How to buy a car in your business' name?
Did you know that you could buy a car in your business' name? Oh, yeah. You heard that right.
Noelle Randall is an entrepreneur, a business owner. And so, I have bought
many cars in my business name. I'm going to tell you exactly how you can do it too. Let's go.
I'm going to share with you a step-by-step detailed process on how to buy a car in your
business' name even if you're just getting started as a business owner. 2, I'm going to
share with you the differences between buying a car on your business's name and leasing a car in
your business' name and give you some benefits of which one is best for you. And last but not least,
I'm going to share with you some secret ways on how to write off all of the expenses for the car
plus the cost of the car because it's an asset of your business. So, let's talk about all of
the benefits of putting a car in your business name and why you want to do this. Because you
are a business owner, pretty much everything that you do for your business is a business write-off.
Now, again, I am not a tax professional or an attorney so I'm not going to give you any tax
advice. But as from experience, as a serial entrepreneur, someone that runs 6 businesses,
I can tell you that I am able to buy cars in my business's name. Then I'm able to write-off not
just... I don't necessarily do the mileage. You know, there's different ways when you get with an
accountant that they can write these things off. But I take law like the actual expenses. You know,
all of the oil changes that I do for my car. All of the tires that it may need. You know,
the gasoline that it cost me to drive the car like the actual expenses of the vehicle, I am able to
write-off. Now, this is a benefit to most business owners that they do not know. So, if you need
write-offs and expenses and you are trying to lower the amount of taxes that you may be paying
to your business, this is a great way to do that. Additionally, I started this while I still had a
job, okay? You can literally have a job and own a business and put cars in your business' name.
And I did this. So, one of the ways that I was able to lower my tax liability... You know,
how much taxes I owed to the IRS was through the expenses and the write-offs from my business.
And one major write-off being the car that I drove. Everything that you do as a business owner
probably means that you are driving. Most cases you have to get to your locations, to your events,
to meet your clients, whatever it may be. So, this is why it is written in the tax code and it is one
of the things you should be taking advantage of. So, let's get into how you get this done because
it's super easy. So, when we are talking about putting a car in your business' name, we are
essentially talking about business credit. Now, of course, you can register a car in your business'
name if you have truly set it up as an entity. But what I'm really talking to you about how to really
turn this into your advantage is to have it really in your business' name through business credit.
Meaning, your business can borrow the money to buy the car and pay for the car. That is the key. That
is the thing most people are not talking about because most people do not know that they can do
this. So, let's talk about how you get this done because again, super easy. You just have to be
a business. You must have a real business license like an LLC an S Corp or C Corp. You have to have
your EIN number, a professional phone number, a professional email, and a professional website.
Those are like the basic things. And that's really all you need to have a real business,
okay? The next thing that you're going to do and I made an entire video if you need this
on business credit. I'm going to put a link to it in the description box to building business
credit really fast. Of course, you're going to need a Dun & Bradstreet number. Dun & Bradstreet
is the number one reporting agency for business credit. Okay? And I'll (again) put a link to how
to that video that teaches you all about this. But it's free to get a Dun & Bradstreet number
and this is the credit bureau that most lenders will use or check, okay? Now, there's a few others
that will check Experian business or Equifax business. But again, I have a whole video
that teaches you on business credit if you need to watch that. But this is very easy to get done. So,
whether or not you're able to finance the car in your business' name or you have just to
register in your business' name, you're probably going to want to do that because you will get
those benefits that I mentioned earlier. So, now let's talk about buying or leasing a car in your
business' name because that's really what we're talking about. Again, on almost any situation,
if you have a real business established, you can register the car in the business's name. And that
is great because now of course you're saying that this car is used for business purposes.
But now let's get into actually financing it and buying it or leasing it in the business's name
using business credit, okay? Meaning, they will finance it in your business's name, they check
your business's credit. They don't necessarily put it on your personal credit, okay? So, this is the
process, this is what you want to do and this is how I buy my cars. This way, it doesn't show up on
my personal credit report. Again, when it comes to business credit, there is a separate entity. Your
business has its own business credit profile. You use your EIN number and you're Dun & Bradstreet
as the identifier instead of your social security number. This way when you make the payments,
it will report on the business credit reports and not on your personal credit report. So,
let me give you one piece of advice because this is super important. There's a thing called
a Personal Guarantee. In most cases, the lender, (even if they're going to finance it and put it in
your business' name which is what they do for me) they still make me do a personal guarantee. Now,
I've done 6 or 7 cars this way. So, on the last ones, I actually did not. I have enough trade
lines on my business credit report where I do not have to personally guarantee it. In fact,
my business makes more money and is more wealthy than I am as a person so they actually do
want to lend to my business' name. But that is a commercial type of loan. If we're just talking
about a regular loan, alright for a car in your business's name, they're most likely going to
make you personally guarantee it. That's totally okay. All you need to do is ask or request that
it doesn't go on your personal report unless you default. Most cases, that's the situation
unless it's the first time you're doing the car. Usually, after the second or the third time,
they will not report it on your personal credit report. It'll just be on the business credit
unless you default on the [???]. So, that's the amazing thing. So, now let me give you
some bonus tips on financing versus leasing the car in your business' name and some points that
you will need because this is super important. When it comes to financing the car, like I said,
you will have to usually do a personal guarantee. Also, though, leasing will offer you some amazing
benefits as well, especially in regards to the tax write-offs. Again, get with your accountant
because usually, if you lease the car in your business's name, you can write-off everything.
And this is something that I used to do. However, the mileage and some of the penalties used to get
very expensive. And now, I found a way to monetize my cars in a way that is absolutely amazing.
So, one of the things that I do now is I put my cars on Turo. And I will rent them out when
I am not using them and this is how I get these cars almost for free. I get to drive cars that I
want to drive. This is a 2020 Tesla Model X that basically cost me absolutely nothing per month.
So, I finance the car in my business name and I do use it for business purposes. Obviously, looking
at real estate property and things like that. But I also monetize the vehicle by putting it on Turo.
It rents for over $200 per day. And I'm easily able to pay the cardinal or any other expenses.
And it is truly an asset of the business. So, you can turn your car into a business. You can
use it for your business. There's so many ways that you can make money off your car especially
if you do it in your business' name. So you want to get to it. One last thing, you will probably
need a business checking account. Remember, I said you'll need some basic items for your business
--LLC, C Corp, S Corp, professional phone number, all of those things mentioned earlier. You will
also want to have a business checking account with at least 3 months of statements usually
when you are financing or leasing a car. If you don't have your tax returns, they will ask you
which is what they asked me for was just 2 or 3 months worth of bank statements. They will look
at how much deposit is going to that. And that is how they would determine your income. So, again,
they have some really creative ways where they're getting people to finance cars in their business
name. This is becoming a lot more popular which is why I'm making this video because this opportunity
is amazing. Interest rates are so low. Like I said, I got this brand new 2020 Tesla Model
X. And the interest rate is less than 4% on a 72-month loan and it's in my business' name. And
I'm easily able to make money off this car and I love driving it. So, this is what you can do too.
I have written a new book that I want to make sure that you check out absolutely free.
Go to noellesfreebook.com. That's Noelle, n-o-e-l-l-e-s. Noellesfreebook.com. I've made a
book called Real Estate Millionaire Secrets where I'm sharing everything in a book absolutely free
for you. Go to noellesfreebook.com. I want to make sure that you have all of the resources, all of
the tools, and all of the knowledge that you need to be successful. This is Noelle. To your success.