LLC to use for vehicles.

B

Bronto

Well-known member
LLC Limited Liability Company.

Allot of information is on the internet. The answers are hidden in the details.

Goal is to put a bunch of vehicles into a LLC. To help reduce liability exposure by causing a separated ownership of these assets.

Anyone doing something along these lines ?

Annual cost is a bit of a mystery. Looking for a LLC variant with minimal annual costs.
 
SFSV650

SFSV650

The Slowest Sprotbike™
Bronto said:
LLC Limited Liability Company.

Allot of information is on the internet. The answers are hidden in the details.

Goal is to put a bunch of vehicles into a LLC. To help reduce liability exposure by causing a separated ownership of these assets.

Anyone doing something along these lines ?
Annual cost is a bit of a mystery. Looking for a LLC variant with minimal annual costs.
Click to expand...

I've thought about this.
Kudos to you if you actually go ahead with it. Please let us know what you find out!
 
bpw

bpw

Well-known member
I looked into something simliar recently. As I understand it, if the LLC is specifically to shield from liability it is possible for a court to break the LLC and you are still liable.

Basically, if you get sued you may have to show the LLC has a legit reason to exist beyond protecting your assets.
 
B

Bronto

Well-known member
$800 bucks annual fee, ouch. Plan B might be a Trust that owns the assets.

Just in the exploring phase with all this.

Did see a recommendation not to operate the LLC a personal entity. Operate it as a Business entity. Suppose could throw into some business assets and dealings with the LLC.
 
B

Bronto

Well-known member
Is this right ? In some incidents the LLC would shield liability seeking deep pocket assets through the owner of the vehicle.
The person who is in the Accident the LLC isn't going to help much. When someone other than yourself gets in an accident the LLC protects your assets from being sought through ownership of the vehicle.
 
Owensdad

Owensdad

Well-known member
Bronto said:
Is this right ? In some incidents the LLC would shield liability seeking deep pocket assets through the owner of the vehicle.
The person who is in the Accident the LLC isn't going to help much. When someone other than yourself gets in an accident the LLC protects your assets from being sought through ownership of the vehicle.
Click to expand...

All of the assets in the LLC are subject to civil judgement against the LLC. The LLC s members assets should not be attracted by civil awards against the same if structured correctly. That's the juice.

You need a competent attorney to structure assets with and without the LLC.

For us income tax purposes the LLC is disregard unless corporate treatment is affirmatively elected.
 
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sv2007

sv2007

Well-known member
Bronto said:
$800 bucks annual fee, ouch. Plan B might be a Trust that owns the assets.

Just in the exploring phase with all this.

Did see a recommendation not to operate the LLC a personal entity. Operate it as a Business entity. Suppose could throw into some business assets and dealings with the LLC.
Click to expand...

That's not an annual fee but the annual minimum CA corp tax, i.e. if you make enough money to cover it then there is no "fee".

Don't know your situation, but we (and friends) do the following to protect our assets: 1. have an umbrella insurance and 2. moved some assets into trust. These are pretty economical ways of dealing with lawsuits; maybe you want to look into it.
 
westie

westie

Its Dethklok!
I use an llc for business. I also have 1m coverage on all vehicles. Is using an llc for vehicle ownership better than a 1m insurance policy?
 
sv2007

sv2007

Well-known member
An auto insurance policy only covers your car, but an umbrella policy covers multiple exposures in addition to your car.

I'm not too familiar to LLC, but I think they are similar to a corporation just no stocks or meeting requirement. LLC vs high liability; they are different. High liability protects your asset; LLC limits your loss. E,g. if you are personally involved in an accident, there's nothing preventing the person from suing you personally (addition to your LLC); so in this case, high liability can help. If your employee does something worthy of a lawsuit, then your LLC can limit your exposure. So, a small business needs both: a corp entity and high personal coverge (which can be an umbrella policy).
 
B

Bronto

Well-known member
The Umbrella insurance sounds like option.

Eight Hundred bucks a year isn't so bad either.

Wonder it this is something to be worried about at all. Given a situation were there is multiple drivers at high risk for being in an accident (elderly). As protection against their estates from being targeted from a lawsuit.
 
mrmarklin

mrmarklin

Well-known member
Bronto said:
LLC Limited Liability Company.

Allot of information is on the internet. The answers are hidden in the details.

Goal is to put a bunch of vehicles into a LLC. To help reduce liability exposure by causing a separated ownership of these assets.

Anyone doing something along these lines ?

Annual cost is a bit of a mystery. Looking for a LLC variant with minimal annual costs.
Click to expand...

I would only do this if I was going to use the vehicles in a business. CA charges a minimum tax of$800 per year, and then one must file annually. If multiple vehicles are in the LLC, they are collectively exposed to risk even if only one has the problem.

Insurance is usually cheaper than doing this IMO...CA will require insurance any way, and if a LLC is to own a vehicle you will likely be charged a commercial rate. Same goes for financing. It will be more of a hassle.
 
bpw

bpw

Well-known member
Bronto said:
The Umbrella insurance sounds like option.

Eight Hundred bucks a year isn't so bad either.

Wonder it this is something to be worried about at all. Given a situation were there is multiple drivers at high risk for being in an accident (elderly). As protection against their estates from being targeted from a lawsuit.
Click to expand...

Won't it be the driver getting sued, not the LLC that owns the car?
 
B

Bronto

Well-known member
Yeah LLC is not the vehicle I thought it was going to be. This Umbrella insurance sounds interesting now.

Thanks for clearing up the details.

I might start another thread just for LLC in general. Its an interesting setup.

Interesting find was the Montana LLC that specializes in registering vehicles. Mostly for sales tax savings. Big Motorhomes, Planes and Boats. Funny they don't mention cars, but they do list motorcycles, snowmobiles etc.
What is interesting with the motorcycle is registration is permanent. One time registration fee and thats it. It could save a few hundred bucks a year, but also cost a few hundred bucks a year to operate the LLC. Still interesting stuff. Might remember this when you put in your order for a new private jet :laughing
 
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B

Bronto

Well-known member
SFSV650 said:
I've thought about this.
Kudos to you if you actually go ahead with it. Please let us know what you find out!
Click to expand...

Pulled the trigger on this thing. Submitted forms to LLC in State of Montana. :party

Turns out the number of vehicles we have that can receive permanent registration is cost effective. Year after year pay registration on a travel trailer that isn't used on the road. Ten plus years old motorcycles also receive a permanent registration.

Used https://www.montanaregisteredagent.net/ to start the LLC. Once the LLC takes effect will start transferring the vehicles.

Only problem can foresee is getting pulled over by LEO. Montana plates :wtf
At least it not on the Cars. :p
 
bpw

bpw

Well-known member
Bronto said:
Pulled the trigger on this thing. Submitted forms to LLC in State of Montana. :party

Turns out the number of vehicles we have that can receive permanent registration is cost effective. Year after year pay registration on a travel trailer that isn't used on the road. Ten plus years old motorcycles also receive a permanent registration.

Used https://www.montanaregisteredagent.net/ to start the LLC. Once the LLC takes effect will start transferring the vehicles.

Only problem can foresee is getting pulled over by LEO. Montana plates :wtf
At least it not on the Cars. :p
Click to expand...

If you ever get caught you will need to prove those vehicles are kept in Montana. CA requires all vehicles to be registered here within 10 days.
 
B

Bronto

Well-known member
That sux

May just refine this registration to the travel trailer than. Travel trail is on private property not visible from the road. The owner of the trailer won't take it on the road due to fears of safety reasons. So it makes a nice guest room and storage.
 
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mrmarklin

mrmarklin

Well-known member
You do realize that a LLC managed from California by a CA resident is subject to registration and payment of fees same as a domestic LLC. Right?
 
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