How to Transfer a Car Title to an LLC in Texas
Transferring a personal vehicle to your LLC in Texas involves a title change at Texas DMV / County Tax Office, potential sales/use tax, a new insurance policy, and — if financed — lienholder coordination. Here is exactly what to expect.
Consult a tax professional in Texas 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 Texas
Texas tax treatment of personal-to-LLC transfers is complex. Texas generally treats a transfer from an individual to their LLC as a taxable event at 6.25% of the vehicle's market value (using Standard Presumptive Value as a floor). Some exceptions exist for wholly-owned single-member LLCs — consult a Texas tax professional or the Texas Comptroller's office for your specific situation.
Outstanding loan must be refinanced into LLC name — personal auto loans typically cannot be assumed by an LLC
Personal auto insurance does NOT cover an LLC-owned vehicle in Texas. Commercial auto insurance or a business-use policy in the LLC's name is required before transfer. Contact your insurer at least 2 weeks in advance.
Gather: Current Texas title (signed by individual owner); Form 130-U (Application for Texas Title) — LLC as buyer; LLC Certificate of Formation or Operating Agreement; Texas Comptroller Webfile number (for tax account); Proof of commercial auto insurance in LLC name; Payment for title fee and applicable sales/use tax.
The individual owner signs the current title. The LLC is listed as the buyer on Form 130-U. The person signing on behalf of the LLC must indicate their authority (manager, member, or officer). Submit at the county tax-assessor-collector office. Pay $28–$33 title fee plus any applicable taxes.
Required Documents in Texas
- 1Current Texas title (signed by individual owner)
- 2Form 130-U (Application for Texas Title) — LLC as buyer
- 3LLC Certificate of Formation or Operating Agreement
- 4Texas Comptroller Webfile number (for tax account)
- 5Proof of commercial auto insurance in LLC name
- 6Payment for title fee and applicable sales/use tax
Personal auto insurance does NOT cover an LLC-owned vehicle in Texas. Commercial auto insurance or a business-use policy in the LLC's name is required before transfer. Contact your insurer at least 2 weeks in advance.
Texas's 6.25% tax on vehicle transfers to an LLC can be a significant cost. On a $50,000 vehicle, that's $3,125 in tax. Weigh this cost against the liability protection benefit of holding the vehicle in an LLC. For vehicles used primarily for personal transportation, the tax cost may outweigh the benefit.
Texas Car Title to LLC FAQ
How do I transfer a car title to my LLC in Texas?
Sign the current title as the individual seller naming your LLC as the buyer. Complete Form 130-U (Application for Texas Title) — LLC as buyer at Texas DMV / County Tax Office. The individual owner signs the current title. The LLC is listed as the buyer on Form 130-U. The person signing on behalf of the LLC must indicate their authority (manager, member, or officer). Submit at the county tax-assessor-collector office.
Will I owe taxes when transferring my car to an LLC in Texas?
Standard 6.25% motor vehicle sales/use tax typically owed. Texas generally treats a transfer from an individual to their LLC as a taxable event at 6.25% of the vehicle's market value (using Standard Presumptive Value as a floor). Some exceptions exist for wholly-owned single-member LLCs — consult a Texas tax professional or the Texas Comptroller's office for your specific situation.
What happens to my car loan if I transfer the title to an LLC in Texas?
Outstanding loan must be refinanced into LLC name — personal auto loans typically cannot be assumed by an LLC
Do I need a new insurance policy when I transfer my car to an LLC in Texas?
Personal auto insurance does NOT cover an LLC-owned vehicle in Texas. Commercial auto insurance or a business-use policy in the LLC's name is required before transfer. Contact your insurer at least 2 weeks in advance.
What documents are needed to transfer a car title to an LLC in Texas?
Required: Current Texas title (signed by individual owner); Form 130-U (Application for Texas Title) — LLC as buyer; LLC Certificate of Formation or Operating Agreement; Texas Comptroller Webfile number (for tax account); Proof of commercial auto insurance in LLC name; Payment for title fee and applicable sales/use tax.
How much does it cost to transfer a car title to an LLC in Texas?
$28–$33 title fee. Standard Texas title fee plus 6.25% motor vehicle tax on the vehicle's Standard Presumptive Value (unless an exemption is documented). This can be substantial for high-value vehicles.