How to Register a Vehicle in Your Business Name in Massachusetts (Personal to Commercial)

Overview

If you use a vehicle for business purposes, you may eventually need to register it in your business name instead of your personal name. In Massachusetts, this process involves the Registry of Motor Vehicles (RMV), the Department of Revenue (DOR), and your insurance agent — and misunderstandings around commercial plates, fees, and sales tax are common.

This guide explains:

• How to register a vehicle in a business name
• How to change from a personal to a commercial registration
• When commercial plates are required
• When sales tax may or may not be due
• How Risman Insurance Agencies can help streamline the process

When Should a Vehicle Be Registered to a Business?

You may need to register a vehicle in your business name if:

• The vehicle is owned by an LLC, corporation, or partnership
• The vehicle is used primarily for business purposes
• The vehicle transports tools, equipment, materials, or goods
• The vehicle has a registered gross weight that places it in a commercial classification

Registering a vehicle in a business name often goes hand-in-hand with commercial auto insurance, but registration and insurance are separate steps that must align.

Step 1: Confirm the Business Entity and Ownership

Before making any changes, confirm:

• The legal structure of the business (sole proprietor, LLC, corporation, partnership)
• The exact legal name of the entity
• Whether the vehicle ownership (title) will change, or only the plate type

These details must match across insurance, RMV, and tax documents.

Step 2: Set Up or Update Commercial Auto Insurance

Massachusetts requires active insurance before registration.

Your insurance agent will:

• Confirm whether commercial auto insurance is required
• Ensure vehicle use, drivers, and radius are properly classified
• Complete and stamp the Registration and Title Application (RTA) form

This is also a good time to review related business coverages that may apply. How Much Auto Insurance Do You Need in Massachusetts?

Step 3: Gather Required RMV and Tax Documents

To register a vehicle in a business name, you’ll typically need:

• Registration and Title Application (RTA) (stamped by your insurance company)
• Proof of business entity (Articles of Organization, Certificate of Good Standing, etc.)
• Federal Tax ID (EIN), if applicable
• Title or bill of sale showing correct ownership
• Payment for applicable RMV fees

Sales and Use Tax Considerations (MVU-25)

If vehicle ownership is changing (for example, from you personally to an LLC), Massachusetts presumes sales or use tax is due unless a specific exemption applies.

Certain business-related transfers may qualify for exemption and are documented using Form MVU-25, which applies only in limited situations such as:

• Formation of an LLC, partnership, or corporation solely in exchange for an ownership interest
• Certain business reorganizations
• Dissolution or liquidation of a business entity

Eligibility depends on the facts of the transaction. This should be confirmed with a tax professional before RMV submission.

Step 4: Complete the Registration with the RMV (Plates & Fees)

When Commercial Plates Are Required (Massachusetts Law)

Under Massachusetts law, commercial plates are required when a vehicle meets the definition of a “Commercial Plates Required Vehicle” under 540 CMR 2.05.

Specifically, 540 CMR 2.05(4)(c) states:

“A Commercial Plates Required Vehicle shall display a COMMERCIAL registration number plate.”

A vehicle is classified as a Commercial Plates Required Vehicle when it is used in connection with business operations, including but not limited to:

• Transporting or storing tools, supplies, materials, or equipment to or from a job site
• Transporting or storing goods, wares, or merchandise in the ordinary course of business
• Being used for hire, including snow plowing or delivery
• Displaying business advertisements or markings on the vehicle

In addition, commercially registered vehicles must declare a registered gross weight, which reflects the vehicle’s intended loaded weight and is used to calculate registration fees.

The RMV has authority under M.G.L. c. 90 and 540 CMR 2.05 to determine the proper classification and enforce compliance.

Commercial Registration Fees

Commercial registration fees in Massachusetts:

• Are weight-based, not flat-rate
• Are calculated per 1,000 pounds of registered gross weight
• May renew annually or biennially, depending on plate type

Fees vary by vehicle and should be confirmed before registration.

How Registration Can Be Completed

Registration can be completed by:

• Visiting an RMV Service Center, or
• Using an RMV-approved runner service, if available

Registry Services Through Risman Insurance Agencies

Some Risman Insurance Agencies offices offer registry services, which may include:

• Plates issued directly in-office, and/or
• Use of a runner service to process RMV paperwork

Availability depends on office location, timing, and transaction type. Registry services:

• Are available to Risman clients only
• May involve an additional service fee, separate from RMV fees

Contact your Risman office in advance to confirm availability.

Common Mistakes to Avoid

• Assuming a name change alone avoids sales tax
• Using outdated RMV forms
• Not updating the title when ownership changes
• Registering with incorrect vehicle weight
• Assuming personal auto insurance applies to business use

Frequently Asked Questions (Q&A)

Do I have to pay sales tax when changing from a personal to a commercial registration?

Not necessarily. Sales tax is triggered by a change in ownership, not by plate type. If ownership does not change, sales tax is not due.

Is a vehicle transfer exempt just because I started an LLC?

No. Simply forming a business and changing the vehicle name does not automatically qualify for a tax exemption.

When is a transfer potentially exempt from sales tax?

A transfer may be exempt if it occurs as part of forming a business entity and the vehicle is transferred solely in exchange for an ownership interest, as documented using Form MVU-25.

What if I move the vehicle into the business later?

If the transfer happens after formation or involves payment or other consideration, sales tax is typically due.

Am I required to display company lettering if I have commercial plates?

No. Massachusetts does not require company lettering, logos, or business identification on vehicles with commercial registration. Commercial plates alone do not create a lettering requirement.

If my vehicle has company lettering or logos, do I need commercial plates?

Yes — in most cases. Under 540 CMR 2.05, a vehicle displaying business advertisements or business markings is considered a Commercial Plates Required Vehicle, unless a narrow exception applies. In practice, business lettering is one of the most common triggers for requiring commercial plates.

Who decides whether commercial plates are required?

The RMV makes the final determination based on the vehicle’s ownership, use, markings, and registered gross weight.

Can Risman Insurance Agencies help with registration?

Yes. Some offices offer registry services or runner services for clients, subject to availability and additional fees.

How Risman Insurance Agencies Can Help

We help Massachusetts businesses:

• Determine whether commercial registration is required
• Set up appropriate commercial auto insurance
• Coordinate RTA, MVU-25, and RMV paperwork
• Avoid delays, tax surprises, and coverage gaps

Our team can also review how your vehicle fits into your broader business insurance program, including liability and workers’ compensation considerations.

Talk With Us Before You Go to the RMV

If you’re considering registering a vehicle in your business name or changing from personal to commercial registration, speak with your insurance agent first.

📞 Call Risman Insurance Agencies or 📩 contact us online to review your situation.

Insurance coverage cannot be added, deleted or changed until confirmed in writing from our office.