Q&A for How to Buy a Car Under a Business Name

Yes, in the United States you can buy a car under a limited liability company (LLC). The company must be properly registered as an LLC and you will also need an Employer Identification Number (this can be obtained for free from the IRS). The steps above explain what you’ll need to do in more detail. Of course, the car must be one suitable for business work; unless your business actually requires a luxury sports car for its brand or sales, stick with standard models.

A sole proprietor cannot buy a car for "the business" in the same way a registered company can. However, if you do buy a car principally for the use of your business, you may be able to claim all the expenses related directed to business use of your car. This can be tricky because unless you leave the car at work and only ever use it for work purposes, most sole proprietors end up mixing business and personal use. As such, it’s absolutely vital to fully document every business use of such a car to claim tax write-offs. Talk to your accountant or taxation agent for more details.

Yes, it is possible to buy a car with an EIN number, you just need to be sure to clarify with the sales team that this is your intention. When buying the car, make it clear that it's a business purchase of the vehicle, not a personal one as this impacts which credit application you’ll have to fill out. When filling out the form, check the EIN box or write out the EIN on the appropriate line. Ask the sales team for help if you’re not sure.

Provided your business is properly registered as a business (e.g., an LLC), you should be able to register a car bought for the company under the company’s name. However, there are some things to be aware of. First, the vehicle should have been purchased under the company’s name. Second, the process for registration varies from state to state, and this impacts the type, weight and expected usage of the vehicle. In most cases, the car will need to be fully insured, usually commercial insurance. Talk to your local motor vehicle department to find out the specifics for your jurisdiction.

One way to do it is to simply switch your bills to your company name. Then contact Dunn & Bradstreet to create a profile for your company; it costs around $1500 for them to do this. They will provide a 9 digit number which will be used to track your business credit. From now on, make sure that all purchases and bills for the company are made in the Company's name. When you pay the bill, give the information to Dunn & Bradstreet. After about six months you should be able to get a commercial credit card which will be in your company's name and not yours.

You just need to be over 18 and not bankrupt. Other qualifications vary by industry, so it depends what kind of business it is.

Yes. It could actually be registered under both your name and your business's name.

This depends on your company's policy with the vehicle, but generally yes this is possible.

It is assumed you would not insure a vehicle without the intention of somebody driving it. If you tell an insurance agent you do not have a license and want to insure your car, you will more than likely be told it is not possible. It is standard procedure to verify a driver's license before an insurance policy is issued.

Go to your local DMV. You will have to show proof of what entity you have established for your business.

Commercial plates are based on the GWVR exceeding 6,000 lb. gross load. Anything below this would be a regular plate.

Yes you can, d and b is only one of multiple cra's for commercial entities. Additionally, you can have virtually no personal or business credit and still get a loan (for a vehicle) via the "skin in the game tactic" or paying down the loan with cash to limit the bank's liability.

You owe taxes for using your own car. If the car is in your name, you can only claim business use. If it is in the company's name, you owe your share of the taxes for personal driving, which can be fairly high.

You can register in either but it will be much easier for the IRS and insurance if it is parked at your primary home of record or local business address instead of in another state it only visits infrequently.

Typically, only employees who are authorized by the company are allowed to drive a company-owned vehicle. This usually means they have a valid driver's license, have been added to the company's insurance policy, and have received permission from a supervisor or manager. Some companies may require a clean driving record and may also conduct background checks. Always check your specific company's policies for precise requirements.