How to Transfer a Car Title to an LLC in California
Transferring a personal vehicle to your LLC in California involves a title change at California DMV, potential sales/use tax, a new insurance policy, and — if financed — lienholder coordination. Here is exactly what to expect.
Consult a tax professional in California before transferring a vehicle to your LLC. Tax treatment of personal-to-LLC transfers is complex and varies by LLC structure. This guide provides a general overview — not tax advice.
How to Transfer the Title to Your LLC in California
California tax treatment of personal-to-LLC transfers is complex. California does NOT automatically exempt transfers from an individual to their own LLC from use tax. If you're the sole member of a single-member LLC (SMLLC), you may qualify for a "transfer to disregarded entity" exemption — consult a tax professional or CDTFA before completing the transfer.
Lender must release lien and reissue to LLC — typically requires refinancing
Commercial auto insurance or a business-use policy in the LLC's name is required once the title is in the LLC. Personal auto insurance policies typically do not cover LLC-owned vehicles. Contact your insurer before the transfer.
Gather: Current California title (signed by individual owner); REG 343 (Application for Title) — LLC as recipient; LLC Operating Agreement (to verify LLC exists and officer authority); California Secretary of State LLC filing number; Proof of LLC insurance for the vehicle; Use tax determination or CDTFA exemption documentation (if applicable).
The existing individual owner signs the current title. The LLC is listed as the buyer on REG 343. The LLC must have an active California registration. The LLC officer/manager completes and signs REG 343 on behalf of the LLC. Pay $21 title fee plus any applicable taxes.
Required Documents in California
- 1Current California title (signed by individual owner)
- 2REG 343 (Application for Title) — LLC as recipient
- 3LLC Operating Agreement (to verify LLC exists and officer authority)
- 4California Secretary of State LLC filing number
- 5Proof of LLC insurance for the vehicle
- 6Use tax determination or CDTFA exemption documentation (if applicable)
Commercial auto insurance or a business-use policy in the LLC's name is required once the title is in the LLC. Personal auto insurance policies typically do not cover LLC-owned vehicles. Contact your insurer before the transfer.
California's use tax treatment of personal-to-LLC transfers is complex. For a single-member LLC treated as a disregarded entity, you may avoid use tax by documenting the transfer correctly with CDTFA. For multi-member LLCs or if the LLC is a C or S corp, use tax is almost certainly owed. Get professional tax advice before proceeding.
California Car Title to LLC FAQ
How do I transfer a car title to my LLC in California?
Sign the current title as the individual seller naming your LLC as the buyer. Complete REG 343 (Application for Title) — LLC as recipient at California DMV. The existing individual owner signs the current title. The LLC is listed as the buyer on REG 343. The LLC must have an active California registration. The LLC officer/manager completes and signs REG 343 on behalf of the LLC.
Will I owe taxes when transferring my car to an LLC in California?
Use tax typically owed — no automatic exemption. California does NOT automatically exempt transfers from an individual to their own LLC from use tax. If you're the sole member of a single-member LLC (SMLLC), you may qualify for a "transfer to disregarded entity" exemption — consult a tax professional or CDTFA before completing the transfer.
What happens to my car loan if I transfer the title to an LLC in California?
Lender must release lien and reissue to LLC — typically requires refinancing
Do I need a new insurance policy when I transfer my car to an LLC in California?
Commercial auto insurance or a business-use policy in the LLC's name is required once the title is in the LLC. Personal auto insurance policies typically do not cover LLC-owned vehicles. Contact your insurer before the transfer.
What documents are needed to transfer a car title to an LLC in California?
Required: Current California title (signed by individual owner); REG 343 (Application for Title) — LLC as recipient; LLC Operating Agreement (to verify LLC exists and officer authority); California Secretary of State LLC filing number; Proof of LLC insurance for the vehicle; Use tax determination or CDTFA exemption documentation (if applicable).
How much does it cost to transfer a car title to an LLC in California?
$21 title fee. Standard $21 California title fee applies. Use tax (7.25%–10.75% of vehicle value) may also apply unless an exemption is documented.