What's the best State to base my trucking business?!

Discussion in 'Ask An Owner Operator' started by carwreck, Aug 12, 2010.

  1. Sonbell

    Sonbell Light Load Member

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    You will get audited if I remember about 5 months into it. We're home based and they came out and went thru all our files to make sure we knew what we were doing.
     
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  3. carwreck

    carwreck Light Load Member

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    Feb 11, 2010
    Chicago, IL
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    who audited you? IRS? DOT?
     
  4. Brickman

    Brickman Trucker Forum STAFF Staff Member

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    WY you can do the same thing as OK.


    BUT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! you have to have an office, a person answering the phone during normal biz hours and company records on file at that location where the WY DOT compliance officers if they so desire can come and peruse them. (state law, but I wonder how much its enforced)
     
  5. Brickman

    Brickman Trucker Forum STAFF Staff Member

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    us dot / fmcsa
     
  6. Krooser

    Krooser Road Train Member

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    Not anymore....you need to physically have a REAL presence in the state to avoid hassles....
     
  7. Brickman

    Brickman Trucker Forum STAFF Staff Member

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    Carwreck I would think you are in a better state for available freight than what OK will be.

    I was always able to get good enough loads into OK, but always had a hard time getting out.

    Friend of mine used to live in OH. No problem to get out of the house loads.
    Got it into his head he wanted to move to VA. I asked him about the outbound loads.
    He THOUGHT it wouldn't be too bad.

    Yeah right! Didn't take two months for the beaching to start. My reply... "I told you so".
     
  8. Emulsified

    Emulsified Road Train Member

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    Dallas, TX
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    You are allowed to claim ANY state as your home residence, but you must meet the residency requirements of that state.
    If you are a resident of that state, then licensing your business there is not a problem.
    Some states are more friendly to itinerent residents than others, and certainly truckers are considered itinerent.
    So check each state's tax situation, then residency requirements and choose accordingly. What is important is you don't give the appearance of trying to evade taxes.
    I have found three states most friendly to itinerent residency: S.Dakota, Texas & Florida. These three states make it easy to be a resident and not live there.
    You are allowed to use a mail forwarding company as your resident address. As a trucker, you must transfer your CDL to that state. All three make that easy. You can use that mail forwarding address to register to vote. Finally, open a bank account at a local bank, even if it's just to park a few dollars and do nothing.
    When challenging your residency, the IRS as well as states look for where you have your drivers's license, where you receive your income, where you bank and where you vote. Beyond that, you should be home free. Make sure you use that address when filing taxes and be sure and file taxes in your home state (if they have income tax to file).
    I chose S. Dakota for myself and was challenged almost immediately by California since I had lived there for the previous 25+ years. Upon providing this information, they dropped the challenge immediately. BTW, California is the most aggressive of all states in trying to prove you are a resident there and owe them money.
    I do not own property in S. Dakota, nor have I stepped foot in the state in the last year. But every month I have my mail forwarded to me at whatever location I choose. I know others that have chosen Texas and are quite satisfied.
    Do your homework.
     
    carwreck and Travelinman Thank this.
  9. Sonbell

    Sonbell Light Load Member

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    Jul 27, 2010
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    fmcsa/dot did the auditing.
     
  10. Cummins_444

    Cummins_444 Medium Load Member

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    You are already in a good spot for flat rates being in the Midwest. I only run the Midwest and I average around two dollars a mile for all miles per truck every week. Plus or minus of course.
     
  11. Powder Joints

    Powder Joints Subjective Prognosticator

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    Rosamond, SoCal
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    Nevada, Tell Tony to send me my cut, the guys will be by later for there cut....
     
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