Transportation · LLC guide · updated
How to start an LLC for a limo and passenger transport company
Carrying passengers for pay is one of the most heavily insured activities in transportation, and claims after an injury are large. An LLC holds the vehicles and the charter contracts, and federal passenger carrier rules attach to the company that holds the authority.
Our registered agent is optional: $74.25 a year, the same at renewal. Questions first? Ray or Vinny picks up at (954) 470-8356.
- EIN
- USDOT number
- Passenger authority
- CDL with P
- Commercial auto
Limo and Passenger Transport Company businesses in the U.S.
Source: U.S. Census Bureau, County Business Patterns 2022 (NAICS 485320) and U.S. Census Bureau, Nonemployer Statistics 2022 (NAICS 4853), the latest U.S. totals.
Why limo and passenger transport company owners form an LLC
Passenger injury
Injury claims from passengers are the main risk, and federal minimum coverage reflects it.
Events and alcohol
Wedding, prom and party trips bring alcohol-related incidents that drivers must handle.
Vehicle financing
Limos, sprinters and buses are expensive; finance them in the company's name.
An LLC keeps the company's debts and claims away from your personal assets when you run it as its own business: its own bank account, contracts signed in its name, and no mixing of money. It does not cover your own negligence, and lenders often ask for a personal guarantee. Insurance comes first.
Licenses and registrations for a limo and passenger transport company
Federal items link to the agency's own page. State and local rules vary, so pick your state at the top for your state's business portal. Tick items off as you go; the list remembers your progress on this device.
- We do thisForm the LLC and get its EINAlmost every registration above asks for the company's legal name and EIN, so this comes first. We file the LLC with your state for $123.75 plus the state fee, and can get the EIN for $41.25; the IRS also issues it free online.
Insurance and taxes to plan for
Insurance
- Commercial auto liability
Set by FMCSA, your state and the venues you serve; usually the largest expense.
- Hired and non-owned auto
Covers vehicles you rent or affiliate in for big events.
- Workers' compensation
For chauffeurs you employ.
Taxes
- Tips and gratuity
Mandatory gratuities on invoices are generally treated as service charges, which are wages when paid to drivers, not tips. Get payroll set up correctly. IRS / agency page
- Vehicle depreciation
Heavy passenger vans and limos can qualify for accelerated depreciation.
When you farm a job out to another operator, use a written affiliate agreement and confirm their authority and insurance. If they have a crash on your booking, the customer will name both companies.
Forming the LLC itself: 7 steps in every state
- 1. Check the name
- 2. Name a registered agent
- 3. File with the state
- 4. Sign an operating agreement
- 5. Get an EIN
- 6. Open a bank account
- 7. Keep it in good standing
The filing office, fee and yearly report change by state. Open your state's step-by-step guide.
What it costs to form a limo and passenger transport company LLC
| Cost | File it yourself | With Vermilion Vitez |
|---|---|---|
| State filing fee (paid to the state) | $35 to $520 | $35 to $520 |
| Filing service, operating agreement included | $0 | $123.75 |
| EIN from the IRS | $0 | $0 yourself, or $41.25 if we get it |
| Registered agent, per year (optional) | $0 if you serve yourself | $74.25 |
State fees as charged at our checkout. Industry licenses, permits, bonds and insurance above are separate and set by each agency. Checkout shows the card processing fee before you pay.
Frequently asked questions
Do I need FMCSA authority for a limo that stays in my state?
Not federal authority, but your state or city likely licenses it. Federal rules start when you carry passengers for pay across state lines in a vehicle designed for 9 or more people, or for 16 or more people in some cases.
What insurance does a limo company need?
At least $1.5 million for interstate vehicles seating up to 15 passengers and $5 million for 16 or more under federal rules, plus whatever your state, city and airports require.
Does my chauffeur need a CDL?
Only for vehicles designed to carry 16 or more people including the driver, and then with a passenger endorsement. Smaller limos and sprinters often fall below that.
Should each vehicle be in its own LLC?
Some larger operators do that, but it only helps if each company has its own insurance, accounts and records. For most new operators one LLC with good insurance is the right start.
How much does it cost to form an LLC for a limo and passenger transport company?
Your state's filing fee ($35 to $520 depending on the state) plus $123.75 if we file it, with the operating agreement included. Industry licenses, bonds and insurance are extra and set by each agency.
Is this page legal or tax advice for my limo and passenger transport company?
No. It summarizes public rules in general terms, with links to the agencies that set them. For your situation, talk to a licensed attorney or CPA, or book a free call with us.
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Ready when you are
Have us file your Limo and Passenger Transport Company LLC
$123.75 plus your state's filing fee, with the operating agreement included. Checkout shows the full total, card processing fee and all, before you pay.
Rather talk first? Call Ray or Vinny at (954) 470-8356.