Do You Single Truck O/Os Incorporate Or Become LLC?

[Ric]

:?: :?: :?: :?:

[GMAN]

I have a corporation. LLC serves basically the same purpose, I just like the way a corporation is set up. If you are a single trucker there may not be a need to incorporate. There can be some tax advantages to incorporating. There can also be additional annual fees to pay to your state for the privilege. Same with a LLC. If you incorporate or set up a LLC, you do have some asset protection should you have a serious accident. I think most guys out here operate as sole proprietors.

[icedad]

My advice is to talk a very knowledgeable trucking tax person. They will steer you straight and advise you as such. There are a few ways to go, but each individuals needs are different. Do not talk to your favorite tax person unless they have alot of truckers accounts.
I made the mistake of using my normal tax lady who was knowledgeable in tax laws and business accounts, but did not have a clue about truckers.
Whether you decide to go as an incorporation, LLC, or an individual. Each has it's pro's and cons. That's where a good accountant can help you.

[314wb 359]

not all states give llc the same protection as corporations. doesnt matter what your state does if you wreck or have trouble in one that is not llc friendly. corps are provided equal protection in all states.

[GMAN]

not all states give llc the same protection as corporations. doesnt matter what your state does if you wreck or have trouble in one that is not llc friendly. corps are provided equal protection in all states.

I have never heard of any state treating an LLC differently than a regular corporation. There are some limitations as to corporate structure and protections, but if it is set up properly, it should provide the same protection unless there could be some limitations in some states. It might be a good idea to consult a good corporate attorney familiar with the laws in your state. 8)

[thms542004]

What's the difference in becoming incorporated and becoming LLC?

[Mandilon]

...one is that 'some' states do not 'recognize' LLCs.

[TheWhiskeyHill]

My opinion, you should be structured as a LLC or S Corporation, but not as a sole prop. That could prove disastrous in the event of a suit. All your personal assets are at risk. Also the tax advantages of LLC and Corp. make sense to structure yourself as one of these entities. You can pay yourself a monthly draw and collect dividends. Don't forget you are in business for yourself, use the tax code to your advantage. A tax accountant should be consulted to see what would work best for you.