Best state to start an llc?

You're overthinking this.

If you have a place to do this in WI, then form a full WI corp, don't bother with an LLC.

You can hire anyone you want, the limitation with hiring yourself is just you can't take 100% of your income through dividends - the IRS frowns on that.

The truck can be owned by anyone, you can have it leased to the company and that's solves residency issues.

You can rent a storage lot for the truck to sit, tell the insurance that's where it is when it is not being used, but no one said it has to be there all the time.

AND if you guys want to complain about insurance costs, Michigan is so screwed up, I pay for a beater ($500) van $900 a year for basic coverage. We don't have minimal coverage like other states. The state has promised we would see reform but nothing has happened. Detroit has begged the state to start their own insurance company because the amount of uninsured cars in the city, but it isn't just detroit, other depressed areas have high uninsured cars.

 

I would believe that Ridgeline is giving you correct information as far as leasing back to the company and corporations and all of that type of thing.

But I'll just add a few things.

First you have to pay the expense of renting a yard in Wisconsin. I'm assuming that you will have to rent a yard in Las Vegas also. That's probably a few thousand dollars a year.

Also, Progressive bases your rate on your radius. Instead of having a 500 mile radius or 300 mile radius whatever you would work, you would have to have a Coast-to-Coast radius which also will raise your rate. Being a corporation could affect your rate also. Coast-to-Coast coverage will significantly raise your rate, especially if a new entrant.

And lastly you can rent yards and tell the insurance company whatever you want. But the bottom line is whatever you tell them is what they will have on your application.

Anything that has been told to them that actually is untrue can allow them to cancel you or to not pay claims or lawsuits.

So if you totaled your tractor, or God forbid someone was seriously injured in an accident with you, they would have every right to tell you that you are on your own.

Insurance companies have incredibly Deep Pockets and on top of a large claim or lawsuit you would have to do battle with them which with all the money and lawyers and everything they have that is a losing battle. And you have no leg to stand on if you have told them something untrue. The difference in insurance premium at that point would be meaningless compared to the battle that would ensue that you most certainly would lose.

You can do whatever you want to do. But in this business with the liabilities with the risks with everything that can happen I myself would never ever mislead the insurance company to try to save money. That is the actual definition of insurance fraud. Sometimes Claims can be a battle even if you've done everything right and they're supposed to pay.

Rather than asking advice on an internet forum, you really need to sit down with a lawyer and talk to the insurance companies and really find out what's going on because like I said there's too much at risk here. And corporations do not Shield you from liability in an absolute and total way 100% of the time.

I wish you good luck and I hope that you don't have any insurance problems. That's kind of the equivalent of a cop having gun problems. It's rarely needed but when it is needed you need to make sure you have no problems.

Make an informed decision that you will be protected Every Which Way. That's the best advice I can give you

That's all the information that I have on the subject so I will back out of the conversation.

Be safe.

 

Just to add something else Dino, when you make a claim for a major accident, insurance companies and underwriters send out investigators who pick through everything, they will investigate you, your company and everyone involved with it. They want to cover their ****** as best they can and while most times it comes back to the point of everything you did was right, there are people out there who will be caught up in questionable business practices and the insurance will no longer be an ally but on the offense to not pay out.

 

I believe as long as you have a registered agent in whatever state you decide to choose, you'll be alright.

 

What you really want to do is form your corporation or LLC in Wyoming. Its anonymous, your ownership is anonymous and not public record and the yearly fees are minimal compared to Nevada. Nevada has good protection and anonymity laws as well, but they are quite a bit more expensive. Wyoming is the best asset protection state in the country. You can easily establish your corporate office with physical address in the state for $300 a year or less. Im shocked at the amount of owners who put their corporations, etc in public view. Asking to get hammered if theres ever a lawsuit or accident. Its flat out stupid in this industry. You simply register that entity as a foreign corporation in the state you live in if you don't want to use Wyoming as your base address.

Now where you claim you park your truck, thats your decision. Who says its ever parked? Your corporate office is in Wyoming, thats where its parked. Now trying to get base plates there, thats a bit tougher as residency, etc comes into play as well as actually driving miles in the state. But for insurance and location of your company, its legitimate and perfectly legal.

 

I’m not sure how legal it is if your truck is in reality not parked there.