buying my truck and running under my own authority

Well since i dont know how to correctly answer this question I thought I would refer you to a place that can and give you solid,credible advice. www.ooida.com its worthwhile joining.

 

Dont really see the benefit, Your insurance is the key, Policy limits are all the lawyers are really after anyway. To hard to collect personal judgements. I domt think i would go thru the agravation for a one truck company.

 

Besides the truck trailer and all other insurance, I carry a 1 million personal umbrella policy. It is cheep and makes me feel safer.

 

I imagine your CPA will also do all this work for you? As a solo O/O, you are not going to get any real asset protection from an LLC or a Corporation. Insurance is your protection. For less than the annual fees and the extra you will have to pay for the nightmare of extra filings under an LLC you could purchase general liability insurance.

But was wondering, why did he advise an LLC vs. a C-Corp?

 

The personal umbrella doesn't provide coverage for operating a commercial vehicle for profit - I can guarantee you it would be in the exclusions section. Another $1,000,000 in coverage added to your existing $1,000,000 Auto Liability would probably run you another $800 - $1,000 meaning you would have $2,000,000 in coverage. Would recommend General Liability coverage as well just like BBB said above. For the $350 it cost you will come across a few brokers / shippers over the course of the year that require it plus the extra protection it provides.

When I started up my lawyer and accountant recommended an LLC as the best way to go for small outfits. C-corp is marginally beneficial if you have multiple owners. LLC - as the name implies limits your liability to the assets of the company.

 

Thanks Marlin Transport, you just saved me money. If only I had been smart enough to read the policy or get any imput from my agent. Thanks again.

 

A personal umbrella isnt a bad thing to have for excess liability on your personal auto, house, etc...especially for the $150-$200 cost of it. I was just saying it doesn't apply to a commercial business or a for profit trucking company.

Typically on Auto Liability for Trucks an additional $1,000,000 in coverage can be purchased for around $800 - $1,000 per unit. Every once in a blue moon I have seen a shipper want $2,000,000 in coverage.

 

spoke to OOIDA about this some months ago

they said, basically, for a one-truck operation, corporation, LLC, sole proprietor, anything doesnt really matter, because if you are the driver and you have the accident and you are a one-truck operation, there are no "legal" protections against getting sued

my accountant said that IRS doesnt look too kindly to these types of setups because they are typically set up to avoid taxes

i am not a lawyer or an accountant, but i play one on the internet

 

im telling you i went with a c-corp and wish i never did my cpa is making any money im saving by doing this,now im paying unemployment taxes and workmans comp on myself my trucks are in the DBA name so now i have them leased to the corp and doing a 1099 on myself but i was told i can no longer do this

in my first 8 years of just running a DBA i never paid more than $1,000 a year this year already i have paid over $12,k and still have last quarter left you think im going to get that back.............hell no im not, i sould of went with a LLC