How To Purchase A Car Through Your LLC

So before we get into how to purchase a car through your llc, lets talk about why you should buy a car through a llc. The Tax write offs are easier to do when you buy a car through your llc. You won’t be confused of what mileage to write off and what not too. You can deduct the entire cost of operation for every vehicle registered specifically to your company.

There are different types of bonuses you will get for buying a Heavier vehicle too. You’ll be eligible for a Section 179 deduction of up to $25,000 if you use a “heavy” SUV, pickup or van for business 50 percent or more of the time. 

This big deduction only applies to the first year you put the vehicle in use, and you’ll need to make sure it meets the IRS’s specifications.

There are plenty of other reasons why you should buy a car through your llc but I’m not going to go over every reason why. I’ll save that for another post. 

Lets get into the actual steps of How To Purchase A Car Through Your Llc

Step 1. 

You must apply for the car using your business name and federal tax id.

Step 2. 

If your business is not credit worthy nor generating enough profit you may be required to co sign individually for the car. 

Step 3. 

Gather all business and personal tax information showing that you can actually afford the vehicle. 

Step 4. 

Also make sure to bring your articles of incorporation for proof that the business is yours.

Step 5. 

Make sure to add the value  of the car as an asset and the amount financed as a liability on your company books. 

Step 6. 

Next step is to lower your liability by splitting the interest paid as an expense on your profit and loss statement. The principle will be applied to lower your liability. 

Step 7. 

Your accountant will depreciate the asset value of the car and deduct it from the cars value on your balance sheet. 

Step 8. 

The yearly depreciation amount will be deducted from your profit in turn lowering your taxable income. 

And my friends this is How To purchase A Car Through Your Llc. As you can tell there are a lot of benefits to purchasing a vehicle with your business credit. 

If you want to learn more about this topic 

There is a ebook you should go and check out right here.