Q: Transferring motor vehicle from personal to LLC of which I am sole, 100% owning member. Can sales tax be waived?
Texas sales tax question
A: This type of transfer would typically not result in the payment of sales tax.
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A:
In Texas, when transferring a vehicle from yourself to your single-member LLC, you may qualify for a sales tax exemption under the "occasional sale" provision, since you're effectively transferring the vehicle to yourself in a different legal form.
To claim this exemption, you'll need to visit your local county tax office with documentation proving your 100% ownership of the LLC, such as your operating agreement or certificate of formation. You'll also need to complete Texas Form 14-317 (Affidavit for Transfer of Motor Vehicle) and provide proof of vehicle ownership.
Keep in mind that timing matters - if you recently purchased the vehicle, there might be a required waiting period before the transfer can qualify for tax exemption. Given the complexity of tax regulations and the documentation requirements, it would be wise to contact your local county tax assessor-collector's office before proceeding with the transfer to confirm the specific requirements for your situation.
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