Buying a vehicle for the business

[Vivid Color Zack]

I know there's probably a lot of variance state to state...

We have been processing larger orders much more frequently now and my small car is not cutting it. I need to be able to throw a pallet in back and I need something that is going to be cheap and reliable.

I'm thinking used tacoma.

Truck selection aside, I'd like to know what/how you guys set up your insurance and registration.

Is there any benefit to insuring or registering or purchasing it through the corporation? If I finance it I have to keep full coverage insurance on it, which through my name would be expensive, but is there any other kind of insurance where the business could insure it? Realistically... the corp doesn't have a DL number or a driving record, so I don't know how insurance would work...

If anyone has experience with this please let me know. I'm looking to do this soon.

[Dan Furman]

This is one for your accountant. I say that because in this case, the answer will depend more on your unique situation than what other people do.

[CraigFLA]

If the corporation buys the vehicle you get to depreciate it or Sec 179 it if you need to. Regular insurance companies like Allstate and State Farm have commercial auto insurance available. You will need to follow their driver rules.

You could also buy the vehicle personally and pay yourself mileage. You would still need to be sure you tell your insurance company that you will be using it for business.

[Steve B]

In my case, two different accountants told me I was better off buying it personally and paying myself mileage. Other local business owner's I've spoken to all do the same thing.

[Dan Furman]

In my case, two different accountants told me I was better off buying it personally and paying myself mileage. Other local business owner's I've spoken to all do the same thing.

That's what I do (although I do not travel much). The Section 179 thing mentioned in another post - I'm pretty sure that's only for a GVW of 6,000+ (heavy SUV, Hummer, and upward.)

[huggytree]

its better to purchase it your self and pay milage....i get 8 mpg(downhill with the wind blowing with me)...and its just barely better off paying myself milage...with the tacoma your at 18 mpg, so its a no brainer...plus i have tons of repairs...work vans are horrible for repairs....i expect 1 large repair per year...i had a toyota pickup like that and 1 major repair in 200,000 miles..

insurance will have to be through the company...its not much if your the only driver.

id look for the best milage car you can get...the better the milage the more you make tax free from paying yourself milage..

my tacoma 4wd never got better than 18

[CraigFLA]

You can take the government mileage rate or actual expenses depending on which works out better for you.

[Evan]

Seeing as few people rarely use their vehicles 100% for business, it would probably be more advantageous to buy it personally.

Corporate insurance rates tend to be higher. You have two options -- keep track of actual costs, or deduct/reimburse yourself for mileage. Once you pick an option, you must continue to use it consistently. Use whatever option you think is more advantageous.