changing van title to rv title???

[trailer-t]

I wonder if you could just form a one person LLC online and title the truck in your LLC
and start some sort of nominal hobby business--like "selling" T-shirts or bumper stickers (even online) or you name it,
and get it insured that way. Nothing says a "business" has to make profit ---unless you are trying to throw off
losses against other income, then the IRS gets curious.

 

[DannyB1954]

The issue is if you convert it to an RV and use it as an RV. The insurance carrier can claim fraud and not pay if you get into an accident. You might get away with it, but it is a gamble. Insurance companies  are willing to take the premium, but then look for a reason not to pay.
Not worth the hassle for me. If I lived in a different State maybe.

 

[Tony's Dream]

When I was thinking of doing a van build, I went to both an insurance agent and the DMV. In Nebraska, they would register it as a RV if it had a bed, stove, and sink permanently mounted inside. The taxes dropped by nearly 75% because it would go from a commercial vehicle to an RV. The insurance agent was a totally different issue. To ensure it, it could not be a self renovation if you installed propane tanks inside or ran propane lines inside the van yourself. Having someone else do the renovation would have added about $5,000 to the cost. The insurance company recommended leaving it as a commercial vehicle, so they could charge commercial fees. Also, if you were in an accident with propane tanks and the tanks blew up.....the insurance company would not cover any damage caused by the explosion.....leaving you a huge liability risk. You had to have the proper documentation to haul propane tanks, again increasing costs.

 

[nature lover]

My new rig started life as a conversion van with a bench seat that folds down to become a bed from the factory. I removed the bed and only have a recliner in it to sleep in with cabinets built in. and other equipment not connected in any way to the van. I don't see how insurance could argue about my use of it, but, I know they can be a pain in the ....

 

[trailer-t]

DannyB1954 Wrote:
The issue is if you convert it to an RV and use it as an RV. The insurance carrier can claim fraud and not pay if you get into an accident. You might get away with it, but it is a gamble. Insurance companies are willing to take the premium, but then look for a reason not to pay.
Not worth the hassle for me. If I lived in a different State maybe.

No you missed my point--I think. I am speaking in response to the post up above on insuring a commercial vehicle. Just have a legitimate business intent.
It may or may not ultimately make profit, AND obviously of course do not commit "fraud"-- The insurance company cannot just terminate the coverage on an insured vehicle because the company is not profitable. I have insured a business trailer with a Sub S Corp which is like an LLC and it is not an issue of how much profit the business makes. ---Except-- they may audit gross sales to set the next year premiums ---- I know that is what they do for product liability in a commercial setting. t

 

[DannyB1954]

No you missed my point--I think.  I am speaking in response to the post up above on insuring a commercial vehicle.  Just have a legitimate business intent.
It may or may not ultimately make profit, AND obviously of course do not commit "fraud"--  The insurance company cannot just terminate the coverage on an insured vehicle because the company is not profitable.  I have insured a business trailer with a Sub S Corp which is like an LLC  and it is not an issue of how much profit the business makes.  ---Except--  they may audit gross sales to set the next year premiums ---- I know that is what they do for product liability in a commercial setting.  t

OK you are two States away from where your business is registered, and the only thing in it is a bedroom kitchen and bath. The insurance company will say isn't it wonderful that you are expanding your business into other States.  They have attorneys on the payroll. you will have to hire one. When you take out a commercial policy they ask where will it be operated. Good luck.

 

[trailer-t]

Why would lawyers be involved? It is a vehicle owned by a business. We delivered a product in several states
but obviously was based in the home state. Interstate commerce is not wrongful.

 

[highdesertranger]

"O, what a tangled web we weave when first we practice to deceive."

"honesty is the best policy"

IMO it's best not to lie.

highdesertranger

 

[trailer-t]

No lie to it. I formed a sub s corp in 2005 that owned a cargo trailer, BBQ smokers etc. Made up recipes for BBQ Sauce and Dry rub which we had for sale.

Lost money for several years. Lots of guys on the BBQ contest circuit have LLCs and sell some product as a part time business. They live out of their
rigs on weekends.

Then sales increased and the thing became profitable. Still in operation under the guy I sold out to, but at first it was not making money.
Had a CPA file tax returns and used Auto Owners Insurance--which was cheap. Just an example of a part time business that can own its
vehicles.

 

[kygreg]

In Kentucky, they will not recognize a self-built RV, but they did register my step van as just a personal-use truck. My insurance company categorized it as commercial, not because it had a business use but because of it's size and weight. Insurance was a bit higher than an equally valued car because of the increased damage the van can inflict on other vehicles in an accident.
I hope S. Dakota will do the same when I make that my home state for boondocking.

 

[ImagineGoTravel]

Also, an "RV" is not allowed to be parked in many city-areas, but a "van" can be parked in any public place.

I have yet to hear of a good reason to register a van as a RV.

Is a camper van considered a Class B RV? When you say but a "van" can be parked in any public place, what type of van are you referring to?

 

[highdesertranger]

IGT what does it say on your registration/title? highdesertranger