Starting a Turo car rental business can be a smart way to grow your income—especially if you already own a detail retail LLC. Combining both businesses allows you to cross-sell services and fully utilize your business license and resources. In this guide, you’ll learn how to legally and effectively add a Turo business to your existing detail retail LLC.
Step 1: Understand the Business Model
Turo is a peer-to-peer car sharing platform where you can rent out vehicles to individuals. It works like Airbnb for cars. If you’re already in the auto detailing business, adding car rentals through Turo complements your services.
Step 2: Check Your LLC Operating Agreement
Before you make any changes:
- Review your LLC’s operating agreement.
- Make sure it allows for expansion into car rental or “automobile leasing” activities.
- If it doesn’t, you may need to amend your LLC documents.
Step 3: Update Your NAICS Code and Business Purpose
- Visit your local Secretary of State website.
- Update your business purpose to include “vehicle rental” or “automotive sharing services.”
- Add or revise your NAICS code to include:
- 532111 – Passenger Car Rental
- or a similar code depending on your location.
- 532111 – Passenger Car Rental
Step 4: Get the Right Insurance
Turo provides its own insurance plans, but you’ll also want:
- Commercial auto insurance for added protection.
- Business liability insurance to cover any risks not included in Turo’s plans.
This protects both your detailing and rental operations.
Step 5: Register for Necessary Licenses
You may need:
- A commercial vehicle license
- A sales tax permit (if required in your state)
- A business license update reflecting the new service
Check with your local city or county business office.
Step 6: Separate Your Finances (Recommended)
Even under the same LLC, keep separate:
- Bank accounts
- Expense records
- Revenue tracking
This makes tax time easier and helps if you’re audited.
Step 7: List Your Vehicles on Turo
Once you’re set up legally and financially:
- Create a Turo host account.
- Upload your vehicle details and photos.
- Set pricing, availability, and delivery options.
- Promote your listings online or in-store.
You can also offer bundled deals, like a free detail after X rentals.
Key Takeaway
Combining your Turo business with an existing detail retail LLC creates a powerful auto-based business model. It allows you to serve more customers, utilize your existing license, and create new income streams—all under one legal structure.
Conclusion
Expanding your detail retail LLC to include a Turo car rental business is a smart move. With the right documentation, insurance, and strategic planning, you can grow your business and serve a broader audience without starting from scratch. Just make sure to follow your state’s legal requirements and maintain good financial records.
FAQs
1. Can I run Turo under my existing LLC?
Yes, if your LLC allows car rental services. You may need to update your operating agreement and business licenses.
2. Do I need separate insurance for Turo?
Turo offers plans, but commercial auto and general liability insurance are highly recommended.
3. Will I need to pay extra taxes?
You might need to collect and remit sales tax, depending on your state. Keep records and consult a tax professional.
4. Can I use my detail shop to clean Turo vehicles?
Absolutely! This is one of the biggest advantages—you can maintain your own fleet while keeping costs low.
5. Do I need a new bank account?
Not legally required, but keeping income and expenses separate for each business line is best practice.
