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

0:00 Today, I'm going to walk you through the entire process step by step so that by the end of this video, your car will officially be owned by your LLC legally, properly, and with no confusion. Whether you already have a vehicle in your personal name or you're planning to buy a new one through your business, I have you covered. This process protects your privacy, strengthens your liability shield, and even opens the door to new tax deductions that you might not be using. So, let's get started. Before we dive in, you need to know which path you're taking. So, there's option one, you already own a car personally and you want to transfer it into your LLC name. And then there's

0:46 option two where you want to buy a new car directly in your LLC's name. The process is similar, but the paperwork is different. If you already have the vehicle, you're transferring the ownership from you to your LLC. And if you're buying new, you're registering it under the LLC's name from day one. We'll start with transferring your existing car. Then I'll walk you through buying a new one later in this video. So before heading to the DMV, get these four things ready. You need your LLC documents. So that's your articles of incorporation. You need your EIN confirmation letter from the IRS. You need operating agreements, especially if you're the only member. And then you're going to need proof of insurance. So call your insurance provider and let them know that you're about to do a transfer of your vehicle from your name to your business name. Make sure you ask

1:33 them if you need commercial insurance or business auto policy. In every state, it's different. And in some states, you can even keep your regular insurance if you're a single member LLC. You're also going to need the vehicle title and the bill of sale. You need your current title and you may have to complete a bill of sale document to transfer the vehicle officially from yourself to the LLC. Just something that they can file. So, make sure you're checking with your lender if the vehicle is still financed. If there's still a loan on your car, then you need your lender's written approval for you to do this process. Some lenders will allow you to transfer and refinance. Others require you to pay it off first and then you can transfer it. If your lender is asking you to pay off the entire loan first, all you have to do is transfer your loan from that lender to a different lender that will allow you to do this process. Once you have these four things ready, you can

2:19 begin the transfer. So, let's walk through this together. Step one is you create a bill of sale. Even though you're selling your car to your own company, you still need legal record of the transaction. So, write up a simple bill of sale that says something like this. Basically, just documenting that you are selling your car to your business. I recommend you do it for $1. so you can save on the taxes on that sale. And then you just sign and date it. Now, step two is to gather your documents. So, you want to bring the bill of sale, the original title, your LLC's articles of organization, and your EIN confirmation letter, and a proof of your insurance under your business name. Now, step three is to visit your local DMV. Wherever you live, just go to your state's Department of Motor Vehicles. Tell them that you're transferring your vehicle from your personal ownership

3:04 into your business ownership. Fill out the title transfer form and it's usually labeled application for new title. In the buyer section, you write your LLC's name exactly as it appears on your formation documents. Now, step four is to go ahead and pay the fees. So, most states is going to be like $20 to $50 for the title transfer. If you're getting new plates or a new registration, you can expect to pay a little bit more than that. Ask if the state requires notoriization. For some states like Florida, Pennsylvania, you need to get that document notorized. Now, step five is to wait for the new title. Once approved, you'll receive your new title in the mail with your LLC listed as the official owner of your vehicle. Keep this in a safe space. It's your proof of ownership. Now, step six is to update your insurance. Call your

3:50 insurer again and confirm that the policy is now in the LLC's name. If you use the car for deliveries, client meetings, or transportation, then ask about commercial policies cuz then you can get that stuff covered, too. If you're a solo entrepreneur, some insurers will let you keep your personal policy with business use noted on there. Step seven is to update your business's records. Add the vehicle to your LLC's balance sheet and asset statement. Include the purchase amount, even if it was for $1, and add any outstanding loan amounts on there as well. That's liability. That way, your accountant can record depreciation and mileage deductions correctly. At this point, your vehicle is officially owned by your LLC. You've transferred the title, the updated insurance, and recorded the

4:37 asset, meaning your personal liability is now completely separated from that vehicle. Now, let's talk about buying a new vehicle in your LLC's name. If you're buying a car directly through your business, here's how to do it correctly. So, step one is to make sure your LLC is ready. So, your business needs to have an EIN, a business bank account, an operating agreement, and proof that your LLC is in good standing. You can print this out directly from the state website. Your second step is to secure financing. So, you want to contact lenders that offer business auto loans, such as Bank of America. They have a business advantage auto program. You can also check out PNC Bank's commercial auto program. And then there's obviously Alli Bank. They do the best job when it comes to commercial auto lending. If your LLC is brand new,

5:22 you might need to personally guarantee the first loan, but that's because you have a brand new LLC. But as you build your business credit, you'll qualify for no personal guarantee financing later on. Now, step three is to buy and register the vehicle at the dealership. Let them know that you're purchasing this under your LLC. There's a whole different process. So, now you'll be signing as the authorized representative of the business and not as an individual. Use your business bank account or financing in the LLC's name and then head to your local DMV to register right away. You need your articles of organization, your EIN, and your business insurance policy. You can also bring your purchase agreement from the dealership. Pay the registration fees, the title fees, and once all of

6:08 that is processed, the new title will show the LLC is the owner. And now it's congratulations. Your vehicle is officially under your business name. So, here's what you want to do next. You want to keep a mileage log. Track all your business miles using apps like Mile IQ or Everlance. You want to deduct expenses correctly. You can now deduct gas maintenance insurance and depreciation tied to business use. And then you want your accountant to help you decide between standard mileage rate or actual expense method. Then lastly is you want to keep your business use clean. If your vehicle is 80% business and 20% personal, keep that ratio consistent. Co-mingling your personal and business use can weaken your liability protection. Make sure that you

6:53 review your insurance annually each year. Confirm that your policy matches your usage and that your LLC is listed as the primary insured. And then that's it. If you follow this video step by step, you should now officially have your registered vehicle in your LLC's name. You've officially strengthened your liability protection. You've gained privacy and you've made your business structure more professional than ever before. If this video helps you, comment LLC below or car done so I know that you completed this. And if you have any questions about business vehicles, taxes, or credit, drop them below cuz I'll answer them. My name is Annie and this is my life or debt, where I make business simple and easy to understand. I'll see you in the next one. Peace.