operating authority

Same as other companies you worked for . You said you have the qualification file . Inquiring with past employers , getting a copy of the MVR , etc. is simple enough but I never made sense out of giving yourself a road test . Check with the CPA on W-4's and tax withholding .

 

You do not want an S corp. You want an LLC. Why do you want to pay quarterlies when you will have no profit?

Mike

 

And why do you feel a need to pay taxes? Do you even know what you are getting into? Do you have an accountant? Not a bookkeeper, but an accountant? If you need one, pm me, my gals firm is nation wide, and only charges when you use them. And my gal used to run the books for one of the bigger carriers in my area. She knows trucking.

Mike

 

S corporation profit and loss flows through to shareholder as well. Except in your state. I had to get out and check. S corps are subject to Michigan Single Business Tax. Some of the LLC's are as well and create the liability on the personal level in some situations.
There are other reasons not to have an S-corp. It depends on what their real intentions are.

 

There are problems with benefits under an S corp. For instance, if you want a salary and then decide to have health insurance, it is not allowed. It can be added to salary but not as a benefit.

S corps require corporate minute books, charters and annual reports. LLC's are simpler to put together with less restrictions.

But the question comes to mind as to why you are setting one up in the first place.

My choice would be a LLC.

 

Then explain why he would want the headache of a corp.? Get an LLC and be done with it. He screws up and kills someone or gets sued, a corp will serve him little. A good attorney will hand his asrse to a plantiff all day long and then some. This is trucking, and it sounds like he only has one. Why go through all of the headaches? An LLC is a no brainer.

And I know all well and good about Michigan and the now defunct SBT. Trust me, will keep my LLC and disregard the corp headaches along with the quarterleys and an accountant on retainer. Like to pay as I go as I lose my arse out here.

Just my .02

Mike

 

But isn't it true most other states will not recognize an LLC from outside their state and require him to file as a foreign LLC to do business in their state ?
http://www.allbusiness.com/business-planning/business-structures-limited-liability/866540-1.html