Best way to purchase a work vehicle through business....

[03ozwhip]

I'm not sure what section to put this in, but I am starting a business. I want to buy a work vehicle specifically for this business.

I dont have a business account yet, but I want to take advantage of the perks of buying a vehicle through the business (write off and any other kind of perks there may be.)

I know very little about these kinds of things right now and I'm starting at the bottom. Any advice would be appreciated.

[ExtraSlow]

This is exactly what your accountant is for.

[03ozwhip]

This is exactly what your accountant is for.

Ya, I'm just starting out, I dont have an accountant yet.

[revelations]

Usually this means setting up a holding company and the costs associated to do this dont make sense unless youre pulling in, or going to pull in, serious cash (usually over 100k) .... if so, definitely consult with a specialist.

[03ozwhip]

Usually this means setting up a holding company and the costs associated to do this dont make sense unless youre pulling in, or going to pull in, serious cash (usually over 100k) .... if so, definitely consult with a specialist.

Ya obviously it will vary but should be way north of 100k. I'm talking to a friend of mine that was an accountant, so hes shown me a few things. Getting an accountant is just one other thing I have to do.

I have other things to set in place first.

[ExtraSlow]

A good accountant should be one of your first steps. Before you incorporate. They can help you with share structure and other important foundational decisions.

[03ozwhip]

A good accountant should be one of your first steps. Before you incorporate. They can help you with share structure and other important foundational decisions.

Good to know. I haven't started yet, so I haven't pulled any money in yet, so I was kind of waiting for that before I saw an accountant. Thought that was the right thing to do lol

[ExtraSlow]

You need to be incorporated before you start making money, and you need the advice before you incorporate.

Or that's how I suggest you do it. I'm no expert. I'm probably the least successful business owner on beyond. My company loses money every year.

[Buster]

If you're buying a vehicle for the business on Day1, then your professional advice (lawyers and accountants), are easily justifiable expenses, IMO. Even if they just tell you to wait to incorporate.

[03ozwhip]

If you're buying a vehicle for the business on Day1, then your professional advice (lawyers and accountants), are easily justifiable expenses, IMO. Even if they just tell you to wait to incorporate.

Thanks for the help guys, good info. ExtraSlow dont bear yourself up too much, you know what you're talking about most of the time lol

[TomcoPDR]

You need to be incorporated before you start making money, and you need the advice before you incorporate.

Or that's how I suggest you do it. I'm no expert. I'm probably the least successful business owner on beyond. My company loses money every year.

Lots of successful dd has businesses that lose money, their lifestyle are quite well.

[Jlude]

If you need some advice/help, PM me. I'm not an accountant, but do have several businesses and have done the research to ensure that I'm as "tax efficient" as possible.

[gwill]

Do you actually need a new vehicle? With my one business I took a paid off vehicle and leased it to my company for a certain amount each month.

Your accountant will tell you right away what the best way to approach the vehicle purchase will be...

It's really odd the first priority your wanting to sort out is how to buy a vehicle in the business. I know my accountant sat me down and gave me a run down on all the common mistakes most small business owners make and what to avoid. Vehicle purchases were one of the bigger issues.

Sit with your accountant. Have a chat on your business and its needs and put it all on the table on how to write most of your expenses off. Theyll let you know what you can do.

[03ozwhip]

If you need some advice/help, PM me. I'm not an accountant, but do have several businesses and have done the research to ensure that I'm as "tax efficient" as possible.

Much appreciated. When I have more questions, I'll let you know.

- - - Updated - - -


Do you actually need a new vehicle? With my one business I took a paid off vehicle and leased it to my company for a certain amount each month.

Your accountant will tell you right away what the best way to approach the vehicle purchase will be...

It's really odd the first priority your wanting to sort out is how to buy a vehicle in the business. I know my accountant sat me down and gave me a run down on all the common mistakes most small business owners make and what to avoid. Vehicle purchases were one of the bigger issues.

Sit with your accountant. Have a chat on your business and its needs and put it all on the table on how to write most of your expenses off. Theyll let you know what you can do.

Well my business requires a truck, which I dont have and without it, the business wouldnt exist. It is a mobile business, so, not odd at all.

Unless you have a way I can strap a 1 ton welder on top of my 535 lol

[ExtraSlow]

ExtraSlow dont beat yourself up too much, you know what you're talking about most of the time lol In fact, I have that on my resume!

[Maxt]

I'm not sure what section to put this in, but I am starting a business. I want to buy a work vehicle specifically for this business.

I dont have a business account yet, but I want to take advantage of the perks of buying a vehicle through the business (write off and any other kind of perks there may be.)

I know very little about these kinds of things right now and I'm starting at the bottom. Any advice would be appreciated.
There aren't really any lawful perks to a business vehicle, since all non business use has to be declared as personal, taxable benefit. The only real perk for a lot of people, is driving a newer nice vehicle around. If you have business vehicles, you have to be able to justify all the mileage on it and what you did with it.
Its also advisable to have other vehicles other than your work one to keep that separation apparent. I have my business vehicles, and then I have 3 other personally owned vehicles for my own use.

[03ozwhip]

There aren't really any lawful perks to a business vehicle, since all non business use has to be declared as personal, taxable benefit. The only real perk for a lot of people, is driving a newer nice vehicle around. If you have business vehicles, you have to be able to justify all the mileage on it and what you did with it.
Its also advisable to have other vehicles other than your work one to keep that separation apparent. I have my business vehicles, and then I have 3 other personally owned vehicles for my own use.

Maybe I should have clarified earlier, this is a work truck only. A welding rig. It will be used for back and forth to site and on site, strictly a work truck.

[ExtraSlow]

Another thing to consider is that a new small business probably doesn't have the ability to actually buy a vehicle. So you end up buying it personally and being paid back by the business.

[03ozwhip]

Another thing to consider is that a new small business probably doesn't have the ability to actually buy a vehicle. So you end up buying it personally and being paid back by the business.

Ya that's right, I would have to move from personal to business, but I'm not sure that's the right move either. I will be contacting an accountant next week and go from there.

[pheoxs]

Another thing to consider is that a new small business probably doesn't have the ability to actually buy a vehicle. So you end up buying it personally and being paid back by the business.

Same as your busines credit card. When you first incorporate your business has no credit history so you’ll need to use your own credit history and personally guarantee the card incase your company defaults

[ExtraSlow]

Same as your busines credit card. When you first incorporate your business has no credit history so you’ll need to use your own credit history and personally guarantee the card incase your company defaults
One way or the other, it's personal money. There's lots of ways to do it, but choosing the best one isn't immediately clear without some advice.

[HiTempguy1]

There aren't really any lawful perks to a business vehicle, since all non business use has to be declared as personal, taxable benefit. The only real perk for a lot of people, is driving a newer nice vehicle around. If you have business vehicles, you have to be able to justify all the mileage on it and what you did with it.
Its also advisable to have other vehicles other than your work one to keep that separation apparent. I have my business vehicles, and then I have 3 other personally owned vehicles for my own use.

Basically this.

My personal truck is used about 25/75 between personal use and business use (the truck doesn't see much mileage, maybe 10k kms per year total). I keep a mileage log when doing business, and claim the fuel receipts for business use. It's not very often I need my truck for personal use, but having it be an actual company truck would be a pain as then you need to be reaaaallly accurate with your log and you are getting writeoffs based on XXcents/km compared to just writing off fuel and splitting maintenance costs.

One thing you don't want to do is piss the CRA off. They will fuck you 6 ways from Sunday with no recourse. An accountant is so cheap, I'd go in for a consult. Well worth the couple hundred to help setup your business.

[ExtraSlow]

An accountant is so cheap, I'd go in for a consult. Well worth the couple hundred to help setup your business.Some accountants don't even charge for business setup advice. I got 90 minutes of my guys time "for free" when I started up and he was really helpful on a few details.

[schurchill39]

a good accountant should be one of your first steps. Before you incorporate. They can help you with share structure and other important foundational decisions.

qft