Many people who have their own limited liability company desire to transfer their property to the company and put the property under the LLC’s legal name. Selling your car to your own LLC is legal under current law and it’s something you can do whenever you want. You have to consider, though, that there are some procedures and legal specification details you must follow in order to successfully sell your car to your LLC.
When you sell your car to your LLC, the car will no longer be under your name. Because the LLC is a legal entity separate from you, the car won’t be yours legally once the transfer is done. This is important, as many people think that because the company is their own property the car will continue to also be their own property. This is a vital point because tax laws, for example, apply differently to people than they do to limited liability companies.
When you sell your car to your LLC, the legal procedure is the same as if you were selling any asset to any person. You’ll have to fill out the formularies in presence of a public notary, who will assure the legality and success of the operation.
If you’re still paying for your car, it’s impossible to sell it to your LLC. Legally, the car is not yours yet, so you cannot dispose of it as you want until the loan is paid in full. Also, if your car has been listed as collateral in any type of loan, you won’t be able to sell it to your LLC. Only when you’re the sole legal owner can you complete this type of operation.
When selling your car to your own LLC, it is important to seek legal advice. Legal and real estate procedures are always tricky and so detailed in specifications and clauses that you may become confused. If formularies contain even a small error, the whole operation can be interrupted or taken back to the beginning.