Terrafugia say the cars, known as Transition, could go on the market in 2019.
The hybrid-electric vehicles will have two seats, luggage storage, rear-view cameras and a built-in safety parachute system.
And the cars will be able to fly at speeds of 100 miles per hour and can reach heights of up to 10,000 feet.
Transition will also have a ‘boost mode’ which will give the vehicle a small surge of power for extra speed when they are mid-air.
Terrafugia CEO Chris Jaran said: “Developing this new technology has allowed us to test several different mechanisms and generate process improvements along the way.
“We are at the critical point where we can implement the best design features based on years of flight and drive testing.
“This will improve function, safety and aesthetics for the optimal flying and driving experience.”
The vehicle will be powered by both a traditional internal combustion engine and a lithium phosphate chemistry battery, which Terrafugia says is “much safer than other lithium batteries”.
However, the company has yet to give a specific release date and have given no indication as to how much the flying cars will cost.
Although the vehicle adheres to National Highway and Traffic Safety Administration standards, not everyone will be able to get their hands on one.
To operate the flying car, drivers would need a pilot’s licence and a runway to get the vehicle off the ground.
A host of other companies are working on flying cars – most notably flying taxis.
British firm Rolls-Royce has unveiled plans to develop a super speed electric flying taxi which can carry up to five people and land vertically.
The engine maker’s futuristic design will also be able to fly at an astonishing 250mph for up to 500 miles as it aims to make cross country travel rapid.
It is 101 miles, as the crow flies, between London and Birmingham, meaning the flying taxi would take just 20 minutes to travel between the cities.
Taxi conglomerate Uber is also in the game. Earlier this year, the company revealed plans to release flying taxis in as little as two years and the firm hopes they will be driverless within 10 years.
The company previewed its Uber Air design models which are designed to taxi up to four people in the skies of major cities.
Uber unveiled the model, which is has been dubbed the vertical take-off and landing (VTOL) craft, at the Elevate Summit in Los Angeles.