Insurance For Small Business Equipment
Insurance For Small Business Equipment
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Small Business Insurance
If I get a company car, do I HAVE to get commercial insurance?
We are going to be trading in out personal car to get one to use for our small business. It will be used for both personal and business means (like the other one), except the business will be footing the bill (already taked to our accountant and all systems are go!).
What makes it a business venture is we are getting a FULL car wrap with advertising for the company on it (talk about a rolling billboard). Much better than those small magnetic signs that are hard to read.
I started looking around and found commercial insurance is WAY more expensive than personal. We are the only ones going to be driving it, we won’t carry clients in it, we won’t have any equipment in the car, so its just like the old car. So do you think I would need commercial insurance or personal?
Depending on what kind of corporation your set up as may dictate how you can use your deductions, but with that aside, no you don’t have to get commercial insurance. From what I’ve been told from someone in your shoes is that if you don’t need a special license class to drive the vehicle, you don’t need it. If you get commercial insurance though (personal insurance too), you should be able to deduct the cost through and use business pre-tax dollars to pay for it so your actual cost is much lower than it first appears. I hope your are having the business buy the car too instead of your after tax income.
Ask your CPA for exact deductions rules for your corporation.