Starting back up in the trucking industry and I had an S Corp in the early 90s' but in the late 90s' got out for a job at Chrysler. So the corperation has laid idle since. And I have moved to a different state. Starting back up I want to be incorperated but not sure which way to go. Or is it really important other than from a tax standpoint.
Incorperating LLC or S Corp.?
Discussion in 'Ask An Owner Operator' started by showoff, Feb 8, 2008.
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If it a small comapny with you at the helm , I would do a llc corp , its alot cheaper, from what was explained to me , as i am getting my things together to do trucking under myself also
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depends what you plan to do. If you are just going to be a one horse operation there isn't much difference. And from what my lawyer tells me there really is no protection with this sortof operation either. If someone wants to sue the company they will sue the board too.
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I did an LLC but am not sure if I should've just left it alone.
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A true llc/s corp will divide personal from corporate assets. surprizingly most people don't have any assets... so in that respect medicineman is correct....
but
if you have nice house, mostly paid for (300k house you owe 400k on is not an asset).
I mean real property... 40 acre farm free and clear, 300k house with a 100k left on the mortgage, and you have 50k cash in the bank with 200k in stocks and bonds... then you are a moron if you go trucking as a sole proprietor...
you are still a moron if you have all of these assets and go trucking on an illegal log and run into a school bus full of kids.
the corp route protects legitimate businesses. If the truck goes broke and you owe 50k on it plus 10k in business expenses they can't force you to sell your house or attatch your future earnings.
If you have a wreck and cripple a doctor he can take your paid for truck and that is about it... once again assuming you haven't left yourself personally liable (70 in a 40, over weight 10k, driving 16 hours straight).
corps are real protection for real businesses, they are extra paper work for fly-by-night wanna play truckers.
If your only asset is a house you owe to much money on and the truck loan is collateralized with the house.... well ya was already screwed to the wall when ya signed... -
I'm starting a company. My wife is a legal assistant for a corperate attorney and a trial lawyer. This has been a big topic of discussion around here for a few reasons. The trial lower has cited case after case where the corperate barriers have been broken by lawyer. the short of it is this. If you mess up any lawyer worth half his weight in salt can sucessfully come after YOU as a person and your company.
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Consider that you are a company driver and have an accident whether legal or not. The attorney for the injured party will name the trucking company and the driver in the suit. You are now being held liable and don't own the company.
Now change the issues to the LLC and you as the driver. You are now going to be named in both ways. All assets are now at risk.
When a company is investigated for ownership by an attorney, they will find the owners to be one owner or two is jointly owned by a spouse. They will automatically name the stockholders as well.
No attorney is going to miss going for the max in a lawsuit.
It also does not matter on liability issues in the naming of the suit whether legal or not. They will go for higher amounts if illegal, but you will be named either way. -
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if you want to save your ssests, or yourself, spend the 3 grand in nevada and get a full INC and ge then automatically set up for your buisiness to get credit and more credit, you still have to sign papers for a loan but,, if something happends you personally ie house savings investments will not get touched ..
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Same arguement as the LLC. A good attorney will note the number and names of the shareholders. Also, as a driver you will also be named. There is NO way to shield the assets during a law suit. You are better off getting an umbrella policy to shield the assets.
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