I own an LLC business. I have a truck and trailer that I use in my business. Is it better to have them registered under the business name or my personal name. I have commercial insurance on both of them. Which way are you more protected if there is a lawsuit.
2 Answers from Attorneys
More facts are needed here, but the biggest question would be what kind of lawsuit are you concerned about? Personal? Against the LLC? For what?
An accident? Getting sued by a customer? It all makes a difference. A big benefit for your LLC to own the truck and trailer you use in your business is the cost savings from tax deductions, which you should discuss with your accountant. Also, if the LLC owns them, your personal assets such other cars, your home and bank accounts are probably safe because in a LLC, personal assets are not subject to business liabilities. Therefore, if you have an accident, and the vehicle is owned by the LLC, your personal assets may be protected. Notice we are using the term "owned". Who owns the truck and trailer? If you do, then you and the LLC could be joint and severally responsible for damage. Same for personal lawsuits. I suggest you see an attorney and an accountant to help you with this decision. There are a lot of variables to consider.
DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed on the basis of this posting.
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