What's the best State to base my trucking business?!

carwreck · Aug 14, 2010

Emulsified said: ↑

You are allowed to claim ANY state as your home residence, but you must meet the residency requirements of that state.
If you are a resident of that state, then licensing your business there is not a problem.
Some states are more friendly to itinerent residents than others, and certainly truckers are considered itinerent.
So check each state's tax situation, then residency requirements and choose accordingly. What is important is you don't give the appearance of trying to evade taxes.
I have found three states most friendly to itinerent residency: S.Dakota, Texas & Florida. These three states make it easy to be a resident and not live there.
You are allowed to use a mail forwarding company as your resident address. As a trucker, you must transfer your CDL to that state. All three make that easy. You can use that mail forwarding address to register to vote. Finally, open a bank account at a local bank, even if it's just to park a few dollars and do nothing.
When challenging your residency, the IRS as well as states look for where you have your drivers's license, where you receive your income, where you bank and where you vote. Beyond that, you should be home free. Make sure you use that address when filing taxes and be sure and file taxes in your home state (if they have income tax to file).
I chose S. Dakota for myself and was challenged almost immediately by California since I had lived there for the previous 25+ years. Upon providing this information, they dropped the challenge immediately. BTW, California is the most aggressive of all states in trying to prove you are a resident there and owe them money.
I do not own property in S. Dakota, nor have I stepped foot in the state in the last year. But every month I have my mail forwarded to me at whatever location I choose. I know others that have chosen Texas and are quite satisfied.
Do your homework.
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So tell me, how much is this worth for you? how much a year are you saving? does this total to a huge amount of money? I'm guessing no state tax, what else besides that?

carwreck · Aug 15, 2010

Cummins_444 said: ↑

You are already in a good spot for flat rates being in the Midwest. I only run the Midwest and I average around two dollars a mile for all miles per truck every week. Plus or minus of course.
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besides coils and steel what kind of other loads come out of the midwest?

Native Dancer · Aug 15, 2010

Once you decide on a state check the town and county you are thinking of moving to. A lot of towns and counties have local taxes ie: public transit taxes etc.

ConcreteCowboy · Jan 30, 2015

carwreck said: ↑

I see the Indiana ones too.. I wonder whats up with that
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They are probably trying to avoid KY. KY will eat you alive in taxes.

kemosabi49 · Jan 30, 2015

RW. said: ↑

Illinois is NOT business or trucker friendly. I'd consider Indiana, there's a saying around here, "We lose more jobs to Indiana than India."
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That's what everyone says but you see companies like Landstar, Dana/Suttles and many QC (tractors) and several other companies that plate their equipment there. Must be some reason there but why,, I don't know.

Derailed · Jan 30, 2015

If your going to incorporate, Delaware was always one of the more corporation friendly states for several reasons. If I remember correctly it cost me around $175 through an agency online that I used to incorporate there.

Toddsurfs · Feb 3, 2015

avoid north carolina , taxachusetts of the south. just had my "safety audit" . nothing like a dmv officer in your home digging through your files

Dan47 · Feb 26, 2015

Emulsified said: ↑

You are allowed to claim ANY state as your home residence, but you must meet the residency requirements of that state.
If you are a resident of that state, then licensing your business there is not a problem.
Some states are more friendly to itinerent residents than others, and certainly truckers are considered itinerent.
So check each state's tax situation, then residency requirements and choose accordingly. What is important is you don't give the appearance of trying to evade taxes.
I have found three states most friendly to itinerent residency: S.Dakota, Texas & Florida. These three states make it easy to be a resident and not live there.
You are allowed to use a mail forwarding company as your resident address. As a trucker, you must transfer your CDL to that state. All three make that easy. You can use that mail forwarding address to register to vote. Finally, open a bank account at a local bank, even if it's just to park a few dollars and do nothing.
When challenging your residency, the IRS as well as states look for where you have your drivers's license, where you receive your income, where you bank and where you vote. Beyond that, you should be home free. Make sure you use that address when filing taxes and be sure and file taxes in your home state (if they have income tax to file).
I chose S. Dakota for myself and was challenged almost immediately by California since I had lived there for the previous 25+ years. Upon providing this information, they dropped the challenge immediately. BTW, California is the most aggressive of all states in trying to prove you are a resident there and owe them money.
I do not own property in S. Dakota, nor have I stepped foot in the state in the last year. But every month I have my mail forwarded to me at whatever location I choose. I know others that have chosen Texas and are quite satisfied.
Do your homework.
Click to expand...

what you will do in case of dot audit and you using mail forwarding service?

rank · Feb 26, 2015

carwreck said: ↑

Does anyone come out and check up on your office?
Click to expand...

That's a good question. Some states do come to your place and do your new entry audit. NY is not one of those states but OK might be I don't know.

rank · Feb 26, 2015

In addition to considering a low/no income tax state, I'll throw something else into the mix. I looked into this several years ago....say late 90's and obviously the laws have changed BUT, for liability reasons there are/were things called Nevada Corporations and Delaware Corporations. As I remember it, the corp was not required to disclose the names of the corporation's shareholders. In the event of a law suit, there was no name to sue.

Do your due diligence but I would put Nevada and Delaware on my list

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