Registering a business car under a business name is a way for some companies and corporations to take advantage of tax breaks for that vehicle. That is not always the case and may not be the best option for your business. However, if you want to learn how to register a business car, this article will show you how to do so using the following quick and easy steps. First, you need to decide if the corporation or the person driving the vehicle will be identified as the owner. In most cases, the corporation will opt to identify itself as the owner and register the vehicle in the corporation's name.
Decide whether you will register the vehicle with the business, or the employee who will be using the car. In most cases, the corporation will register the car in their name. However, in some cases an employee is permitted to register the vehicle in his name. This will also allow the employee to deduct appropriate expenses on his personal taxes. A corporation could receive a better insurance rate if several cars are insured under one policy.
Register the business car as you would register a personal car. The car should be registration yearly with the Department of Motor Vehicles (or according to state requirements). Bring title information, insurance binders (in some states), past registrations, your business name and address, and applicable documents to your state. Contact the Department of Motor Vehicles for a list of the items required by your state.
Take your paperwork to the DMV, RMV or state specified registration location. Complete the forms to register a business car. In some states, this may be the same paperwork required to register a personal vehicle. Be sure you have the correct business name, address, and a copy of your business registration. If you are registering the car under a DBA (Doing Business As) qualification, have the appropriate paperwork at the time of registration.
Keep a copy of the vehicle registration with your company files. A copy should remain in the vehicle at all times.
Registering a business car will allow you to deduct expenses from the business. A registered vehicle could help an employer or small business owner to earn a better insurance rate.
Registering a car to a business varies from state to state. Each state requires slightly different forms, so be sure to check with your state's Department of Motor Vehicles to learn what forms are required in your state to register a business car.
Registering a car to a business means the business is liable for the car. Be sure to research your state's laws regarding accidents, insurance and coverage for your drivers. Rules vary from state to state.
The tax advantages for registering a business car can be complex. So, before you decide to register a company car to your business consult a tax professional.
Visit http://www.irs.gov for current tax laws.