Thread: Insurance help!
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Old 01-30-2014, 02:50 PM
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unkownfl unkownfl is offline
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Join Date: Mar 2009
Location: Orlando/Windermere
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Originally Posted by GreenI.A. View Post
States differ so much, be careful with your advise from people out of your area. Here if you get in an accident delivering pizza in your personal vehicle and your auto insurance finds out they can deny the claim and also the claim of any other vehicles/property you damaged. The driver would then have to submit to pizza huts insurance for damages. Similarly if you're injured in that accident, your insurance won't cover it here, they will pay per your policy but will then go after pizza huts gl for reimbursement. I can't see my earlier post so I don't know if I posted the link up there, but do a search of my posts for the term "Lexus" I've posted the story as a warning here a few times. Look for one of the older posts,reading it should convince most people to be 100% sure they are properly covered if using a personal vehicle for business

Here you can also transfer any property from your personal ownership to the company without paying a second sales tax. You just have to do the transaction within 6 months of establishing the llc

One big thing you will see different between the post I quoted and all mine on this subject, is I am sure to constantly say "here", the above poster speaks generally as the laws and/or regulations are the same across the country.
1) Didn't notify the carrier before hand of intended business use. I'll say this again an additional Umbrella policy.
Furthermore, Business owners who choose the LLC organizational structure often do so as a way of shielding personal assets from business liability. Because the LLC structure shields owners of personal liability for business debts and lawsuits, owners who retain personal ownership of a vehicle can protect that vehicle in the event someone sues the LLC. If a business owner sells her vehicle to the business, though, the car legally becomes private property owned by the business; under this arrangement, a successful lawsuit by an injured customer or a creditor may claim the vehicle as an award. Also, Get some sort of proof you notified the insurance agent of the intended use of the vehicle. They (insurance agents and brokers) have a policy that a consumer can go after if the agent didn't do his job right. It's called errors and omission coverage. Basically it's in the agent/brokers best intrest to provide you with the right policy as long as you give the full disclosure on the intended use(s) of the vehicle.

2) I stated to check within the OPs state about vehicle transfers. I will get further into this and say this, the IRS considers using the business vehicle for personal use as income and you will have to claim this if you register it under the business. There is no way in hell you're going to convince the IRS that your Duramax is 100% business use.

The IRS is obviously not going to vary state to state much. The liability of your company and exposure to your personal assets and vice versa are going to be at the State level mostly.
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