Base of operations setup in a different state then your state of residency?

Discussion in 'Ask An Owner Operator' started by turboguy, Mar 31, 2020.

  1. turboguy

    turboguy Light Load Member

    May 16, 2015
    hey guys

    Im probably not explaining this the best way
    Is anyone a resident of a different state from the state your LLC/ S-corp and truck/ trailer are registered in?

    from what I can tell it would not be any different then leasing on to landstar and running with their license plates from a different state than your state of residency

    has anyone had any issues with doing that?
  2. baha

    baha Road Train Member

    Jul 25, 2013
    It may be wise to ck what the diff. is on state income tax between the two states?
    Sirscrapntruckalot Thanks this.
  3. Dino soar

    Dino soar Road Train Member

    Dec 8, 2017
    The way that I understand it it's really better to just have everything in the state that you reside.

    If you are doing it to avoid taxes, you may end up paying more taxes because you have to pay tax in each state. There also are fees associated with having a foreign corporation.

    As far as truck insurance, I'm almost positive they go by where the truck resides and what your actual address is.

    There was a post on here a while back where someone rented a yard and office 3 hours away from their home, apparently because they would get a better rate on insurance, and then after a few months the insurance company jacked the rates up, going by the address on their driver's license.

    You have to be completely transparent with the insurance company because if they find anything is incorrect, or there's anything that's not exactly as it's supposed to be with the information that you gave them they could deny any claim.
  4. theSoz

    theSoz Light Load Member

    Jan 24, 2020
    I'm assuming you're doing this for tax reason. It's actually done all the time, it's completely legal, and there's entire industries built around this very thing.

    Montana for example is a popular option for luxury RV's and Big Trucks because they have zero sales tax and their registration for trucks in particular is dirt cheap. THIS WEBSITE is a popular well known, reliable option. Obviously, the URL is marketing but they work with many of the multi million dollar Luxury RV builders, think Marathon, Newell, etc, all the time and come highly recommended.

    Read over the website, it will answer all your questions and walk you through the process. It will even give your the do and don't of the entire thing to stay legal.

    I'm not associated in anyway with the above named site, I'm just familiar with the subject matter and offered up and option.
  5. "semi" retired

    "semi" retired Road Train Member

    Apr 16, 2014
    high plains colorado
    I always wondered why Pumpkin, based out of Green Bay, all had Illinois plates,,,
    theSoz Thanks this.
  6. mnmover

    mnmover Heavy Load Member

    Apr 5, 2009
    Lichfield MN
    Illinois has been a popular stat to license a truck as there is no sales tax on purchasing a truck.
    "semi" retired Thanks this.
  7. mud23609

    mud23609 Medium Load Member

    Mar 9, 2015
    Depending on your situation South Dakota may be an option for both residency and your business. It’s crazy easy to set up a domicile there, no state income tax, and I believe no state corporate tax. Some of the mail forwarding outfits like Dakota post will even act as an agent for your business for a small fee. Might be worth checking out.
    tommymonza and theSoz Thank this.
  8. turboguy

    turboguy Light Load Member

    May 16, 2015
    maybe I should rephrase the scenario

    If I want to sign up with an Owner Operator carrier
    I have a truck titled in "State A" but my license is in "State B"

    Will that carrier deny my application to work with them?

    has anyone had any other issues on the regulation side of things?
  9. Studebaker Hawk

    Studebaker Hawk Road Train Member

    Oct 18, 2010
    NW Indiana
    I have been leased to Indiana based carriers for 40+ years. 5 different tractors, some titled in Indiana, some in other states, all base plated in Indiana, plate purchased through the carrier. My domicile(the proper legal term) was never in Indiana until very recently. Never an issue for any of the carriers.
    In our 200 truck fleet I would say less than 10% of our drivers are domiciled in Indiana.
    turboguy and theSoz Thank this.
  10. theSoz

    theSoz Light Load Member

    Jan 24, 2020
    Naah you're good, it happens all the time. I think it would be rare to find someone with everything in one state.
    turboguy Thanks this.
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