How to Buy a Car with your LLC despite Trump Administration

0:00 Most people don't realize this, but you can actually buy a car in your business name, even if you're just getting started as a business owner. Yep, that's correct. You don't have to buy a car personally and put it on your own personal credit. In this video, I'm going to break down a step-by-step process on how to buy a car in your business name, the difference between buying and leasing a car through your business, and which one might be the best option for you, how to legally write off your car expenses, and even the cost of the car because it's an asset for your business. Hi, welcome back to the channel. My name is Innie and this is my life for debt, where I try my very best to make business simple and easy to understand with no fluff. Also, don't forget that I'm giving away $1,000 every single week to one lucky

0:46 subscriber. So, subscribe, turn on your notifications, and drop a comment down below so you can win, too. So, if you're ready to stop using your personal credit for your business purchases, then let's dive [Music] in. Now, first, let's talk about why you would put a car in your business name in the first place. As a business owner, everything you do for your business can be a business write off. That includes the car that you drive for your business purposes. I'm not a tax professional, and this is not legal or tax advice, but from my experience as an entrepreneur. You can save thousands of dollars by putting your car in your business name. Now, here's why. You can write off expenses like gas, maintenance, tires,

1:32 insurance, and even repairs. You can lower the taxes you owe because the IRS allows deductions for business use of your vehicle. And you can protect your personal credit by keeping large purchases under your business instead. So even if you're just starting your business while still working a job, you can still put a car in your business name and take advantage of the benefits. This is one of the easiest taxsaving strategies that most business owners don't even know about. Step one, set up your business properly. Before you can buy a car in your business name, your business needs to be set up correctly. Now, here's what you need to do. Register your business as an LLC, escort, or CC Corp., get an EIN number from the IRS. It's completely free. And

2:17 have a professional business phone number, an email address. And then you need to set up a professional business website. And then lastly, you need to open a business bank account. These are the absolute basics. If you don't have these things in place, lenders won't even take your business seriously and you won't be able to get any type of financing. Now, once you have all of this in place, it's time to start building your business credit, which brings us to the next step. Step two is to build your business credit. To finance a car in your business's name without using any personal guarantee, you'll need business credit. Here's how you do it. First, you get a Dun's number. Go to Dun and Brad Street and register for a free Dun's number. This is the credit profile that lenders check when they're issuing business loans.

3:03 Start building with your trade lines. You need to open vendor accounts with companies like Uline, Granger, Quill. Buy small things for your business on credit and then pay them off. And then you get a business credit card. Even if it's a secure card, you need to start using it for business expenses only, then paying it off. Once you've done this for a few months, your business will have a credit history, which is exactly what the lenders need to see before they finance a vehicle for your business. Now, step three is buying versus leasing a car in your business name. Now that your business is set up properly and you've started building business credit, you need to decide whether you want to buy or lease a car in your business name. So, I'll break it down. Buying a car in your business name

3:48 has some pros and cons. The pros, you fully own the car once it's paid off. You can use it for business and take full tax deductions. You can build your business credit faster with an installment loan. However, there's some cons. You have larger monthly payments compared to leasing. The car will depreciate in value, and it can tie up your business's cash flow if you're putting down a large down payment. Now, let's talk about leasing a car in your business name. Here are some pros. You have lower monthly payments compared to financing. You can write off the full lease payment as a business expense. And you can drive a newer car every few years without worrying about depreciation. But here are some cons. There's mileage limits. So if you drive a lot, leasing is not going to be ideal. There's penalties for damage and wear

4:33 and tear that can add up. And you never fully own the car. You're just renting it from the dealership. So which one is better? It depends on your business's needs. Now, if you drive a lot, buying might be better. But if you want lower payments and better tax deductions, leasing is going to be the smarter move. Now, step four is financing the car in your business's name. When it comes to financing a car with business credit, most lenders will require a personal guarantee if it's your very first time. Now, a personal guarantee means that you personally promise to pay if the business cannot. However, after financing your first car in your business's name, you won't need a personal guarantee anymore. Here's how to get approved. Go to a dealership that

5:19 offers commercial vehicle financing. Make sure that your business has at least 3 to 6 months of bank statements showing revenue. Now, request that the loan is only reported to the business credit and not your personal. To do this, you need to have a strong business credit profile. And if you already have a strong business credit profile, you can finance a car with no personal guarantee at all. Now, here's a bonus. You can make money with your business vehicle. Instead of just using a car for your business, why not let the car make money for you? Here's a few ways to turn your business vehicle into an asset. First, you can list it on TRO, rent it out when you're not using it, or you can use it for business services like Uber, Lift, or delivery. You can advertise on your car. And if you do this right, your

6:05 business vehicle can pay for itself and even bring in extra income. So there you have it. That's how you buy a car in your business's name step by step. You set up your business properly. You build business credit first and then you decide whether you want to buy or lease. Finally, you go get financing. And if it's your first time, you will need a personal guarantee, but only that first time. Make the car work for you and generate income. Buying a car in your business's name is not impossible. It's one of the smartest moves that you can make as a business owner. If you found this video helpful, hit the like button, drop a comment below, and don't forget to subscribe for your chance to win $1,000 this week. I'll see you in the

6:50 next video. This is Indie signing off to your success.