Truck in Co's name

Discussion in 'Business Operations' started by Mykster, Feb 20, 2002.

  1. Mykster

    Mykster LawnSite Senior Member
    Posts: 668

    Was wondering if anybody has signed their personal truck over to their Company's name? Thinking about it but not sure.
     
  2. smithf36

    smithf36 LawnSite Member
    from Indiana
    Posts: 61

    We currently have our trucks in our personal names and the business reimburses us for the truck payment, etc. The bus. pays for all of the maintenance, fuel, ins. ect., but we pay the payment and the bus pays us back. According to our accountant, this method is ok as long as we are consistant on how we are doing things. Once the trucks are paid off, the bus. can keep making those pmts to you as a source of income. I have considered signing them over once they are pd. for, but I'll figure that out in a few months when one is pd off. Interested in hearing what everyone else has to say.
    Joe
     
  3. LawnLad

    LawnLad LawnSite Senior Member
    Posts: 738

    If you're depreciating them, they should be in the companies name I believe. Otherwise, as Smithf36 said, you can "lease" them to the company. Having a 'formal' agreement between yourself and the company in writing isn't a bad idea. No one will probably ever see it, but you never know if you get audited, blah blah.
     
  4. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    As far as I know, when I went went fom dba to LLC, everything including account receivables, account payables, trucks, trailers, equipment, all hand tools, etc. now belong to the company.
     
  5. Barkleymut

    Barkleymut LawnSite Bronze Member
    Posts: 1,117

    I have my truck under my name and personally pay for gas, oil, tires, everything. The business pays me 33 or 34? cents for each mile. This was from the recommendation of my accountant.
     
  6. jc1

    jc1 LawnSite Bronze Member
    Posts: 1,517

    The big question to ask is how is your business set up? It you are a corp or an LLC you want the truck in the company name and owned by the company so that it keeps any liability seperated from you and your company. We recently formed an L.L.C. and our lawyer recommended that everything used for the businees be owned by it. So that in the event something were to happen all of your personal assets are seperate from the company's assests. Hope this helps.
     
  7. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Correct answer, jc1. Thanks for the reminder.
     
  8. UTM-PIKE

    UTM-PIKE LawnSite Member
    Posts: 65

    What if your a sole-proprietor? Do you have to pay taxes or anything else to have your companies logo on your own truck??? My business is growing in size, and I am trying to do bigger and better things, but I am still trying to keep things simple. What about commercial tags on a both truck and trailer? Would it be good to have my business licensed for advertising purposes?
    Jereme
     
  9. jc1

    jc1 LawnSite Bronze Member
    Posts: 1,517

    I know that in N.J. if you have a sign on your truck or trailer and it is used for a business, it is supposed to be registered commercially. When i reregistered my truck and trailer I had to write a note stating that I owned them and that I was transfering them into my business name. I had to pay no tax on them again.
     
  10. Always Green

    Always Green LawnSite Member
    Posts: 48

    Oh yea keep your truck in your name, when you hire someonehe can take the truck to go to the store for a few nice cold sodas, run over little Billy as he run out into the street,and you can explain to your wife why biily lawyers are taking out her silverware and your tv!!!!!!!!!!!! Incorpate and put the truck in the corpate name or you'll be sorry.

    I know I know your not that big or your going to hire better drivers,you'll turn around and you have 4 employee and 2 trucks,set-up like your a real business now not some fly by night in his old pick-up.

    How do I know this I make that mistake 20 years ago took me a bankruptcy and years to get back on top.
     

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