If your business is a corporation -- even a one-person corporation -- it's legally a separate individual. Your money and the corporation's account are two separate pools. If you want your company to have title to the car, you have to buy it with business funds or have the corporation take out the loan. The title goes in the business's name.
It's perfectly legal to drive a company car on personal business. It's also taxable: The use of a company car is a fringe benefit, and your corporation has to report the equivalent cash value on your W-2. There are still advantages to driving a corporation-owned car, though. The insurance premiums are often lower, and the company may get a better interest rate on a loan than you would.
- Photo Credit XiXinXing/iStock/Getty Images
Leasing Vs. Buying a Car for a Small Business
Leasing a car can be a good option for any business vehicle, but buying it outright might help you to avoid unnecessary...
How to Buy Army Surplus Vehicles
Buying Army surplus vehicles is a superb idea if you want to get field tested and rugged vehicles that have a good...
How to Obtain a Car With a Business EIN
Purchasing a car in the name of a business is very similar to purchasing one in your own name, except you use...
How to Buy a Car With Business Credit
Commercial credit allows a business owner to borrow against his business rather than his or her personal credit file. Also, business credit...
Can I Buy a Car With a Tax ID Number?
A Tax ID Number can be used to buy a car under circumstances, but it depends upon what kind of TIN you...
Can an LLC Buy a Car?
In the United States, any business -- including an LLC -- can purchase tools necessary for doing business. Since many LLCs may...
Small Business Benefits of Leasing Vehicle
An important decision faced by small business owners is whether to buy or lease the vehicles they need for their business. While...