Ok so we started a new business in January and are finally turning a profit "woohoo"! We created our business name and now feel as it does not represent our business as well as it could so we are now considering changing our business name. So here is the question, is a dba as a sole proprietor ok or do you all feel an LLC is the better choice. This is a family business, parents and son and eventually daughter as well. Thanks in advance for any advice you all feel like sharing.
LLC vs Sole proprietor
Discussion in 'Experienced Truckers' Advice' started by Gunners1, Aug 6, 2019.
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There isn't much difference between an LLC and SP, I would move it beyond an LLC if you have more than one family member involved. The only reason to use an LLC is for taxes, asset protection in this business doesn't exist contrary to what others claim.
On the other hand S or C corp may be the best to take advantage of taxes and ownership.Gunners1, Snailexpress and Lepton1 Thank this. -
rank Thanks this.
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And it ain't the first time ...
Llc are not what they are sold as, you as an owner, manager and driver are liable.joseph1853, Gunners1 and mtoo Thank this. -
LLC does protect personal wealth. Doesn’t protect the business money or your tractor but say for example you have personal homes or stocks than those are protected.
Gunners1 Thanks this. -
This has been discussed so much and too many people believe the lawyers who are selling a service.
The thing that most don't get is that if you are running a truck as an owner and operator, you manage both ends of the business and assume both liabilities. You make the policies, you police the other end with those policies and make decisions that effect the safety of that truck on the road.
Your personal property can be at risk at that point as it is a sole proprietor. Any good ambulance chasing lawyer can attach assets to a settlement or a judgement with the exception of retirement accounts like 401k or IRA, those are protected.
Incorporating (S or C) does away with some risk, not all of it. But in the case of family being involved (as the OP mentioned), a either way will allow them to have flexibility with who gets what share and how the payouts work to their tax advantage.
By the way, my lawyer has said with this LLC thing, how many lawyers who sell the LLC to people are willing to defend it in court when something like a fatal accident happens? He said maybe 1 out of 10000.OldeSkool, shatteredsquare and wis bang Thank this. -
With NJ's current attempt at 'misclassification' of port drivers any sole prop and/or LLC needs to become type S to avoid NJ trying to say he is one of our employees when he owns his own truck, etc......
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Well from personal experience in a tourist related industry an LLC protected my father and saved a lot of hastle. Your personal assests are supposed to be protected thats the point of it. Sole proprietors do something stupid you can have personal assets in a lawsuit. Negligence probably opens up different doors.
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LLC is *supposed* to protect personal assets. But the court system in this country is so screwed up that the laws and rules don't matter anymore. Now the only thing that matters is that you have the better lawyer to convince the jury that you are innocent.
You could walk into a court room, kill somebody in front of a judge and jury, then go to trial in front of that same judge and jury and if your lawyer convinces them you are innocent then as far as employers, background checks, etc are concerned you did nothing wrong at all.joseph1853 Thanks this. -
There are hundreds of carriers and truckers being sued at any given time, there are lawyers who buy ad space and time to say ' a truck looked at your car the wrong way, we can sue and make you a millionaire' and to think they haven't strategized as a group not to squeeze every penny they can out of this industry is foolish - I think they actually have conferences to target this industry.
You can protect yourself the best as you can and there will be something that will trip you up thanks to a court decision or a lawyer who found something he/she can use against you.joseph1853, akfisher and wis bang Thank this.
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