RV titled in business name

captbarryw wrote:
Fred, just wanted to say thanks for taking the time for that post! I'll let you know what I decide to do!

Barry

You are welcome.

By creating a business with "Leasing" someplace in the title, your insurance agent will not think that it is owned by a corporation that you control (they really don't care who the actual owner is) and will not give it commercial insurance, unless you intend to have clients on board, and actually use it as a business transportation (like say a taxi or bus that makes trips to the local Casino's.) The insurance agent will think that you leased the vehicle from the company that it is titled in. You can also put the trailer in that leasing company.

Then all expences to that leasing company can be written off. You just send a check to "Smart leasing" (come on thing of another name) each month for use of the vehicle, and cover smart leasing costs. All oil changes, ect. can be either written off as a normal business expence, or "Smart Leasing" can include them in a full service maintenance contract that your other corporation agreed to pay for. I am sure you can do someting with the fuel costs as well.

It is not unheard of to have a leasing company pay for the fuel, and you just rent it by the mile, or month and mile, you can see where this might go? Your corporation pays smart leasing a all inclusive fee of say $2 per mile for depresion and fuel, and maintenance. It is the actual expence to run the coach, so the IRS looks at it as a normal cost to drive such a large vehicle. You will be using the vehicle to see clients, exclusively, and using it as your office, or whatever? Actually you might not want to write it off as a office expence, just a business expence. IRS is very picky about writing off a office in a house, don't know what they will do about the office in the RV.

There is a specific rule about renting out your house - you can rent it two weeks a year, and not have to report the income. Say you live near a NASCAR race track, and hate the traffic on race weekends. You could rent your house for 2 weeks a year, and not need to report the income (IRS has a special rule for this, it is legal). The thinking is that your house rent for 2 weeks will be insignificant compared to the write offs that would normally happen with a business writing off normal deprecian and only 2 weeks rent would be what? $300 or $400?

Anyway you can use that to your advantage, and use the RV to hold the corporation meetings. Compare the rent to a normal meeting room. Call the local Holiday Inn, ask for the price for a 600 square foot room, with lunch, video display, seating, tables, and you will be holding your corporation meeting there. They might quote $750 - $1,250? Who knows. But change the venue to your RV, and rent the living room for the monthly shareholder meetings, for say $500 a day. Only 12 days a year though, so it is under the reportable amount. Do it right, record the location, minutes from the last meeting approved, record minutes for this meeting, opening time, discussions, items for discussion, votes, closing time, breaks for lunch, ect.

Fred.

Fred, just wanted to say thanks for taking the time for that post! I'll let you know what I decide to do!

Barry

A lot of leasing companies have the leasing company as the "Owner" and then your name in the person who will be getting the insurance.

Start a company called "Smart Leasing" and put it in that name. There are several good reasons, the least of wich is say the brakes give out, it rolls down a hill into a few dozen parked cars, and they go looking for the owner. It is not owned by your other corporation, so they can only sue the owner of the RV, and you the lease holder. You will look poor enough that they will not bring the heavy collections on you, and the corporation is small enough that it's only assetts are the one vehilce it owns, and the lawyers will not get much more blood out of that company either.

When pulled over to get a ticket, you just say you are leasing the vehicle from "Smart Leasing". When you buy insurance, say that "Smart leasing" is the owner, you are the leasee.

I was at a class for business owners. They say the one rule to not break is calling the company by your name. If any lawyer wants to sue you for whatever reason, they will first check to see if any business is in your name. The more money it looks like you have, the more dilligent they will be at getting as much as possible, and the less likely they will settle for a reasonable amount. They even suggest getting a "Line of credit" on your home, especially if it is worth say $750,000 and the primary loan is only in the $115,000 range. This applies to many business owners who might have bought a house in 1990 for $250,000 and have been paying it off, while the market value went way up at the same time By getting a line of credit for $450,000 and never tapping into it, anyone looking up your property value online will see it is worth about $750,000 and has loans on it for nearly as much as it is worth, and they will be less likely to try to sue you for everything, when they can not determine your true worth.

Just something to talk over with your business attorney. There are a lot of companies in Nevada who are more than willing to provide assett protection. If you have a sound business reason for having the business buy the RV, it is a good reason to do it. However if your reasoning is "To avoid paying $5,000 in Sales tax, and save $550 a year in regerstration fees" - those reasons will not pass the "Giggle Test". So make sure you have a reasonable good reason for having the business own the vehicle.

Businessmen do not need to make smart decisions, but have to make decisions.

It sould cost less than $300 a year to start a new corporation to own the RV. If it costs more than that to have a 0 employee corporation, you are doing it in the wrong state. You should be able to have the corporation that you already have own a second company. It is legal in most states.

If you look at it like this - Can American Airlines buy a company called "Jet fueling services"? If that is true, then your company can do the same thing, buy a company that can lease a RV to whoever it wants to lease it to, or not lease it out at all. If your main corporation can never find somone interested in leasing the vehilce, it might sell it in 4-10 years at a loss.

Fred.

sounds like this will be fun :)

You may need a CDL driver's license too as you are over 26K weight. NC is terrible about tags and licenses as I have to have a 26K plate on my PU because of their DOT.

Sounds like you need the services of a good lawyer. I would think there would be widespread implications in areas you haven't thought of. Some possibilities could be the need for a CDL license, the requirement to enter all weigh stations and be able to furnish manifests and commercial shipping documents, the need for special paperwork if you go to Canada or Mexico, etc.. I would also be very doubtful that you can get any type of non-commercial vehicle insurance and your liability requirements may be quite different than what you are used to. Time to move to the commercial world.