Commercial Classification
In the United States a vehicle is designated “commercial” when it is titled or registered to a company. This is a broad definition, as commercial vehicles may be fleet vehicles, company cars, or other vehicles used for business. Vehicles that are designed to carry more than 15 passengers are considered a commercial vehicle.
A vehicle may be considered a commercial vehicle if:
- the title was placed in the name of a company or corporation.
- The vehicle is used for business but is in an individual's name such as a sole proprietor.
- the vehicle is a leased vehicle and in the name of the financial institution that owns it.
- the vehicle exceeds a certain weight or class and therefore is "classified" as commercial even though it may not be commercially used or commercially owned. A weight rating of 26,001 pounds or more is always consider commercial.
- the vehicle is used to haul any hazardous material.
A vehicle can be used for a business, if not exclusively, and remain privately licensed, depending on the amount of time used for business.
Read more about this topic: Commercial Vehicle
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