There are several factors to consider if you are considering whether to buy or lease a vehicle that will be used in your Florida business. This includes which one gives the better tax breaks for your Florida Incorporation or LLC. We want to help you take advantage of any tax incentives that help your business grow and make a choice that best fits your needs.
There are pros and cons for business car leasing vs. buying. Either way, you’ll need reliable transportation for goods and services.
That is why we have compiled some key points you need to know for vehicle leasing in Florida. Read on why you should lease a car for your Florida Incorporation, LLC, or small business.
Florida Incorporation, LLC, and Small Business Needs
There is no question that a business needs a reliable car for SWFL. You might be wondering if a vehicle lease agreement is the right choice. There are many benefits to leasing a commercial vehicle for your business.
These benefits include:
- Advertisement for a company when the car has wrapping
- Quick and reliable transportation to outreach events or appointments
- Service more areas and expand your clientele
- Protect you and your employee’s personal assets
- Set a professional tone for your brand name and reputation
There is little risk when deciding to increase your fleet size. Also, you will have the chance to receive tax incentives.
Tax Incentives When Leasing a Vehicle
When tax season rolls around, you can deduct all business expenses. Certain factors play into how much you can deduct. Some factors are mileage details, personal/business use, and more.
You can also include the cost of business expenses for gas, oil, and car repairs. It is important to remember that you can only deduct business use from your lease. Tax deductions do not apply to the personal use of a lease.
Another tip to consider when leasing a business car is tax laws vary with cross-state driving.
Getting Ready to Lease: Details to Consider
So how do you go about vehicle leasing for your business? A business owner will lease a car and pay for the month-to-month payment. They will also need to buy full-coverage business car insurance.
From there, the business owner should track their fleet’s business expenses. A great way to do this is to keep mileage records from every use. A simple report can be in the vehicle, and employees will input the start and end mileage.
Beyond car insurance, you will want to have roadside help. AAA offers corporate membership for organizations that need roadside help coverage. Another tip is to hire a bookkeeper to track gas receipts, car repairs, and other fleet expenses.
How We Can Help
You now have all the details on leasing a vehicle for your business. Need more business help? We’re here to help!
Florida Incorporation and LLC businesses are benefiting from our all-business services. We specialize in payroll, accounting, taxes, and more. We want to help you grow and expand your business.
Are you still not sure if we’re the right fit? Check out our client testimonials for an honest peek into what to expect.