RV titled in business name
Hello, Picking up a 37' Safari Serengeti Wednesday. I would like to title it in my corporations name. It will not be used for commercial purposes, but I will be driving it to areas I am working a...
Forum Discussion
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.
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.
