Considering a Company Vehicle for Your LLC: Insights and Advice
Owning and managing a multi-unit apartment building comes with unique challenges, including vehicle needs for effectively managing your properties. If you’re in a situation where you’re contemplating replacing an old vehicle, you might be wondering whether to invest in a company vehicle under your LLC instead of opting for a personal loan.
Recently, I had a conversation with my accountant about this very topic. After weighing the pros and cons, his advice leaned against purchasing a company vehicle, preferring instead to take advantage of tax deductions for mileage, depreciation, maintenance, and so on. Here are the primary concerns he raised:
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Justification: If you’re managing only one property, it’s challenging to justify the necessity for a vehicle dedicated solely to business operations.
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Asset Resale Complications: When it’s time to sell, a vehicle registered as a company asset may pose additional complexities.
In my personal situation, my partner and I own two vehicles: one serves as our main vehicle and the other is primarily used for business. The vehicle that needs replacing is crucial for our daily operations. Despite my accountant’s reservations, the idea of a company vehicle is still appealing, as I typically utilize my vehicles to their full lifespan, minimizing concerns about resale.
With that said, I am currently heeding my accountant’s advice but remain open to learning from others who have faced similar decisions. If anyone has experience or insights on investing in a company vehicle for their LLC, particularly regarding the factors that swayed their decision and the professional advice they received, I would appreciate your wisdom. Sharing your experiences can offer invaluable guidance for those navigating these complex business decisions.
