What is the process to lease personal truck to business...

Discussion in 'Business Operations' started by mrusk, Nov 7, 2004.

  1. mrusk

    mrusk LawnSite Gold Member
    Posts: 3,260

    A while ago there were a few post on this board about leasing a personal vehicle to a business. I want to use my truck that is in my name (however nowhere near paid off) as my work truck. To play it safe i need to get commerical insurance for it. What is the process i need to go through to set up this agreement so i can lease the truck to my LLC? I spoke with my accounting and he never heard of this. If you guys could tell me what i needed to do i'd appreciate it? And did any of you who do this have trouble with an insurance company not wanting to insure you because of this.

    Thanks ahead of time.

    Matt
     
  2. Mueller Landscape Inc

    Mueller Landscape Inc LawnSite Senior Member
    Posts: 489

    Talk to you CPA. Have him/her set it up.
     
  3. tonygreek

    tonygreek LawnSite Gold Member
    Posts: 3,417

    as john said, absolutely talk to your (a) cpa.

    tony
     
  4. mrusk

    mrusk LawnSite Gold Member
    Posts: 3,260

    I already spoke with my cpa already and he couldn't give me any advice on the subject.

    matt
     
  5. Mueller Landscape Inc

    Mueller Landscape Inc LawnSite Senior Member
    Posts: 489

    You need to find another CPA.
     
  6. Henry

    Henry LawnSite Senior Member
    Posts: 549

    Ask your insurance agent. My agent gave me advice on this same subject when we met to discuss my policy.
     
  7. jc1

    jc1 LawnSite Bronze Member
    Posts: 1,592

    I was in a similar situation last year. I took my truck off of my personal insurance and insured with allstate on a commercial policy and named myself and my LLC as insured on the policy and got commercial tags.
     
  8. tonygreek

    tonygreek LawnSite Gold Member
    Posts: 3,417

    to shield yourself from liability, you probably would want to form an inc or llc, and have that company lease to your lco. talk to an attorney specializing in small business.

    tony
     
  9. John Gamba

    John Gamba LawnSite Fanatic
    from ct
    Posts: 10,812

    Bingo!!!

    John
     
  10. Green in Idaho

    Green in Idaho LawnSite Senior Member
    from Idaho
    Posts: 833

    Imagine yourself leasing your personal vehicle to ABC Company (owned by someone you do not know) in another town.

    The same issues you would want to address before turning over the keys and getting a payment would be the same issues to address if leasing a vehicle to your own company. It's a matter of paperwork.

    I would concur it makes a big diff whether you hold the vehicle and lease to your LLC or if you form an S-corp to hold it and lease to LLC. I would rec the 2nd alt.

    Also consider sales tax. In most states leasing is subject to sales tax too. Something the attorney may not consider. Something else an attorney may not consider is the accounting differences between of an operating lease vs. a capital lease.

    And then when you are ready to make it happen calculate the savings and benefit of doing it. Do you want to go through all the hoops to save $x.
     

Share This Page