Registering a Car With a Montana LLC
Instead of buying and registering your car in your own name, you can do so in the name of your business. Here’s how with a Montana LLC:
Can I register a car with my Montana LLC?
Yes. In fact, buying a car in Montana will allow you to avoid sales tax, and registering it with an LLC may help you save on annual taxes. So, win win!
Why register a car with a Montana LLC?
There are a number of potential benefits to registering your car with a Montana LLC, including:
- Liability protection – By registering your car in the name of an LLC, you can benefit from liability protection. If your car is involved in an accident, for example, your LLC would be financially responsible for any debt—meaning your personal assets would be safe.
- Privacy – Registering your car with an LLC means your LLC would technically own the car, which would keep your name off vehicle records with the DMV and the Montana Department of Justice, Motor Vehicle Division (MVD).
- Tax incentives – Company vehicles can qualify for tax deductions based on IRS Standard Mileage Rates. According to the IRS, these tax deductions only apply to those “operating an automobile for business, charitable, medical, or moving expense purposes.”
- No sales tax – One good reason to do business in Montana is that the state doesn’t collect sales tax. If you’re still looking to buy your auto, doing so in Montana may save you some moolah.
How do I register my car with a Montana LLC?
Your first step is to form a Montana LLC, then you’ll want to go through the process of purchasing and registering your vehicle. You should obtain the following:
- Receipt – complete a Bill of Sale
- Title – submit an Application for Certificate of Title for a Motor Vehicle at your Montana County Treasurer’s Office, which should be where your registered agent is located. (You may also be asked to complete a Statement of Fact.)
- Registration – you’ll also have to register your vehicle with your County Treasurer’s Office. You can find more information at the Montana DOJ Vehicle Title and Registration page.
In all facets of vehicle purchase and registration, you’ll want to make sure to list the name of your Montana LLC as the vehicle owner.
What if my car is already registered under my name?
If you purchased your car before establishing your LLC, it’s likely your personal name is listed on your car’s title. To transfer your car’s title over to your Montana LLC, you’ll need to establish a chain of ownership for the LLC. This begins with creating a new Bill of Sale, showing your LLC officially owns your auto. Then you can apply for a title and go through the registration process using your company’s name.
