2 LLCs sharing same address

That's easily solved, you can have a mailing address at a different location than the business address. I think for the purpose of a business, there really isn't a valid reason.

 

I'm OTR and may not be by any particular address for months at a time...

 

will not affect anything,,no law or reg that says one or more corp,LLC can have a business address at one location,,
Have your friend sign a contract to rent office space at your home for $1/yr..
Being a corporation will only protect your personal assets if an employee has an accident and there is no negligence or fraud on your part,
Now if your business is a corp or LLC and you have an accident as the driver or cause financial harm to some else the corp/LLC can be sued and held liable as well you you.
Corps and LLC generally protect the owners of a corp/LLC personal assets and also are done for tax advantages.
Lets say you make a $70,000 profit with your business this year,,you can pay yourself a salary of $40,000 and pay taxes and SS taxes (15.5% self employment tax) on the $40K then pay your self a $30K dividend and pay a lower tax on the dividend,
Best you seek advice from a good tax firm,,better to use a firm with several CPAs than a one person CPA and let them help you decide which is best a C-Corp,,S-Corp or LLC

 

Sorry but LLCs in this business do not protect personal assets if the owner is also the driver and manager of the company. It is a fallacy that is created to sell the idea but in reality all your assets are subject to discovery and use in a case, except retirement assets.

AND also the dividend thing is not allowed in many cases, you have to declare that as taxable income through payroll, not take a dividend where you try to lower the taxes, the IRS will penalize you for that during an audit and it can trigger an audit of your business going back a number of years.

 

You can have 50 different companies at the same address, as long as you have a different Tax ID / EIN it doesn't matte. However, it's kinda weird that he asked to use yours. A business address is a semi-permanent thing and changing it once established can take a LOT of work.

About what people are saying about the LLC thing though, I'm a company driver but was self employed and an LLC for many years, companies that do business with LLC's will try to put you through MANY loopholes to re-connect you to the business and legally bypass the LLC status. Make sure that YOU never get hired, or even the contract, ONLY the LLC name. Make SURE you are an EMPLOYEE of the LLC, make sure EVERYTHING is owned by the LLC and not you at any level. The LLC must pay you as an employee with a normal paycheck, taxes taken out OR become a 1099 of your own LLC but that really requires a lot more jumping around. It's very easy to wind up re-connected to the company and at that point you might as well be a sole-proprietor. Be careful. NEVER personally guarantee ANYTHING!

 

As long as the LLC pays you a competitive wage for the services you provide to the corporation (you MUST be an employee of the corporation), any net revenue past that can be issued as a dividend and bypass self employment tax that way, without any IRS challenge.

The LLC does give protection to your personal assets in case of a business failure, as well, if you do not personally guarantee any leases or loans. However, GOOD LUCK, finding lenders or lessors that will lend you without a personal signature.

 

Again I will repeat this ...

When you are an owner and the operator, the llc offers little protection on personal assets. The reason being is that you are both the company management and the operator, hence you are liable for your actions. As for failures, the same is true, a creditor can chase your personal assets in court if they want to collect it.

The tax issues with it also seems to be worthless. The dividend trick has been thrown out a lot of times by the irs. dividends and LLCs seem to be self defeating with a single party llc, the purpose of the llc is to pass money through the personal level rates and simple paperwork so taking money out as a dividend can be

 

And, again, you are simply wrong. The IRS has upheld it's guidelines on passing along profits (above the employee competitive wage) as dividends. As far as liability, the LLC most certainly gives you protection from judgement, if not from suit. If you are interested in growing your business and hire on drivers, for example, a corporation most definitely protects your personal assets from their actions.

Of course, if you ever want to sell your business, an LLC is a much better structure for that than a sole proprietorship.

 

What about for insurance and brokers? That I heard insurance company won't give quote if you use same address also brokers won't let you take load if you use 2 llc the same address I appreciate for any advice