The only time you dont have to pay sales tax on a vehicle is if you are a licensed dealer or wholesaler and you buy the vehicle to resell it.
Be careful! As long as the car is titled to a private owner, NO you don't have to pay sales tax. But we made a huge mistake! Thought we were buying from a private individual but he put the title in his privately owned company name and now we have to pay sales tax. A fact the OWNER should have disclosed!!
go pick it up, if they refuse, go get the police
Incorporate.
Private. None of your business.
Private. None of your business.
The private seller holds the title until paid in full, he should transfer the title to private buyers name and place a lien on title then the title will be mailed back to the private seller and once vehicle is paid the seller signs off on the lien and mails the title to the buyer. A contract/bill of sale should be signed by both parties to the payment agreement established for the protection of both parties.
You do not pay the sales tax to the person you bought the car from. You will pay the tax when you register the car in your name. The motor vehicle dept. will ask you how much you bought the car for and that is what they base the tax on. If what you paid is less than book value they will have you fill out a form stating how much you paid. This form has to be signed by the seller, so if you are getting a really great deal get a blank form at MVD and take it with you when you buy the car.
There are many variables as to what licensing you'll need. Here are some possible types. Business license - yearly tax registration, usually required everywhere Fictitious Name Registration - required if you don't have your legal name in the name of your business Seller's permit - required for wholesale and retail sales Federal tax ID - alternate IRS ID rather than using SSN State tax ID - employer identification #
a seller
A private car is normally one owned by an individual or family. Business or commercial are owned or leased by companies for business purposes and are retained under the company name
a seller