As I understand it, LLC = Limited Liability Company.
I'm assuming that dentract meant a UK limited company, but NLUK is correct: if they're setting up an LLC (registered in the US) then things get a lot more complicated!
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "Purchasing a car through a newly registered LLC"
Collapse
-
Why are you setting up an LLC?
Hobnobs advice is for a LTD because there are certain tax advantages. I know nothing about an LLC so you need to check that expenses and cars are treated the same way. All the advice on here is for LTD only. You can't buy a car with a company that has no money so I assume you are talking about using the LLC to finance a car which is awhole different set of answers to buying one (assumed to be with spare cash) so need to be clear on exactly what you are planning on doing.
I assume an LLC needs an accountant so the quick answer is speak to your accountant.
Leave a comment:
-
Welcome to the forum
First up, I suggest doing a search, so that you can read up on previous discussions. The best way to do that is to go to Google, then search for:
"company car" site:forums.contractoruk.com
(That works better than the built-in search method, and you can substitute other phrases.)
Looking at one of your questions in particular:
Q: Can I purchase a car through the company?
A: If you're paying for it upfront, no problem. If you want to get a loan for a newly formed company, I think that's unlikely.
More generally, you need to think about who owns the car, and who will be using it (i.e. you or the company).
* If you own it, and it's used for company journeys, you can claim expenses for mileage. (But make sure your insurance policy covers that.)
* If you own it, and it's used for personal journeys, you pay all the costs.
* If the company owns it, and it's used for company journeys, the company pays all the costs.
* If the company owns it, and it's used for personal journeys, there will be a Benefit in Kind. NB This is based on the original purchase price of the car, so you could get a high tax bill for personal use.
My advice is to pay for the car yourself (when you can afford it), then claim expenses where applicable. If you're having trouble with your credit rating, there are 3 companies that will give you free reports (Experian, Credit Karma, and Clearscore) so look at them and see what you can change.
Leave a comment:
-
Purchasing a car through a newly registered LLC
I'm about to register an LLC for my work, and I was wondering if it's possible to purchase a new (or used if possible) car through the LLC.
My personal credit history is bad, but income is not low. What are the chances of purchasing a car through the LLC and what are the tax implications?
I'd really like to replace my 14 year old carTags: None
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: