From Sole proprietor to LLC??

I'm curious as to why you want to go in the LLC direction as opposed to forming an S Corp.
as far as I can determine the IRS doesn't recognize an LLC, they just class them like a sole proprietorship, but you'd be best to check with the IRS. I looked into both entities and decided to go the S corp route, but I'm sure you're going to get many differing opinions on this topic.
Good luck.

 

I ended up doing LLC filing as an S Corp.

Saves the more formal paperwork required of a pure S Corp.

 

The short answer is: no. Because right now everything is under your name and under your SSN. You need to re-do all the paperwork.

However, if you don't want to redo all of the paperwork, you can at least limit it to the following: register and title all your trucks and trailers (the primary liability of a trucking business) to your new LLC (whether it is taxed as an S-Corp or a K-1 partnership or 1040 Sole Proprietorship is irrelevant). Once you do that, you can easily add your LLC as an Additional Insured in the insurance policy. So your DOT/MC authority, as well as IRP, IFTA, etc., would still be done under your personal name and SSN, but your trucks and trailers would be under your company.

Additionally, try to move your personal house(s) and personal car(s), if possible (i.e., if paid-off) to an LLC as well. That would give you an additional layer of protection. You can do it in some cases with houses that have a mortgage, too, but it's more complicated and risky (don't believe those who say it's a piece of cake and there is "no risk").

Finally, it is not enough to setup an LLC. You also need to have a good operating agreement for that LLC, keep minutes, and do a few other formalities for it to be truly recognized as a separate entity. Otherwise, most litigators would be able to piece that corporate veil that you (and many others) think is protecting you. Probably 90% of o/o's here have the false sense of security, thinking that their LLC would protect them from liability, even if they don't really know how to properly set it up and maintain it.

 

ok where would be a good place to look for someone that knows all this stuff that one could hire to have it done right I have always been the hands on man and not much of a business man

 

First place to start is the term piercing the corporate veil. There are many things on this and google will find them.

The problem that most business ventures end up in is the ownership of the assets and the funding. They tend to under fund the business and then use the money without proper documentation.

LLC can be formed and ran under the different types of business formations. However, you need to have a good background on the operation of the business activities.

 

Which states are you in? If you want to do it on the cheap - that would be doing it yourself, visiting online and calling the Secretary of State website, and using Google a lot. Otherwise, there are good incorporators, who for around $300 can setup the LLC, custom operating agreement, few template minutes and other essential corporate documents, get EIN, and even serve as your registered agents for additional privacy.

 

I live in Indiana I should have someone do it as I tend to miss things somewhere along the line no matter how much research I do and being sure its right and not spend my few hrs I have not running or working on the truck reading a 1000 bad advice/steps to find the few that are truly correct is worth the extra cost IMHO.

I the term I am looking for to get right in incorporators thanks I will search for them in my area see what I find just knowing what to look for 80% of the research so many fields so close together/overlapping its amazing.

 

Run as SP. IN December change it. Start Jan 1. 2015 as LLC. send all customers a letter stating the name change and your intent to build on the base you created and as the same person with a new look/future. This is how we did our landscape company.