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VTLC2006
01-09-2012, 09:31 PM
Do you LLC guys register your truck under the LLC business name? Is the truck under the business name and insurance? What if you want an employee to drive the truck? What if a "crew Leader" is driving the crew around. What is the legal way? This question also pertains to taxes and depreciation. Thanks

GreenI.A.
01-09-2012, 10:18 PM
Depends on your state. Here if you are using the vehicle for commercial purposes and the vehicle does not have commerical plates your auto insurance can deny the claim, if you were not at fault for causing the accident you may be found at fault by default for driving an improperly insured vehicle. Here you also need commerical plates to have any type of business lettering/signage on your vehicle or you can be ticked $150 each day. This even goes for guys delivering pizza with a magnetic Domino's sign on their cars roof, but police don't typically enforce the signage regulations on them, but if they cause an accident it does not go through their personal auto policy, but instead goes to Domino's GL.

My insurance policy alows all employees on my payroll to drive my vehicles. Before they can be authorized to drive, I must provide my insurance company with drug test results and their driving record, this is not law here but something I do to lower my insurance rates. At first I had only select employees authorized to drive for better insurance rates, but I found it worth it to have all emplyees drive so that I can send a laborer to run an errend if needed.

As far as taxes and depreciation, if the vehicles are under the LLC everything is a business expence (talk to a CPA in your state), but if you only have vehicles in the company name and nothing registered in your own name then the IRS and State Dept of Revenue will expect you to claim a percentage of the vehicle use as personal usage. There are two ways to do this-
1. you can claim the percentage of vehicle cost relevent to the percentage of miles the vehicle was used for business. For example if you put 30,000 miles on the vehicle during the year and 20k is business and 10k is personal then you would claim 66% of vehicle cost as company expense.
2. You can claim the full cost of the vehicle as a business expense and then claim the percentage of personal use as a portion of your pay, and be taxed accordingly on your personal taxes.

An option you may have is to buy a s**t box and register and insure it personally, just put the minumum insurance on it. Many smaller companies go that route, then the owner can drive the company vehicle full time and claim all of the miles with out raising IRS suspicion. Again check with a CPA from your state

dmk395
01-10-2012, 09:04 PM
Can't use just lease the vehicles to the LLC?

fl-landscapes
01-10-2012, 09:44 PM
Can't use just lease the vehicles to the LLC?

Why bother with the extra paper work. Purchase the trucks through your company and simply list drivers with your insurance company or buy blanket driver coverage. If you lease it and remain owner I would say all liability protections provided to you personally by being an llc would be out the window so what's the point?
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dmk395
01-11-2012, 04:59 PM
Why go thru the point of selling your vehicles and get wacked with all the other state taxes and transfer fees.......that's my point

GreenI.A.
01-11-2012, 07:56 PM
Why go thru the point of selling your vehicles and get wacked with all the other state taxes and transfer fees.......that's my point

That may not be an issue, some states allow you to transfer ownership of vehicles when you establish a new business. DMK - MA is one of these states. There are certain stipulations, ownership of the vehicles must be transferred within 30 days of establishing the business, the vehicle must be tittled in the same name as the business owner. Other states my differ with this, but check around. When I was establishing my business and looking for insurance one of the insurance agents i got a quote from told me about this. I went with a different agent and that one had never herd of this. When I went to the registry, the ladies at the counter even had to look into it to find an answer. Apparently it is not something people know about and of course MA will take the extra tax revenue when ever possible. But like I said other states my differ with what they allow.

dmk395
01-13-2012, 12:19 PM
So your saying I can transfer ownership at no cost to me?

GreenI.A.
01-13-2012, 12:29 PM
So your saying I can transfer ownership at no cost to me?

In MA, you do not need to pay the sales tax a second time. Just pay title fee, and registration for commercial plates. So long as it is being done within a certain number of days of establishing the LLC/Corp. Do you have commercial plates now?

dmk395
01-13-2012, 09:56 PM
GreenIndustry-
I have commercial plates on all vehicles and trailers. Any idea what it costs ballpark to do this? I was recently left with this dilemna and was going to have the insurance package add a rider to the policy for short money....just trying to see which way to go..thx

grass-scapes
01-14-2012, 11:14 AM
in NC, I was able to transfer a truck from my personal name to the business name. I don't think there was a time frame. I think I paid a transfer fee of $35 dollars. Any vehicle I purchased since that time has been in the business name. I am not an LLC, I am s-corp.

I carry commercial insurance on all business vehicles. Now, before I became an S-corp, I was a sole prop. I had nationwide insurance. I added a "business use" rider on my policy. I had an accident and did not have a problem getting the claim paid. It was a substantial claim, too. I totaled the other vehicle and did about 7000 damage to mine. (damn rain right after a fresh layer of asphalt....20 ft enclosed trailer pushing my truck, downhill. I was only travelling at about 20 mph as I was preparing to turn. needless to say, I t-boned the other vehicle when the truck wouldn't turn or slow.)

I own a personal vehicle so the IRS doesn't bother me. My accountant stated the same thing about personal vehicles to me a long time ago so I have always owned a vehicle. Its not a beater, though. That would be a good way to go, but if you get audited, you should still be able to prove that you use it on a semi-regular basis. Having a car and using it are two different things to the IRS. You DO NOT want to get on the IRS Poop list.