The Risks Of Putting a Vehicle in Your Business Name

Why It Matters

Placing a personal vehicle under a business name can turn a routine car accident into a corporate lawsuit, jeopardizing assets and complicating tax treatment for owners.

Key Takeaways

• Mixed-use vehicles in business name expose company to personal accident liability.
• Only purchase vehicles under the business if used exclusively for work.
• Personal commuting cars should stay in owner’s name for tax simplicity.
• Mileage deductions can be claimed without placing title in the company.
• Consider leasing through an LLC to separate liability and tax benefits.

Summary

The video warns business owners about the hidden dangers of registering a personal vehicle in the company’s name. While it may seem like a straightforward way to write off expenses, mixing personal commuting with business use can expose the entire entity to legal claims if an accident occurs. The presenter explains that a mixed‑use vehicle creates a liability bridge: if the driver is involved in a crash while on a personal errand, plaintiffs can argue the incident happened during business activity, dragging the corporation into the lawsuit. Consequently, the recommendation is to keep commuter cars, trucks, and other non‑essential vehicles out of the business title unless they are used 100 % for work and driven by employees. He illustrates the risk with a vivid scenario—being filmed for a YouTube short while commuting, then getting into an accident, and an attorney naming the business as an additional defendant. The speaker also notes that many online sources mistakenly advise owners to “run it through the business” without highlighting these exposure issues. The practical takeaway is to retain personal ownership of everyday vehicles and claim mileage deductions, or alternatively, set up a separate LLC that leases the vehicle to the operating company. This structure preserves tax benefits while shielding the core business from personal accident liability.

Original Description

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Are you considering putting a vehicle under your small business name? This video explores the implications of a company car, especially if it's a mixed-use vehicle. We discuss the risks of using a vehicle for personal and business purposes, and how it impacts potential vehicle tax deduction and tax write offs. Get essential tax advice to ensure you're making the right choices for your business.

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ABOUT CLINT COONS

Clint Coons, Esq. has grown his legal and tax firm to over 400 employees by assisting real estate investors with creating and implementing solid entity structuring plans. His success in these regards is in large part due to his personal investing experience. A successful attorney, real estate investor, and speaker, Clint has used his innovative and dynamic strategies coupled with knowledge borne from experience to help thousands of people save millions of dollars and build real wealth.

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The information provided in this video should not be construed or relied on as financial, investment, or legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice.