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How to Place Your Vehicle in Your LLC in 2025 (And Why It Matters for Your Business)


As a small business owner in 2025, maximizing tax deductions and protecting your assets are top priorities. One often-overlooked strategy is placing your vehicle in your LLC. But how do you do that, and is it worth the effort?


At Superior Virtual Bookkeeping LLC, I work with solo entrepreneurs and small businesses across Murrieta, Temecula, Wildomar, and Menifee to help them make smart financial decisions. Here's what you need to know about transferring your vehicle into your LLC, and what to consider before doing so.


✅ Why Put Your Vehicle in Your LLC?

There are two primary reasons business owners consider putting a vehicle in their LLC:


  1. Tax DeductionsIf the vehicle is used primarily for business, you may be able to deduct expenses such as gas, maintenance, insurance, and depreciation. This can result in significant savings come tax time.

  2. Liability ProtectionBy titling the vehicle under your LLC, you create a layer of legal separation between personal and business assets. If the vehicle is involved in an accident, your personal assets are less likely to be at risk, assuming the LLC is properly maintained.


🚗 How to Transfer Your Vehicle Into Your LLC in California (2025 Edition)

Here’s a step-by-step breakdown tailored to California-based businesses like yours:


1. Check Usage Eligibility

Make sure the vehicle is primarily used for business purposes (more than 50% of the time). Personal use can complicate tax and liability benefits.


2. Update the Vehicle Title

Visit your local California DMV office and complete a Title Transfer from your personal name to your LLC. You’ll need:


  • The current title (signed)

  • LLC Articles of Organization (or your Statement of Information)

  • Your California LLC number

  • Proof of insurance in the LLC’s name

  • A completed Application for Title or Registration (REG 343)


3. Update Insurance

Contact your insurance provider to update the policy so it’s in the LLC’s name. Premiums may change based on business use.


4. Document the Transfer

If your LLC didn’t purchase the vehicle but you’re transferring it from yourself personally, document it with a bill of sale and a capital contribution form for your accounting records.


5. Adjust Your Bookkeeping

This is where I can help you! Your books will need to reflect the vehicle as an LLC asset and track related expenses properly. Depending on your tax filing method (Schedule C vs. S Corp), this can affect depreciation and deductions.


⚠️ Things to Watch Out For


  • Personal Use Complications: Using the vehicle for personal errands? You’ll need to keep a mileage log to separate business vs. personal use.

  • Franchise Tax Board (FTB) Considerations: California has strict rules for LLCs. Make sure your filings and fees are up to date.

  • Financing Issues: If your vehicle is financed, your lender may require approval before transferring the title.


🧾 Bonus Tip: Don't Forget About IRS Section 179

If you purchase a new or used vehicle and place it into service in 2025, you may qualify for Section 179 depreciation, which allows for accelerated write-offs, if certain criteria are met. Let’s review this together before year-end so you don’t miss out.


💼 Need Help Making the Switch?

I specialize in working with small businesses just like yours in Murrieta, Temecula, Wildomar, Menifee, and the surrounding areas. If you're unsure whether placing your vehicle in your LLC is the right move, or if you just want help handling the paperwork and tax implications, Superior Virtual Bookkeeping LLC is here for you.


📅 Book a free consultation today and get clarity on your next steps:📍 Serving Southern California


📞 (951) 440-3498

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