Can I lease trucks to my S-corp to protect personal assets?

UPDATED: Mar 20, 2019

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Can I lease trucks to my S-corp to protect personal assets?

I have trucks in my name that are being used for business. I’m worried about liability in case of

serious accident.

Asked on March 20, 2019 under Business Law, Pennsylvania


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

If you own both the trucks and the S-corp and control both, it is unlikely that leasing them to the LLC will protect you. Because this is not an arms length transaction, someone suing due to, say, a truck accident could most likely "pierce the corporate veil" of the LLC by convincing a court that the transaction is a spurious or fraudulent one: not a real business transaction, but one intended only to defraud injured parties by depriving them of recourse. Also, that since you control and own both, you are the real party in interest no matter how you tried to structure matters.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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