Reviewed by Arya Keshavarzian, Co-Founder
Company name or your own name?
A business lease puts the car in the company’s name, and the company makes the payments. A personal lease puts it in yours. Many business owners lease personally and claim the business use on their own return. Which is better depends on how your business is set up, so ask your accountant before you choose.
Leasing for your company or LLC?Request a business application
A separate application
Business leases do not use our standard credit application. Tell us the car and the company name, and we send you the business application.
A personal guarantor is always required
Every business lease needs a personal guarantor, usually an owner of the company. The guarantor agrees to cover the lease if the business does not, so their personal credit is part of the approval. This applies whether the business is brand new or well established.
What lenders usually look at
- The company’s legal name, entity type and tax ID (EIN)
- How long the business has been operating
- The guarantor’s personal credit and income
- Sometimes business bank statements or tax returns
Each lender sets its own requirements, and approval is always the lender’s decision.
Deducting the lease payments
If the car is used for business, the business-use share of the lease payments is generally deductible. If you use the car 70% for business, about 70% of the payments may be deductible. Keep a mileage log to back up the business use. On pricier cars, IRS rules can reduce the deduction through an “inclusion amount” (see IRS Publication 463). Buying instead of leasing works differently: see Section 179 vehicles.
Lease or buy for a business?
Leasing keeps the monthly cost fixed and lets you change cars every few years. Buying or financing can unlock larger first-year write-offs on heavy SUVs. We help with both, so we can price the same car each way. See lease or buy for the general comparison.
This guide is general information, not tax or legal advice. Talk to your CPA about your situation.
Get started
Browse the luxury SUV lease deals, or tell us the car and your company name and we will send the business application.