New O/O With Banking Question

I would set up a new business account. Check out Dave Ramsey he has great tips on this.

 

Start an llc (it's easy and cheap to do) when he signs on with xpo. Make the contract between them and the llc not your husband. Open a business checking account, and have the settlement deposits made to it. You no how much it takes to run your household. Pay yourself a weekly (set amount )salary EVERY week. Leave the rest alone dont be tempted to go buy new car vacation etc. Pretend he is a company driver, and his salary check is all the money you have. Do that and 2-3 years from now, you can take me and wife on vacation as a thank you. Wish someone had of told or made me do that 20 years ago.

 

Pacer Cartage, after they were acquired by XPO, but before they were merged into XPO, required all contractors to be business entities, whether LLC or Corporation.

While strictly not necessary, because if the owner is the driver, they will not protect you in the case of an accident, it is professional to have a company and separate bank account for the trucking business.

 

For me the business account was a necessity because the settlements were not written to my name but my Corporation. Either way, with truck ownership and all the cash flow, automatic payments, direct deposits etc.having a business account is the only proper way. Liability-wise it is also better to have personal funds separated.

 

Why do people wait until they get the truck to ask these questions?

 

I could be wrong but without a business license. You really don't have a business. All you've established so far is a business name and taxpayer number.

And you might not get a business checking account opened without a business license. I couldn't anyways but i have a credit union.

And if your state is anything like mine. Be prepared for state letters wanting employee taxes and business taxes and all that crap. I was getting billed $1,000 per quarter for employee taxes. I don't have any employees.

 

It depends on the state. I don't have to have one, but other states require more than just an LLC.