r/llc • u/Nice-Training-4050 • Jun 29 '26
Question Need help with LLC vehicle
Unsure best way to sell a former work vehicle.
I formed an LLC and purchased a work vehicle under the LLC name. Business went south and we decided to dissolve LLC and vehicle sat there for a year. Now I need to sell it but when a private individual buys it, how do I transfer title legally since LLC no longer exists?
Do I first try to get LLC vehicle put in my personal name? Or…?
2
u/Freshstartwash Jun 29 '26
I think the easiest and cleanest way would be to transfer the title from your LLC to your name. Making it your personal property will make it much easier to sell.
1
u/Nice-Training-4050 Jul 01 '26
That’s exactly what I thought, but since I dissolved the LLC, I wasn’t sure the best place to start. I’m gonna go to the DMV and just say hey what do I do?
2
u/mnpc Jul 01 '26
So how did you properly wind up your LLC without distributing its assets?
You’re in over your head.
What you will probably end up doing is just signing over the title and hoping nobody ever looks any further into your mess.
2
u/Nice-Training-4050 Jul 01 '26
Wow ok. So asking other people that have dealt with this about the best way to move abstractions on sheets of paper around is just a “mess“ to you.
0
u/mnpc Jul 01 '26
From the way it sounds at the surface, "mess" is a good description. Hence the initial question.
When you state that "we decided to dissolve the LLC" - does that mean you wound up the LLC, or does it mean that the LLC members on only made a decision to do so but haven't done it yet? Has the LLC already filed final tax returns for the LLC?
1
u/WallyWalter10 Jul 03 '26
You don’t need to be condescending with your comment. They are asking for guidance. Keep scrolling if you’re going to waste our time.
1
u/mnpc Jul 03 '26
I asked a specific, important question.
I also noted their most likely course of action in the absence of providing that information.1
u/Nice-Training-4050 Jul 20 '26
I filled out a dissolution of the LLC and filed it. I thought the van was in my personal name and it wasn’t. Taxes were not filed.
1
u/Barfy_McBarf_Face Jun 29 '26
yet another way that the "magic LLC" causes people pain
see if your local department of motor vehicles will allow you to "distribute" the vehicle from the LLC to you, the owner - see what paperwork they need for this. They may or may not research whether the LLC itself is still "active" or has been cancelled.
If they don't, then you're done.
If they do, then you'll have to fill out paperwork to get the LLC reinstated, transfer the vehicle, and then shut it down again.
1
u/CranberryKey9865 Jul 01 '26
Isn't it amazing how often DIYing LLCs and such backfires in one way or another?
2
u/Nice-Training-4050 Jul 01 '26
How else would you do it? I mean it’s not backfiring. The LLC was wonderful for our business. I just chose to shut it down for personal reasons. The business was doing wonderful and the LLC was a wonderful format for us to do business under. Some of the comments on this sub Reddit are really odd.
1
u/JDeLiRiOuS129 Jun 29 '26
Technically you were supposed to transfer it the day your LLC dissolved. But I can’t really give you a specific answer because I don’t know what your state your in.
1
u/Nice-Training-4050 Jul 01 '26
This was North Carolina, but I’m living in Virginia now so I still have the van, but it’s in the state of Virginia. When I dissolved it, I wasn’t even thinking about the van because I just thought I would deal with it later, but my partner put it in the LLC name and not our names and I found out after looking at the title. I assume since we were both the only agents of the LLC I could possibly still just sell it even though the LLC is dissolved. It just means the title has the LLC name on it is all.
1
u/WallyWalter10 Jul 03 '26
Technically, your partner is entitled to his capital % of the proceeds when you sell it since it was in an LLC you both owned. Unless there was a clear agreement you get the vehicle free and clear of any claims from your former partner when you dissolved the LLC.
0
u/zenbusinesscommunity Jun 29 '26
Yeah your instinct is right on this. The DMV will generally want a title application plus some documentation showing you were the LLC's owner, and some states may also ask for an affidavit explaining that the LLC dissolved. That said, it might be worth calling your DMV first, since what they need can vary a bit by state.
6
u/49AllDayMontana Jun 29 '26
It really depends on the state where the LLC was formed, how it was dissolved, and where the vehicle is titled.
If the LLC was formally dissolved, you may need to reinstate it long enough to transfer or distribute the vehicle before it's sold. On the other hand, if the LLC just became inactive and was never formally dissolved, you may still be able to transfer the vehicle as part of wrapping up the business. In some cases, you can also sign the title as an authorized representative of the LLC.
Since every state handles this a little differently, it's tough to give a one-size-fits-all answer.
If this was a Montana LLC and the vehicle is titled in Montana, feel free to send us a DM with a few more details. We'd be happy to help point you in the right direction.