Using car for personal and business LLC

[Adi Bajaj]

Hi,

I started an LLC and currently I am also employed. I use car for my personal use and would like to use for business as well. Any ideas to separate expenses so that I can legally use the car for personal as well as business use? Is there a template of agreement that I can use? Thank you in advance!

[Michael Plaks]

@Adi Bajaj

I don't know how your LLC is set up and why you even needed it. A single-owner LLC is usually ignored for tax purposes, known in technical terms as "disregarded entity." If this is your case, you don't need anything more than carefully tracking your business-related miles with an app such as MileIQ. There're tons of mileage tracking apps - google them.

Here is a short article:
https://www.nolo.com/legal-encyclopedia/how-deduct-your-local-business-driving-expenses.html

If your business setup is more complicated, then it's best to consult an accountant.