How To Transfer Your Car Into Your LLC (Get it off your credit report)

TLDR;

This video guides viewers through the process of legally transferring vehicle ownership to an LLC (Limited Liability Company) or purchasing a new vehicle in the LLC's name. Key points include:

• Steps for transferring an existing vehicle into your LLC's name or buying a new one under the LLC.
• Necessary documents like LLC articles, EIN confirmation, and proof of insurance.
• Importance of maintaining proper records and insurance coverage.

Transferring an Existing Vehicle to Your LLC [0:00]

To transfer a personal vehicle into your LLC, first determine which option you are pursuing: transferring an existing car or buying a new one. For the transfer, gather the required documents: LLC articles of incorporation, EIN confirmation letter, operating agreements, proof of insurance, current vehicle title, and, if necessary, a bill of sale. If your vehicle is financed, obtain your lender's written approval for the transfer.

The process begins with creating a bill of sale, documenting the sale of the vehicle to your business, typically for $1 to minimize tax implications. Gather the documents and visit your local DMV to fill out the title transfer form, listing your LLC as the new owner. Pay the associated transfer fees, which range from $20 to $50, and check if notarization is required. After approval, you will receive a new title with your LLC listed as the owner. Update your insurance policy to reflect the LLC's name and add the vehicle to your business's records for accurate accounting.

Buying a New Vehicle in Your LLC's Name [4:42]

When buying a new vehicle directly in your LLC’s name, ensure your business is properly registered with an EIN, bank account, operating agreement, and proof of good standing. Next, secure financing by contacting lenders that provide business auto loans. If your LLC is new, you may need to personally guarantee the loan initially.

At the dealership, inform them that you are purchasing under your LLC and sign documents as an authorized representative. You’ll need to register the vehicle at the DMV, bringing documents such as your articles of organization, EIN, proof of insurance, and purchase agreement, while paying the necessary registration and title fees. Once processed, the new title will show the LLC as the owner.

To maintain proper accounting practices, keep a mileage log using apps like Mile IQ, and consult your accountant about deducting expenses. Ensure consistency in business and personal use to protect liability. Review your insurance yearly to match your vehicle usage and confirm your LLC is listed as the primary insured entity. Following these steps ensures that your vehicle is properly registered in your LLC's name, enhancing liability protection, privacy, and professionalism of your business.