What Do I Need In Order To Buy A Car In The US?
When you talk about operating a business in the US, you have to keep in mind businesses and people are considered different entities. Moreover, it is not necessary for you to connect these entities. What is interesting is the fact you can actually get a loan for a car under your business name without having to provide your social security number. Commercial vehicle loans are offered to businesses based on their credibility. That being said, you can only buy a car under your company once it has been established. But if you are wondering about what you require in order to make this work, read on.
Establish a Business Credit That Is Tied To Your EIN (Employer ID Number)
Before you go any further, it is important for you to obtain an EIN. These can be obtained by filling out an SS-4 IRS form. The form is available on the IRS website. Once the form has been filled, contact a business credit bureau, like Experian, and inform them about your company and its operations. To validate your company’s existence, a business file will be opened by Experian. This allows any and all business lenders you plan to work with to receive more information about your business and its credit rating and file before offering the loan you applied for.
Register the Car in the Name of the Company
After you have decided about the vehicle you want to purchase for you business, negotiate with the car dealer. Once you two settle on the price, inform the seller the vehicle will be purchased in the name of the company. You will then be asked for your EIN instead of a social security number. Once this is taken care of, you can register the car in the name of the company.
If, for instance, you are buying the vehicle directly from a dealer, you will have to pay additional fees for the registration of the vehicle and the application for license plate tags. However, if you are buying the vehicle from a private seller, you have to make sure you get a bill of sale, but it has to be in the name of the company.
There is no doubt that private sales are informal, which is why you need to do whatever it takes to authenticate the purchase to avoid any problems later on. Moreover, the EIN needs to be on the bill of sale. The bill can then be taken to the local DMV (Department of Motor Vehicles) in order to transfer the vehicle registration to the name of the company.
Keeping the aforementioned factors in mind, you will come to realize that buying a car under your company’s name is not as complicated as it may seem. But you will need to be careful and will have to make sure everything is recorded and the vehicle itself can be traced back to your company instead of one particular individual. Following the process outlined above will definitely make things easier for you.
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