just an update

Good luck!

 

I have been involved in several business endeavors over the years, two of which were trucks. I have never found an advantage to trying to borrow money as a corporation. IMHO, unless you have lots of money and assets, a corporation is a waste of time, money and effort. An LLC is much simpler and provides the same (very little) isolation from liabilities. You can elect to have it treated as a corporation, partnership or sole-proprietorship for tax purposes.

While trying to borrow money as a corporation, you will find that it complicates and limits your options. You will have to personally guarantee any loans anyway. I think too many people feel a false sense of protection comes with a corporation. In a bad liability situation, a good (or bad depending on your definition) attorney, will pierce the veil of protection anyway.

I'm not criticizing your choices, just thinking you have put alot of effort into something that has limited your choices with very little in advantages. The only way a corporation can borrow money on it's own is if it has assets and established earnings.

I'm thinking of purchasing another truck. My plan would be to form an LLC, either as a sole-proprietor or a partnership with my wife. I would seek funding based on our personal income and assets. If by some chance it were to become very successful and I expanded, I would form a corporation at a later date when I had the company earnings and asets to become self-sufficient.

I'm just throwing out suggestions that might help. IMHO, as long as your fiancee is not part of the corporation then this will be a problem. Without the corporation you can probably overcome this hurdle.

 

+1 for what John said.
@BigJohn - If you do LLC make sure that your wife is majority owner. Pulled a load for National Guard last month and if I was a minority or woman owned I would have gotten a 22% bump on the rate.

 

Bill, I wasn't sure which way to go as I'm a veteran. I know wise choices will get you preferences on many jobs and contracts.

In addition, in Missouri and many other states dividing income between spouses saves on taxes.

 

I have not seen anything that helps for Veterans other than financing, training and pay at some carriers.

I need to check with someone on the tax issue. Didn't know that made a difference in some states.

 

The way it works in Missouri, you split the income between husband and wife. The first $9,000 is taxed on an incremental table at a lower rate. Above that amount it goes to a flat 6%. It only helps if she does not have another source of income. This doesn't help me right now, I just thought it was worth sharing. It's not a large savings, but I look for little savings everywhere not big savings in one spot.

Thanks for that tip Bill. I have no problem making her a 51% owner. She has put up with my sorry ### for 25 years, she's earned more than that.

I hope Crazy D finds a way to make this work for him. While I haven't started the loan application process yet, I am being told by a couple of places I have looked that financing is not too hard to get. It seems down payment will vary based on how secure they feel with your situation. I had thought I might have to lease from somewhere like Lone Mountain. I don't think I will though.