How to Place Your Vehicle Under an LLC

Overview

• Guide to placing a vehicle under your LLC, explaining benefits and steps.
• Useful for those using vehicles for business purposes.

Transferring Personal Vehicle to LLC

Steps to Transfer

1. Prepare Necessary Documents:

   • Vehicle title
   • LLC's articles of organization
   • Proof of insurance
   • Bill of sale

2. Visit the DMV:

   • Bring all documents
   • Fill out a title transfer form
   • Possibly notarize authorization for transfer

3. Pay Fees:

   • Title transfer fee
   • Potential new license plate fee

4. Wait for New Title:

   • New title received in mail under LLC's name

Considerations

• If a loan exists on the vehicle, lender permission is needed to transfer title.
• Some lenders may require refinancing through an auto loan in the LLC's name.

Buying a Vehicle with Your LLC

Steps to Buy

1. Set Up a Business Bank Account:

   • Required to purchase through LLC
   • LLC must be officially registered

2. Shop at Dealerships:

   • Find the right vehicle and deal
   • Check for commercial vehicle departments at dealerships

3. Secure Financing:

   • Explore financing options
   • May need business or personal credit history

4. Purchase and Register the Vehicle:

   • Use LLC's information
   • Fill out registration and title application at DMV
   • Bring articles of organization and proof of insurance
   • Provide LLC's EIN number

5. Pay Fees:

   • Registration and sales tax
   • New license plates

6. Wait for New Title:

   • New title received in mail under LLC's name

Insurance Considerations

• May require commercial auto insurance, varies by state.
• Check insurance company and state requirements.

Benefits of Registering Under LLC

1. Additional Liability Protection:

   • Separates business and personal assets.
   • Protects personal assets in lawsuits involving the vehicle.

2. Privacy:

   • Vehicle registered under LLC’s name provides anonymity.
   • Offers privacy especially for luxury vehicle purchases.

3. Tax Deductions:

   • Eligibility for vehicle tax deductions for business use.
   • Easier paperwork and filing when under LLC.
   • Factors for deductions include vehicle size, weight, and business use.

Additional Resources

• Video links in description for more information on building business credit and tax deductions.
• Engaging viewers to comment and check additional resources.

Make sure to review other related videos for a deeper understanding of business vehicle deductions.

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Putting your vehicle under your LLC can be highly beneficial for a number of reasons. However, many people have no idea how to actually go about doing this. It is possible to put your vehicle under your LLC whether you bought it in your personal name, or whether you want to buy a new vehicle and put it directly under your business.

In this video, tax expert Karlton Dennis walks you through the process of transferring the title of a vehicle you already own to your LLC and buying a new vehicle through your business. He also explains all of the benefits of putting your vehicle under your business as opposed to owning it under your personal name.