What you need to do to put a car in your LLC's name
Transferring a car title to your LLC requires you to file paperwork with your state's Department of Motor Vehicles (or equivalent agency) and pay a transfer fee. The exact steps and cost depend on your state, whether your LLC is already registered, and whether the car has a loan against it. Most states let you do this by mail or online, though some require an in-person visit.
The process is not automatic when you form an LLC — you have to actively transfer the title yourself. If you skip this step, the car remains in your personal name even though you own the LLC, which defeats the liability protection that owning a business vehicle through an LLC can provide.
Key Takeaways
- Your state's DMV is the only body that can transfer a car title, and you must submit their specific form along with proof of ownership and a fee.
- If the car has a loan, the lender must consent to the transfer and may require the loan to be paid off first.
- You will need your LLC's EIN (Employer Identification Number) from the IRS and proof that your LLC is registered in your state.
- The transfer fee varies by state, typically ranging from under $50 to several hundred dollars depending on the vehicle's value.
- After the transfer, your insurance company must be notified so the policy reflects the LLC as the owner.
Gather the documents your DMV will require
Before you contact your state's DMV, collect the current title, your LLC's EIN, and proof of your LLC's registration. The EIN comes from the IRS — if you have not received one yet, you can request it online at irs.gov or by mail. Proof of registration is usually a certificate of formation or a letter from your state's Secretary of State office confirming your LLC exists.
You will also need the specific form your state uses for title transfers. Most states have a form for transferring ownership between parties (sometimes called a "title transfer" or "assignment of title" form), and you will fill in your LLC as the new owner. Some states have a separate form for business entities. Check your state DMV's website or call their main line to confirm which form applies to your situation.
If the car has a lien (a loan against it), contact the lender before you start. Some lenders will not allow a title transfer while the loan is active, and others require written consent. Get this in writing so you can submit it with your paperwork.
Handle the loan situation if one exists
A lien on the title means a bank or finance company has a legal claim to the car until the loan is paid off. Most lenders will not consent to a title transfer to an LLC while the lien is active because they want to maintain their security interest in the vehicle.
Your options are to pay off the loan in full before transferring the title, or to ask the lender in writing whether they will allow the transfer and whether they require any additional paperwork. Some lenders will agree if you provide proof that the LLC is solvent and insured. Get any consent in writing and keep it with your transfer documents.
If the lender refuses and you cannot pay off the loan, you may not be able to transfer the title until the loan is satisfied. In that case, the car remains in your personal name until the debt is cleared.
Submit the transfer paperwork to your state DMV
The submission process varies by state. Some states accept mail-in applications with the title, the completed transfer form, proof of your LLC's existence, and a check for the transfer fee. Others require you to visit a DMV office in person. A few states now allow online submission through their portal.
Check your state's DMV website for the exact address to mail documents to, or whether you need to schedule an appointment. Include a cover letter listing what you are submitting so the DMV staff can process your request without delay. Keep a copy of everything you send.
Processing times vary widely — some states issue a new title within two weeks, while others take six to eight weeks. Contact the DMV after four weeks if you have not heard back, and ask for a status update using your process number or VIN.
Update your insurance after the title transfers
Once you receive the new title in your LLC's name, contact your insurance company when ready. The policy must list your LLC as the owner and the insured party, not you personally. Failing to update this can create problems if you file a claim — the insurer may deny coverage if the policyholder does not match the title holder.
Your insurance agent can make this change over the phone or online in most cases. You will need to provide the new title or a copy of it. Some insurers may ask for proof of your LLC's registration as well. The change usually takes effect the same day or within 24 hours.
Understand the cost and tax implications
The transfer fee charged by your state DMV depends on the vehicle's value, your state's fee structure, and whether you are transferring a lien. Fees typically range from $25 to $300, though some states charge more for high-value vehicles. Contact your DMV directly for the exact fee in your situation.
Transferring a title to an LLC does not trigger federal income tax, but some states charge a sales tax or use tax on the transfer. A few states exempt transfers between related parties or to business entities, while others do not. Ask your DMV whether your state charges tax on this type of transfer, and whether you need to file any additional forms with your state tax authority.
If you are using the LLC for business purposes (like a delivery service or rental fleet), you may also be able to deduct vehicle expenses on your business tax return. Consult a tax professional about what you can deduct and whether transferring the title affects your deductions.
What happens if you do not transfer the title
If you own an LLC but keep the car in your personal name, you lose the main reason to use an LLC for business assets: liability protection. If someone is injured in an accident involving the car, they could sue you personally and potentially reach your personal assets, even though you own the vehicle through a business entity.
Additionally, if your LLC is sued for other business reasons, a creditor could potentially claim the car as a personal asset because it is titled in your name. Transferring the title is a straightforward way to keep the vehicle and the LLC legally separate.
Frequently Asked Questions
Can I transfer a title to an LLC that is not yet registered?
No. Your LLC must be officially registered with your state before you can transfer a title to it. The DMV will ask for proof of registration, usually a certificate of formation or a letter from your Secretary of State. Form and register your LLC first, then transfer the title.
Do I need a new title if I already own the car outright?
Yes. You must file a title transfer form with your state DMV and pay the transfer fee. The DMV will issue a new title document showing your LLC as the owner. The old title in your personal name becomes invalid once the transfer is complete.
What if my state does not have an online DMV portal?
You can mail your documents to the address listed on your state's DMV website, or visit a DMV office in person. Call the DMV's main line to confirm the mailing address and whether you need an appointment for an in-person visit. Mail is usually slower but works if you cannot visit an office.
Can I transfer the title if the car is financed through a dealership?
Only if the lender agrees. Contact the finance company or dealership in writing and ask whether they will consent to a title transfer to your LLC. Some will, some will not. Get their answer in writing before you submit paperwork to the DMV, because you may need to include their consent letter.
Will transferring the title to my LLC affect my car insurance rates?
Not directly. Your rates depend on the vehicle, your driving record, and your location — not on whether the title is in your name or your LLC's name. However, you must notify your insurer of the change so they can update the policy. Failing to do so could cause them to deny a claim.