Unincorporated Truckers Beware...

Discussion in 'Trucker Taxes and Truck Financing' started by Rusty50484, Sep 28, 2010.

  1. Rusty50484

    Rusty50484 Light Load Member

    127
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    Dec 25, 2009
    Northern Iowa
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    Opinion: Unincorporated Truckers Beware




    By Kristie Roger
    Associate
    LarkinGibbs LLP




    Many of those involved in trucking — particularly the over-the-road interstate variety — appear to believe an unincorporated trucking firm escapes multistate taxation.


    They are wrong.


    Trucking firms operating as proprietorships, partnerships, limited liability partnerships (LLPs) and limited liability companies (LLCs) are subject to taxation under requirements similar to those imposed on corporations.


    However, a state cannot impose an income tax on any business entity, regardless of form, unless that company has a sufficient nexus — i.e., a connection — with the state.


    A state’s nexus standard applies to all entities, without regard to legal form, and every state has its own nexus standard.




    Full article at embedded link above.

     
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  3. Roadmedic

    Roadmedic Road Train Member

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    Apr 4, 2007
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    Nothing to worry about here.
     
  4. jerry_c

    jerry_c Light Load Member

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    24
    Feb 6, 2010
    Cookeville TN
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    I agree with Roadmedic. The Amtrak Act will apply to most unincorporated entities, and the only state tax will be in the states of the drivers' residences. I could see a few small fleets that aren't incorporated where this might be an issue, though. Most fleets of any size are incorporated or LLC's, though. It's foolish not to be.

    For the unincorporated OO driving his own truck, this is not an issue at all.
     
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