Call Us Now: +1 (877) 330-2677 Live Chat: ONLINE NOW            
https://d25eic0jctudgb.cloudfront.net/images/site/general/answers-to-answers-8743d0241f5d8c2c996225efe2063f89
https://d25eic0jctudgb.cloudfront.net/images/site/headlines/articles.jpg-5fa541d76bf4be9016b1176147b3bc96

Buying car for business and personal needs

Asked by: Jonathan - 12 November, 2012
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/default.png-f1597c1da25f30f8c1a941405e8391c8 Have a business (LLC), and I plan to lease a car. I will be using this car roughly half the time for business and half the time for personal needs.

Who should I register as the owner of that car, myself or the LLC? What are the advantages and disadvantages of each scenario?
Answered by: Wray Rives - 12 November, 2012
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/1305.jpg-1cc483208a3f52a83fad915f0d4a4521 Jonathan,

How you register the car will not really have any impact on the tax deductions for business use of the car.

If your LLC is a single member LLC that you report as a sole proprietorship, there is no distinction between you and the LLC for tax purposes. Your tax deductions for the lease payments and other expenses of the vehicle will depend on the amount of business use of the car.

If your LLC is something other than a sole proprietorship, such as an S or C Corporation, then registering the car in the name of the LLC, but using it less than 50% for business can actually create some additional reporting requirements.

Comments:

We Want To Connect With You!

Social Media is increasingly the preferred method for businesses to connect with their clients, peers and customers. We are dedicated to share information and useful tools to help you grow your business.

Like us on Facebook, follow us on Twitter, and let's begin the exchange to Help Grow America One Business at a Time - starting with yours!

https://d25eic0jctudgb.cloudfront.net/images/site/general/payment-methods-footer-052a63251a379d6e5ece1801f07470fc Official PayPal Seal SecurityMetrics for PCI Compliance, QSA, IDS, Penetration Testing, Forensics, and Vulnerability Assessment