and stay compliant.
STEP 3: Register for taxes
Before you can open a business, you will need to register for various federal and national taxes.
STEP 4: Open a professional bank account
Recording your various expenses and sources of revenue is essential to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies the filing of your annual tax return.
STEP 5: Configuring Enterprise Accounting
Recording your various expenses and sources of revenue is essential to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies the filing of your annual tax return.
STEP 6: Obtain the necessary permits and licenses
The lack of necessary permits and licenses can result in heavy fines or even the closure of your business.
STEP 7: Subscribe business insurance
Insurance is highly recommended to all business owners. If you hire employees, workplace accident insurance may be a legal requirement in your state.
STEP 8: Define your brand
Your brand is what your business stands for, as well as how your business is perceived by the public. A strong brand will help your company stand out from the competition.
STEP 9: Establish your web presence
A professional website allows customers to learn more about your company and the products or services you offer. You can also use social media to attract new customers.
