Should I Incorp in NV/DE? or HOME STATE? or Business State?
 

Few days back at a truck stop on CNBC(news) I saw a program about benefits of Incorporating your business to safeguard your personal assets from lawsuits and etc., etc,. They way the reporter highlighted the benefits of forming a LLC Company was overwhelming. She talked about opening up a company in DELAWARE or NEVADA for TAX BENEFITS. But when I searched online I read few articles that even if you have a Company Name based out of DE/NV you still might have to file taxes in your own state. Now I'm all confused...... :shock: The reason, I'm from WY State(WY CDL-A LICENSE) but live in CALIFORNIA(coz of freight frequency) and my trucks plates are also based out of CALIFORNIA. I've no intentions of giving up my WY license for CA but does any fellow trucker/s over here know should I form a LLC in NV/DE or WY or I can only form it in CA since thats where I'm physically available and so is my truck. Even though I'm a single truck owner operator one thing I know lawsuits are a MESS and tax benefits are PLUS. I happen to find a website that helps register in DE/NV and they provide year around AGENT to care of the paperworks(if any since I can't move to NE/DE just for tax benefits).

Any suggestions? Is worth to take a chance to file taxes twice or no matter what if its formed in the state where you want thats the only one who can take you your taxes?

From what I hear, this is illegal and is a common scam that companies try to pull off.

Kevin Rutherford from ATBS was talking about this(channel 171 on XM). I don't remember the exact details, but I'm pretty sure you have to incorporate in your home state.

He also said it's not really worth it unless your NET income is greater then 60k.

There are some major corporations which in corporate in those states. They tend to be more tax friendly than some other states. I believe Nevada also protects your personal identity. As long as you have an authorized agent in a state, I see no legal reason why you cannot incorporate in that state. You must have someone who can accept legal service should you get sued. You must also have a physical address in some states for the same reason. An agent could fulfill those obligations. I prefer incorporating in my home state. Most states have an annual report and other taxes which must be paid annually. I prefer operating within a corporate structure. There are tax benefits in having a corporation in addition to the legal protections. If someone wants to file suit against you there is nothing which will stop them. Getting a judgment against you personally is another matter. Since everyone's situation is different, I suggest you consult with an attorney who specialized in corporate law. They will be more familiar with your personal situation and those laws governing your business in your home state.

If you are driving the truck, incorporating will NOT protect your personal assets in the event of a lawsuit due to an accident. If someone sued your business, they would also likely sue you as the driver.

This information I was also told at the OOIDA seminar.. Incorparating helps only if your not driving the truck.. IF u are driving and u only have one truck there no protection and your paying more money in filing fees to incorporate..You should talk to a lawyer and see what you think is good for your operation..

Good luck!

One reason I prefer operating within a corporate structure is the tax benefits. Although you can have some asset protection, the tax benefits are a good reason to have a corporate structure. It is also easier to keep business and personal separate.

Please enlighten us as to what the tax benefits would be for a one truck owner/operator

per diem would be one.

Elaborate, please

You set up per diem as president of said corporation to pay yourself X amount per day(I think max is $52 in the US).

You cut yourself a cheque every 2 weeks for $52 X amount of days on road.

That cheque is tax free, as long as you have backing documentation.