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Private car sale receipt for organizations

many people want to put their vehicles under their LLC however they have absolutely no idea how to do this if you are in this category don't worry because in this video I'm going to explain step by step how to place your vehicle under your LLC correctly I'm also going to explain what the potential benefits of doing this are if you use your vehicle for business purposes this is one of the videos that you definitely don't want to miss without further Ado let's dive in gas now the exact way that you place a vehicle under your LLC is going to depend on whether you want to put a vehicle that you already own under your personal name into your LLC or whether you want to buy a new vehicle under your business's name let's talk about personal vehicles first a lot of people think that if they already own a vehicle under their personal name that they cannot transfer the ownership of it to their LLC even if they're using the vehicle for business well this is not the case in fact it is possible for most people to transfer ownership of vehicles under their names to their llc's so that their llc's own the vehicle as long as the vehicle will be used for business purposes if you want to do this then this is how you will get this done step number one prepare the necessary documents you will need several documents in order to transfer ownership of your personal vehicle to your LLC these documents can vary slightly from state to state but they usually include your vehicle's title your llc's articles of organization your proof of insurance and your bill of sale step number two is to go to your local Department of Motor Vehicles aka the DMV bring all the documents I mentioned in Step number one to the DMV with you warning you might have to wait in a long line everybody knows it can take a little bit of time to get served at the DMV so make sure you at least have a few hours planned out for this process once you're at the DMV you're going to have to fill out a title transfer form this is the document that will actually transfer the ownership of your vehicle to your LLC once you fill out all the information on this form submit the forms to the DMV some states will require you to notorized that you are the authorized signer for the private vehicle and the LLC so keep that in mind the DMV will then have you fill out an application or a new certificate of title on behalf of your LLC step number three is to pay the fees there will likely be a few fees that you have to pay at the DMV to complete the process the first is a title transfer fee there may also be a few other fees that you have to pay for for example if you want a new license plate many states will require you to pay an additional fee to establish a new license plate step number four is to wait for your new title in the mail under your llc's name that's right guys the last step is to just wait for the new title that will list your LLC as the owner of the vehicle it can take a few weeks to receive the new title information in the mail but as you can see it's a relatively simple process however be aware that if you do not own the vehicle outright and if there is a loan balance on the vehicle then you will have to contact your lender to get permission to transfer the title into your business not every lender will allow you to transfer the title of the vehicle to your LLC however many lenders will each lender has its own rules and requirements for transferring ownership of a vehicle to an LLC for example many lenders may require you to re Finance your personal loan by getting a new auto loan with your LLC and using that loan to pay off your personal auto loan so you will have to speak with them directly to find out what their rules are for this process let's talk about buying a vehicle with your LLC the steps for buying a vehicle with your LLC are similar to the steps to transferring the title to your business however there are some important differences here is how to buy a vehicle through your business and place it underneath your LLC or your S corporation step number one set up a business Mak account if you do not already have a business bank account for your LLC you need to make sure that you set this up first if you want to buy a car through your LLC then you need to do so through your llc's bank account your LLC must also be officially registered in your state step number two is to shop around at dealerships you might have to go to a few dealerships to find the perfect car don't just buy the first one that looks good consider at least a few different options and make sure you're getting the right car in the right deal also be aware that many dealerships have commercial vehicle departments that deal with with commercial vehicle sales specifically so you can check to see if the dealership you are looking at has these departments ahead of time if they do it can be helpful to contact them and let them know what you're looking for step number three is to secure your financing if you're going to be using a loan to finance the purchase of the vehicle then evaluate your financing options before choosing an option many dealerships offer financing and you can also get a auto loan through banks and Credit Unions the lenders may ask to see your business credit history or your personal credit history depending on the size and age of your business some lenders will not lend to brand new llc's so you might have to build up some business credit for your LLC before applying for a vehicle loan if you do not want to personally guarantee the loan then this is the process I have another video on building business credit if you like to learn more about that you can click on the link below in the description step number four is purchase and register the vehicle once you decide on a vehicle and secure your financing the next step is to actually purchase it and register it to register the vehicle you will have to fill out a registration and title application through the DMV so be sure to use your llc's information when you fill out these forms as the LLC will be the new owner this information can include the business's name as well as the address you should also bring your articles of organization to the DMV in addition of proof of insurance make sure you also have your llc's EIN number available because you will need to provide this information as well and step number five is to pay any fees the DMV May charge you fees for registration and sales tax Additionally you have to buy new license placeat for the vehicle you could have to pay fees for this as well so just make sure you pay any applicable fees before you leave in DMV as these are all business write-offs for you step number six is wait for your new title in the mail once the DMV processes all of the paperwork you will receive the new title for the vehicle in the mail and it should be under your llc's name can take up to a few weeks to receive the new title at that point the vehicle will be officially placed under your LLC but what about insurance I just want to make sure we take a second here to talk about insurance if you're planning to place your vehicle underneath your LLC and you may be required by your state to purchase commercial auto insurance plans whether or not you have to do this depends on the state you live in and how you'll be using your vehicle in your business many insurance companies will also only offer commercial auto insurance for certain types of business Vehicles so you should check with your state and your insurance company to see what the rules are for your specific business vehicle and business vehicle purposes for insurance reasons so what are the benefits of placing your vehicle under your LLC now that we've gone over the specific fix of how to place a vehicle under your LLC let's talk about why you might actually want to place your vehicle under the LLC here are the three reasons why many people choose to place their vehicles under their LLC number one additional liability protection for most people the main point of having an LLC in the first place is to limit their liability well if you're going to limit your liability for all other aspects of your business you might as well put your vehicle under your LLC so you can get liability protection for your business vehicle too right so if your vehicle is under your business business then in the event of a lawsuit only your business assets would be at risk of seizure not your personal assets like your home and your personal bank accounts so hopefully your business vehicle will never be involved in any accidents but if it is it is far better to have the extra liability protection if you do end up getting sued number two is for privacy if you register your vehicle under your llc's name instead of your personal name then it can provide a level of privacy as a result if anyone tries to search for the vehicle's owner they will only see the name of the LLC and not your personal name some people simply prefer higher levels of privacy than others and this could be because they are buying luxury vehicles for their businesses and there are certain security concerns depending on the status that they have whatever the reason behind it may be if you prefer to have a higher level of privacy when buying Vehicles then buying them under your business name can help to provide you with this and number three tax deductions many business owners who use vehicles for business are eligible for the vehicle tax deduction this is because when you use a vehicle for business purposes as long as the use is reasonable to your business ordinary to your business and necessary in the pursuit of business income then the IRS will consider many of these expenses associated with your vehicle as valid business expenses you do not necessarily need to place your vehicle under your LLC in order to qualify for the tax deductions however many business owners find it much easier from a paperwork perspective and a filing standpoint to put the vehicle under their LLC there are different rules for how vehicle deductions work for business vehicles and there are also different factors that can impact your deduction such as the size of your vehicle the weight of your vehicle and the proportion that you use it from business compared to personal use and much more I have other videos on my channel where I discuss these rules at greater length so feel free to check those out as well if you would like to learn more about the rules for deducting business Vehicles so what do you guys think about placing your vehicle under your LLC I want to hear your thoughts Below in the comments also I've included a number of key links and resources in the description below so if you want to work with my company or Advance your tax knowledge further please be sure to check out those links Below in the description that's all I got for today's video as always thank you so much for watching and if you could like comment subscribe and share this with someone else who's going to be riding off a vehicle in their business I look forward to seeing you on the next video cheers