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Should I buy a car in my Company's name or in my name?
I'm the Managing Member/Owner of an LLC. I've been considering buying a small car for personal use however I also need a vehicle capable of towing a few thousand pounds worth of equipment for my LLC. Needless to say I can't afford 2 cars & based on the rates that uhaul & other similar companies are charging it will be much cheaper to simply buy a truck/SUV & trailer than it would be to rent.
I will put anywhere from 600-1,200 miles on the vehicle each month for business purposes however I also will be using the vehicle as a daily driver for personal use. There will be a max of 700 miles per month for personal use.
1. Is it better for me in terms of taxes to put the vehicle in my name or in the name of my LLC?
2. If I put it in the name of the LLC could I have someone who has no connection to the LLC co-sign?
The 2 people that have answered:
1. Yes, that was what I said. I am buying 1 vehicle, that was the point of the question.
2. Not exactly, I actually have a CPA that helped me form the LLC and that advises me but he charges per hour, I am simply trying to gain some info before I speak with him to save myself some time (money).
just get one vehicle. THE ONE for the company. Buy it in your name; YOU ARE the company!1 year ago
You need professional advice. You formed an LLC without any knowledgeable person helping you. You've put the future of your business in the hands of an amateur (you).
"Putting the car in someone's name" is a classic alarm that a person doesn't have a clue what they're doing.
You're talking about whether the LLC buys and owns the car, or whether the individual does. And you don't understand the difference.
You can't just "put it in the name" of one or the other.
There are about eight factors that will determine whether it's better for the LLC to purchase and own the vehicle or whether the vehicle should be purchased and owned by an individual. If you don't know any of those eight fac tors, run, don't walk, to find competent tax advice from a professional.
Why did you form an LLC in the first place? Who is helping you comply with state LLC law and federal tax law? Please don't say you're just winging it.