Hello One, Hello All,
Can i sell my car (that i use 95% of the time for business purposes) to my newly formed illinios Corporation?
Are there other things that i can lawfully sell/transfer ownership to my corporation?
Thank you
Dan Nelson
You can sell anything you want to the corporation. Just make sure you comply with corporate formalities and tax law. If you don’t, your corporation is just an extension of yourself.
you can sell it, but it will not change any tax issues:
business miles are still deductible and personal miles are not, regardless who owns the vehicle.
We may not be answering your question. What problem are you trying to solve by doing this sale?
A lot of people when they make up their minds to go into business feel the need to do something. They end up doing things like setting up corporate structures opening business bank accounts buying business cards, etc. You should never do anything in business without a reason. You do things that either allow you to act like you need to or to mitigate a problem that is before you. It kills me when I hear Laural Langemeier’s commercial when the lady says she has 4 LLs and 2 S corps etc. I say but I don’t care how many entities you have how much money are you making.
You need to find a house and buy it. Until you buy some real estate you are not in the real estate business.
Check the insurance because corporate owned car insurance cont. usually are a lot higher than for an individual.
To answer the original question, yes you can sell the car. It would be advantageous to draw up a bill of sale between your Corp. and yourself for record keeping.