Incorporation??

Oshawasue I am going to guess you are from Oshawa Ontario Canada meaning we don't have s-Corp and c-Corp etc. We have incorporated or sole proprietor. Maybe limited also. I don't know, this question honestly would be best answered by your accountant.

 

I would highly recommend incorporating. I agree S-corp is the way to go, and keep as little cash as you need to operate in the corp. in case some sue-happy lunatic goes after you you wont be at risk to lose everything you own. They could only get the corps assets, otherwise they could get your home, cars, bank accounts, all of it

 

That's the theory anyway.

 

I had a lengthy conversation with my accountant about this very subject two weeks ago. He advises that it is not worthwhile for a one truck operation to worry about it.

If you are going to incorporate an S-Corp is the way to go, however, if you are incorporated and YOU are driving the truck and are involved in a fatality, that S-Corp will do nothing to protect your personal assets. Now if you have a hired driver, or an owner operator leased to you and they are involved in a fatality, it CAN possibly shield your personal assets.

 

Dead on ,Oscar the kw

 

My accountant advised me to inc for tax purposes, said if I was clearing over 65 k per year it would be worth it on taxes. He was right.
As far as only having 1 truck, if you are the driver you cannot separate yourself from the liability of an accident. They will just sue the driver and the corp.
Could be they also want to have you inc so that you become liable for the workmans comp. last year since the pilot car co we were using was not inc and they didn't have workmans comp we had to pick up the tab costing us a percentage for all monies paid to them over the year. We influenced them to inc for this year or we would find a pilot car co that was. They made way too much off of us to let us go.
Also if you are incorporated the company will not be required to give you a 1099. They can but are not required too.

 

Im New to this but how do i start a thread in here?

thank you

 

Go to top and go to where it says ask an owner operator, at the top of that page it says post new thread. If you don't want it in o/o section go to where it says forums then pick which forum you want to be in. Enter it then go to post new thread.

 

Thank you

 

No problem.