Selling a junk car that's titled to a business

The rest of this page walks through who counts as the owner, who can sign, what changes when the business is gone, and what each state asks of whoever signs the title.

First, check whose name is really on the title

Pull out the title and read the owner line. Two very different things can look like "the business owns it."

• A business entity. A corporation or LLC is its own legal owner. California's DMV manual says a transfer of a car registered to a business entity needs the business entity's name plus an authorized representative's "countersignature" (California DMV).
• A person doing business as (dba) another name. A sole owner trading under a shop name still owns the car personally. In California that transfer needs only the signature of the individual (California DMV).

So a plumber who titled his van to "Smith Plumbing" as a dba signs it like any private seller. A van titled to "Smith Plumbing LLC" needs the company's name and someone signing on its behalf.

Who is allowed to sign for the company

Florida's rules spell out the signer step in detail. Its title procedure manual says an officer or agent who signs for a corporation or company must write their official title on the paperwork (FLHSMV TL-01).

Florida also checks that the signer really has that power. The DMV can confirm it on Sunbiz, the state's business records site. If the proof can't be found there, the company sends a letter on its original letterhead that says the person is authorized to sign, and a different officer of the business signs that letter (FLHSMV TL-01).

Even where your state doesn't publish a rule like this, the same habits help:

1. Sign with the business's exact name as printed on the title.
2. Have the signer add their role next to their signature.
3. Keep something on hand that shows the signer can act for the company, such as an officers list or a board or member approval.

When the business has closed

A company that has dissolved doesn't simply vanish, at least not in Florida. Its statute says a dissolved corporation keeps its corporate existence but "may not carry on any business except that appropriate to wind up and liquidate its business and affairs" (Fla. Stat. 607.1405). An LLC works the same way: after dissolution it continues only to wind up its activities and affairs (Fla. Stat. 605.0709).

Florida's LLC law also covers the hard cases:

• No members left. The "legal representative" of the last person who was a member may wind up the LLC's affairs, with the powers of a sole manager.
• A dispute or a mess. A circuit court can order the winding up supervised and appoint one or more people to handle it.
• The end point. Once winding up is finished, the LLC may file a statement of termination with the state.

That order matters if the company still owns a car. The statement of termination comes only after winding up is complete.

Be clear on what isn't settled. We haven't confirmed, for any state, whether a DMV will accept a former officer's or member's signature on a dissolved company's title without a court order or a business-records check, what proof of a closed business it wants, or whether it asks for a letter of authority. Call the title office in the state where the car is titled, say the company is dissolved, and ask what they want to see.

Junking a business car: what two states require

When the car is headed for scrap rather than the road, some states add a title step.

Florida. Cars are titled and registered, so junking one means having the title canceled. If the title is on hand, the owner signs it where the title says Transfer of Title by Seller and hands it to the salvage dealer. If it's missing, the owner completes form HSMV 82101 and gets a duplicate title before the junk process continues (FLHSMV). For a company car, the owner signing is the business, through its authorized officer.

Massachusetts. To junk or scrap a car you surrender its Certificate of Title or other ownership papers along with a completed Junking or Scrapping a Motor Vehicle Form. After that the car can't be re-titled or registered to drive (Mass. RMV).

If the company's title is lost, see selling a junk car with no title.

Signer rules for a company car, state by state

These are the general seller rules each state publishes. None of them is written only for businesses, but every one applies to whoever signs the title for the company. Only California and Florida, above, publish business-specific signer rules in what we checked.

Two patterns stand out for a company seller. In the states that call for a notary or an oath, which in this table means Kentucky, Louisiana, Ohio, Oklahoma, Pennsylvania, Wyoming and North Carolina, the officer signing for the business has to sign in front of a notary or other official. And in the states that demand an exact match, such as Alabama, Colorado, Nevada and Tennessee, a shortened company name on the signature line can stall the transfer.

Repair it for the business, or sell it as it is

A broken work vehicle is a cost every day it sits. If it's still needed and the fix is modest, repairing can make sense. If the company has stopped using it, or is closing, a repair mostly spends money the business is trying to wrap up.

A few signs it's time to sell:

• The repair estimate is close to, or more than, what the car is worth. See when repairs cost more than the car.
• Nobody at the company will drive it again.
• The business is winding up and every asset has to be dealt with.

Selling a company-owned car to us

We buy whole non-running and junk cars, including ones titled to a business. You can sell the whole car as it sits, and we offer free pickup anywhere in the US. When you ask for an offer, have these ready:

• the exact business name as it appears on the title
• the name and role of the person who will sign for the company
• proof that person can sign, if your state asks for it
• whether the company is still active or has dissolved
• details on the vehicle: model year, maker, model, miles, and the fault

If there are several company vehicles to clear out, selling several cars covers that.

Questions about your situation? Call (877) 421-6008.

After pickup, two loose ends remain for the company: its plates and any sale notice its state wants filed. After you sell lists each state's rule.