If your business requires a car for delivery or employee transportation, registering it under a business name can be an efficient solution. But there are some things you should be aware of before beginning this process.
Utilizing Your Vehicle for Your Business
In order to register your car under a business name, you’ll need to be part of either a corporation or LLC. In certain states, having a representative from the company sign a title application with the department of motor vehicles proves that you own the car.
Additionally, have a copy of your Articles of Organization to prove that your business is running efficiently. Doing so can make the registration process much smoother for both of you.
Tax Benefits
When you register a car under your business name, you may be eligible for tax write-offs on part of the expense. But it’s best to consult with an experienced tax professional beforehand to guarantee you are following all regulations and filing correctly.
In addition to tax benefits, owning a company car has several other advantages. Most notably, it will be registered under your business name and won’t appear on your personal credit report.
If your vehicle is primarily used for business purposes, commercial auto insurance is a wise idea. Not only will this safeguard your investment, but it can provide peace of mind in case of accidents, liability issues and more.
Taking Your Family on a Business Trip in Your Company Car
If you plan to use the company-owned vehicle to transport your family members on business trips, make sure they have insurance too. Different policies have different rules regarding company cars, so make sure yours will cover them before hitting the road.
Adding a Business Name to Your Vehicle
If your company is registered in The Netherlands, you can register your vehicle under its corporate name. You have several options when doing this – either as a sole proprietorship, association, limited liability company (LLC), or professional partnership.
To register a car under your company name in the Netherlands, you need either to have either a Dutch business register (KVK) number or be an established foreign legal entity with such registration.
The vehicle can be utilized both for corporate and private uses, though it’s recommended that you primarily utilize it for business-related tasks. Doing so helps avoid accusations of using the car personally.
Acquiring Legal Identity
Once your LLC is officially registered with the state, you can purchase and own vehicles there as well. To do this, you must file Articles of Organization with the authorities.
Once this step is completed, you can purchase a vehicle in California and register it under your business name. However, keep in mind that this process can be lengthy and complex; thus, seeking California DMV assistance as necessary can be beneficial.
