To purchase a vehicle that belongs to your company, the company must be registered as an LLC or another legal business entity. You should also have an Employer Identification Number from the IRS; you can apply for one online, free of charge. The type of vehicle you choose should clearly benefit the business.

Can I write-off a vehicle purchase for work?

If you buy a car that you intend to use for business, you can write off some of the purchase price with the federal Section 179 deduction. You usually write off business purchases through depreciation, but Section 179 allows you to deduct the entire amount upfront.

Can a company purchase a vehicle for business?

Before you can purchase a vehicle in your company’s name, your company must be registered with your state as a separate business entity apart from you. If you operate as a sole proprietor you can still purchase a vehicle and use it for business, but you’ll be personally liable for the vehicle.

What is the company vehicle policy for employees?

The [company name] company vehicle policy gives employees guidelines for obtaining, qualifying for, and using a company vehicle. A “company vehicle” is any vehicle [company name] assigns to employees. This policy applies to all employees who use a company vehicle, and applies during and outside of working hours.

What are the responsibilities of a company car?

Every driver of a company vehicle is expected to maintain his or her assigned vehicle in a safe operating condition. Maintenance schedules outlined in your vehicle’s owner manual should be adhered to and along with documentation that prescribed service work was completed.

What happens if an employee drives a company car?

Paying fines employees accumulate while driving company cars that they are responsible for (e.g. for driving too fast.) Bailing out employees arrested while driving company cars. Cars are harmful to our environment and costly to use. We’ll try to provide employees with eco-friendly cars when possible.