Best state to start an llc?

I'm a bit confused. I have two operation centers and one authority all in different states and I pay the same amount for insurance for trucks out of each. The location of the business does not matter.

Have you actually talked to a commercial insurance broker or an agent?

Or take those internet estimates as factual?

 

I can only tell you my insurance they asked me where the truck will be kept when it's not working. Your radius goes from that point.

If you are going to attempt to do that, then you really should have a Wisconsin drivers license and pay all taxes associated with Wisconsin. You should not have any Trail whatsoever that leads you to other state. If you have a home in another state then you should put that in someone else's name, if you rent an apartment then you should put that in someone else's name, if you have a personal car you have to have that insurance in Wisconsin.

The reason I tell you this for, and I'm sure you think I'm breaking your stones, but actually I'm attempting to help you, is because if you ever have any kind of an accident or claim and they investigate you, and they find you do not live where you say that you live, your insurance company has every right to deny the claim and if you were sued, they have every right to say you don't sue us you sue him because he defrauded us.

You sound to me like a younger guy that's willing to take risks and you probably think it's no big deal. But believe me, when something happens and your insurance company says we don't represent you at all it's like you don't have any insurance coverage whatsoever, that is a pretty risky situation.

And not to mention that if they actually catch you defrauding them, it is illegal so that's another concern that you can have on top of everything else.

But who knows? You might get away with it for a day a week a month a year a lifetime...

But the reason they enforce that sort of thing is because everyone would do that because it's cheaper, and they always look for a reason to deny your claim or deny lawsuits.

Think about it.

 

@Ridgeline

I could be wrong but I think that's because you have a fleet.

I think when you are a one truck operator you are more Bound by the state that you reside in and the area that you live.

I know that when I was looking for insurance everything is based on where you live and where your home domicile is and where the truck is housed when you are not working and which state your license is in, again, for a one truck operation.

The guys in the big cities tend to pay more, and the guys in the more rural areas tend to pay less. At least that's the way I understand it.

 

I hate to be the bearer of bad tidings and I'm generally an optimistic person, but as far as this goes your insurance rate really is based off of where you live.

It is kind of crazy because you could take off in your truck and not come back for 6 months or a year and you could Criss-Cross all kinds of guys that are paying very little for insurance. But that's just the way it works and it's the way they figure their risk pool and that's how their rates are figured.

I live in the suburbs of Philadelphia. My insurance rate is a little over $10,000. I spoke to an agent that told me she just signed a guy in the city of Philadelphia and his rate was $26,000. Now I don't know his MVR or if he was pulling a reefer or what else he was doing but that literally is not even an hour
away from me. Luckily for me I'm on the right side of that. Maybe there's somebody that's an hour away from me further into the country that's paying $7,000 or less. Unfortunately it's just the way it works.

Maybe if you got prices and you live somewhere outside of the city or if you found some place else out west if you like living out there that the rates will be better for you maybe that would work better.

Or if you found a carrier that you could at lease onto your insurance rate would surely be more reasonable.

There are plenty of guys that do really well leased onto the right company, in some cases they do better than they did when they were an independent with their own authority.

Good luck buddy.

 

I would agree but when I had the one truck, my insurance agent said it didn't matter where the company was located, it was used for interstate work.

I don't get the license part you mentioned, that doesn't matter, the company being located in Wi can have employees anywhere.

 

It's an interesting question.

You're looking at this that the corporation is a separate entity that you have nothing to do with that if the corporation was set up in another state you can live in a different state and you're just an employee so what's the difference.

I think if you have a physical presence in Wisconsin, your mother-in-law for example, in theory it may be possible to do that. My opinion is that the location of the corporation has more to do with taxes that you will pay than the actual commercial trucking insurance. You can file all of your taxes and pay whatever tax rate Wisconsin has, but you are actually running a trucking business out of Nevada, physically.

Progressive will ask you where the truck is going to be parked when it's not working. That would be your home domicile. I am certain they use that as the calculation for your radius. To the best of my knowledge, they base most of your rate on home domicile and radius. At that point you would have to decide how to answer them, whether you would be truthful or dishonest. Again, to the best of my knowledge, commercial insurance fraud is providing the wrong domicile and radius. Those are the two largest things that affect your rate.

Also, they may also ask you to list the officers in the corporation. If your name is listed, and the agent realizes that you live in Nevada and you are the only driver, that would most likely not work in your favor.

Again, this is my opinion, but if you were not truthful with them about home domicile and radius, and something happened that they investigated you, forgetting about the corporation stuff for the moment, I would think you could find yourself in quite a bit of trouble. It is completely impossible to hide something like that if they investigate you.

I don't have the answer as to whether you could have a corporation in a different state and register your truck there. The states in General have Cracked down on out-of-state non residents registering vehicles and they certainly are against that, but I can't answer the legality of that as far as a corporation goes. You may have to check with a lawyer about that.

The best thing to do is call Progressive and explain to them what you want to do and see what they tell you.

But whatever you do make sure that it's legal and you're not going to have insurance problems because you are using a loophole.

The last thing that you want is to have some kind of a big claim or a big problem or a lawsuit and they take that loophole and use it against you.

There is nothing insurance companies like more than finding an authentic reason to not cover a claim or lawsuit.