Registration Question

First, you are making things more complicated than they need to be. Forming a LLC will provide a little protection from litigation, but not much as you are also personally liable for anything you do as the driver for the LLC. Second, a single member LLC is treated exactly the same as being a sole proprietor for tax and asset ownership purposes, there is no distinction. Meaning, buying the truck in your personal name and leasing it to the company to "make some income" is exactly the same tax wise as just taking a draw from the retained earnings of the company, it will be taxed the same way. Actually, if the draw is done right it may be taxed as capital gains instead of ordinary income, which means it may be a better tax rate than the ordinary income you would pay for the lease payment coming to your personal name.

As for the IRP, the base plate will be in the name of the carrier regardless of what name is on the title, so this would be your LLC name. Question 5, no your truck is not currently leased to a carrier, unless you are already running this truck leased to someone else. This is just so they can look at you previous IRP filings, so if this is your first truck then question 5 is no. As for the TIN and US DOT, that would be the numbers that are assigned to your LLC, the apportioned registration will match the company name even though your personal name is on the title, just the same as if you went and leased your truck onto Schneider or any one of the megas, their base plate with your title. Hope this helps.

 

The IRP account is in the name that is on the authority. If you personally own the equipment and lease it to your LLC, you will likely have your name along with the corporation on your cab card. You apply for the DOT number when you apply for authority. There is no charge for the DOT number. I believe you mean EIN instead of TIN. That is the employer identification number that is issued by the IRS. You may be able to apply for the EIN online, but can go to your local IRS office. If you incorporate the EIN will be assigned to the corporation. If you wish to operate under an LLC, you should do that prior to applying for authority. The IRS used to give your the EIN at their local office while you wait. I don't know if that has changed or not. If you go to your local IRS office they could tell you how it is currently done.

You may have limited protection under the LLC. But, there can be tax advantages to incorporating. It also helps to keep your business separate from personal business. You need to open a business account in the name of the corporation. It would also be a good idea for you to find a good accountant. It is important to keep your books up to date. I have a couple of friends who run their own authority and just send everything to a service that specializes in trucking. I use software specifically designed for the trucking industry called Trucknpro Biz Manager. There are a couple of others on the market. Some use standard accounting software and others use a spreadsheet. Whatever you do, it is best to set things up in the beginning.

 

I can't really say as far as whether or not you should lease to your llc, maybe tax purposes? However your insurance has to be in whatever name your operating authority is in. The IRB let me keep my truck registered under my own personal name because I incorporated after I registered it and had to cancel and open a new insurance policy however they did advise me I should start a new registration plan next time I renewed under new company name.

 

Your equipment can be in your personal name or the corporation. Everything else will be in the name of the LLC or corporation. You will also need an IFTA account. That will also be in the name of the LLC.