Q: How many cars can I sell through an LLC?
I live in SC and I currently sell cars on the side as a hobby and I always stay under the limitations in regards to how many I'm allowed to sell without a dealers license. I got a bit curious today and I have a standing LLC under my name and was wondering if technically since my business is seen as a separate entity, in terms of liabilities, could I not also sell a certain number of cars through the LLC as well or are there still restrictions since I hold 100% ownership.
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A:
In South Carolina, the number of cars you can sell without a dealer's license is typically limited, and this limit applies regardless of whether you're selling them as an individual or through an LLC of which you're the sole owner. Generally, if you're planning to sell more than a specified number of vehicles within a 12-month period, you'll need to obtain a dealer's license. Operating through an LLC won't usually allow you to bypass this requirement, as the limitation often pertains to the individual behind the sales, not just the entity through which the sales are conducted.
That said, using an LLC might offer other advantages, such as limited liability protection and potential tax benefits. However, it's unlikely to enable you to sell more cars than allowed under state law without a dealer's license.
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