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    2 Replies Latest reply on Sep 11, 2010 10:29 PM by FirstClassCPA

    Buying a car when owning an LLC?

    JungleJ Newbie
      I own a small business which is an LLC. I do not pay myself checks from my business so How would I go about buying a car since I wont have paystubs or history of getting paid each week?
        • Re: Buying a car when owning an LLC?
          phanio Pioneer
          You could show your income from the business on your tax returns or you can prove income via your bank statements. If you are taking cash and not reporting that - then you are really in trouble.

          If you are trying to get pre-approved - ask your banker or lender what they will accept - most want to see tax returns but some will look at past inflows in your bank account. If you are at the dealer - then they have to follow the requirements of whatever lender they process your loan through. Just call the finance manager there and ask him/her.

          Business Money Today

          • Re: Buying a car when owning an LLC?
            FirstClassCPA Wayfarer
            There are two items you can show the dealer to justify your purchase/lease.
            1) your LLC Tax Return (1120/1120S/1065 depending on how your LLC is classified) and
            2) your K-1 from the LLC. If you are a single member LLC, then it would be your schedule C from your 1040-personal tax return.

            Just a word of advice, you may want to make sure that you follow the formalities of an LLC, in California, in order to keep your entity up to par, an officer who runs the LLC must be paid, especially if the firm is generating some sort of profit, normally the firm is ran by someone, usually an officer. That is if it is to be considered a non-passive activity.