Setting up an LLC in one state but live in another?

I am hoping someone can help me with this question or at least point me in the right direction.

I was required to get an LLC when I became a lease operator at Prime this year. There accounting firm, Abicus, sets everyone up for a Missouri state LLC even though I live in Washington state. I am looking into getting my own authority in the next couple of months and want to make sure I have LLC set up correctly.

My question is this, when I look at getting my own authority it asks where am I domiciled and right now my LLC is domiciled in Missouri and I live in Washington. Can I still get base plates from Washington state or do I need go to Missouri? Does it make a difference where my LLC is domiciled when it comes getting my Authority?

Also, does anyone know since the LLC is in Missouri, does that mean I need to pay taxes there or in Washington where I live?

Thanks in advance for the help!

 

Thank you for the response. For the llc I didn't need to be domiciled in Missouri, only needed an agent there and abacus charged $100 a year for that. I talked to them about this as well and if anything all I would need to do is set up a foreign entity llc in the state I live in if the local license office won't give me plates.

I got my insurance quote today from progressive and it's reasonable for me my first year with comp, collision, under insured motorists, cargo at $100k, and 1million liability. I was quoted $12,060 for the year. Still checking around with other carriers as well, but less then I thought it would be.

 

Thanks, I am looking forward to it! Because of the lease agreement I have with Prime, the only insurance I need to get is the 1million liability, cargo and trailer coverage and that quote came back at $3450 a year. Lets just say I was jumping up and down with that one. Some days I wonder WHY I decided to keep leasing from Prime, but when things like this happen I can't complain.

How long have you had your authority? Where did you start with getting loads and customers? Did you buy your first trailer, rent one or lease? If you can't tell I have a lot of questions that I am more or less looking for confirmation that I have the right answers to. It's frustrating because all my friends are either company dirvers or lease ops who have no real ambition to run a business and get there own authority. I try and suround myself with people that are where I want to be, but when it comes to trucking that's not the easiest thing to do. Most o/o don't spend a lot of time in the truck stop (neither do I for that matter) and the ones that do sit at the coffee counter telling the wild stories, well we see them here at the ttr as well. Then there is the commercialized information that Kevin Rutherfurd puts out there if I want to run a business like his. Except I am not in the mood to start my own podcast and promote products all the time .

Anyways, any suggestions on where to go for a good mentor or someone who is successful that I could talk to and ask questions. I am not looking for info on who there customers are or what lane they run, just more of the business side of things like getting a trailer, making sure I am setting myself up in the right state, stuff like that.

Thanks again for the help!

 

I would have but when I leased a truck from Prim they required us to get LLC's in order to lease so here I am with one and I don't have an issue with the taxes and all of that, plus my mom is a cpa who understands the accounting and tax stuff very well Personally I would have rather done a sub-s corp instead of an LLC, I just didn't have the time before hand to set it up, Prime didn't tell anyone in our lease group we needed an LLC until we turned in our lease agreement and they asked where it was, so we all had to rush at the last minute and of course abacus was right there willing to "help" for a price $$$ to get an LLC and EIN that day. I was so pissed at the crap Prime pulled. So instead I smacked them back when I turned there lease against them. They didn't realize the basic lease allowed us to take the tractor to another carrier, that it included all the insurance even if we go to another carrier except cargo, and that we are suppose to still have access to all of the discounts Prime offers including fuel, tires and such. And there stupid contract doesn't allow for them to cancel it unless I fall behind on my payments or start trafficing drugs and prostitutes.

 

Thank you for your response. No I'm not ACE lease, just the regular lease. I do plan on purchasing the truck at the end of the lease either by converting to an Ace with Prime or getting outside financing for the little bit I'll have to finance. I'll have a very good size down-payment saved up by then.

As for an s-corp, I've had one in the past and never had to have a payroll service. Not sure where you found that requirement, but I operated my s-corp for a few years with no issues before I sold the company.

An llc and s-corp are 2 very different entities. An llc can elect to be viewed in the eyes of the irs as an s-corp or the default sole proprietor for tax purposes but that's it. As for forming a s-corp or llc in another state for tax purposes, I'm not big enough now anyways.

I'm happy with Washington state and there no income tax right now. Since my llc is set up to be taxed as a sole proprietor, I only have federal taxes to pay. There is no limit on how much your company makes before you have to become a c-corp. There are many major privately held companies that are llc's making millions a year and aren't required to be c-corp.

Thank you again for the response.