How to Transfer a Car Title to an LLC in Illinois
Transferring a personal vehicle to your LLC in Illinois involves a title change at Illinois Secretary of State, potential sales/use tax, a new insurance policy, and — if financed — lienholder coordination. Here is exactly what to expect.
Consult a tax professional in Illinois 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 Illinois
Illinois tax treatment of personal-to-LLC transfers is complex. Illinois treats a personal-to-LLC transfer as a private party vehicle use tax event. Illinois uses a flat fee structure based on vehicle value — not a percentage. This can be more or less expensive than a percentage depending on vehicle value. Consult the Illinois Department of Revenue for your specific situation.
Personal auto loans must be paid off or refinanced — cannot transfer to LLC
Illinois requires commercial or business-use insurance in the LLC's name once the title transfers. Personal auto policies typically exclude LLC-owned vehicles. Arrange coverage before the Secretary of State appointment.
Gather: Current Illinois title (signed by individual); VSD 190 (Vehicle Transaction Application) — LLC as owner; LLC Articles of Organization (from Illinois SOS); RUT-50 (Private Party Vehicle Use Tax) or applicable tax form; Commercial auto insurance in LLC name; Valid ID of LLC manager/member signing on behalf of LLC.
The individual owner signs the current title. The LLC is listed on VSD 190 as the new owner. The LLC's authorized member/manager signs on behalf of the LLC. Submit at a Secretary of State facility. Pay $150 title fee plus any applicable taxes.
Required Documents in Illinois
- 1Current Illinois title (signed by individual)
- 2VSD 190 (Vehicle Transaction Application) — LLC as owner
- 3LLC Articles of Organization (from Illinois SOS)
- 4RUT-50 (Private Party Vehicle Use Tax) or applicable tax form
- 5Commercial auto insurance in LLC name
- 6Valid ID of LLC manager/member signing on behalf of LLC
Illinois requires commercial or business-use insurance in the LLC's name once the title transfers. Personal auto policies typically exclude LLC-owned vehicles. Arrange coverage before the Secretary of State appointment.
Illinois's flat use tax structure can be advantageous for high-value vehicles. A $100,000 vehicle might pay a flat fee capped at $1,500 rather than 6.25% = $6,250. Verify the flat fee table with IDOR before your transfer to calculate the actual cost advantage.
Illinois Car Title to LLC FAQ
How do I transfer a car title to my LLC in Illinois?
Sign the current title as the individual seller naming your LLC as the buyer. Complete VSD 190 (Vehicle Transaction Application) — LLC as owner at Illinois Secretary of State. The individual owner signs the current title. The LLC is listed on VSD 190 as the new owner. The LLC's authorized member/manager signs on behalf of the LLC. Submit at a Secretary of State facility.
Will I owe taxes when transferring my car to an LLC in Illinois?
Private Party Vehicle Use Tax (flat fee) typically owed. Illinois treats a personal-to-LLC transfer as a private party vehicle use tax event. Illinois uses a flat fee structure based on vehicle value — not a percentage. This can be more or less expensive than a percentage depending on vehicle value. Consult the Illinois Department of Revenue for your specific situation.
What happens to my car loan if I transfer the title to an LLC in Illinois?
Personal auto loans must be paid off or refinanced — cannot transfer to LLC
Do I need a new insurance policy when I transfer my car to an LLC in Illinois?
Illinois requires commercial or business-use insurance in the LLC's name once the title transfers. Personal auto policies typically exclude LLC-owned vehicles. Arrange coverage before the Secretary of State appointment.
What documents are needed to transfer a car title to an LLC in Illinois?
Required: Current Illinois title (signed by individual); VSD 190 (Vehicle Transaction Application) — LLC as owner; LLC Articles of Organization (from Illinois SOS); RUT-50 (Private Party Vehicle Use Tax) or applicable tax form; Commercial auto insurance in LLC name; Valid ID of LLC manager/member signing on behalf of LLC.
How much does it cost to transfer a car title to an LLC in Illinois?
$150 title fee. Standard Illinois $150 title fee plus applicable Private Party Vehicle Use Tax (flat fee based on purchase price). Illinois' flat fee structure is unusual and potentially advantageous for high-value vehicles.