Buying my first truck, should I form an LLC?

For a single member LLC especially in trucking it’s near impossible for it to protect you in the event you get sued. Reality is their lawyer will do what’s called “piercing the corporate veil” which is insanely easy to do for a transportation LLC because it’s too easy to tie the crash to you being responsible as well as your company.

 

I am not a lawyer but I’ve been told by one the best way to protect your house and other assets is to put them into an irrevocable trust. A normal revocable trust will not be enough.

 

Even more exiciting when it starts to happen. You should read up on advantages of being incorporated. S chapter would probably serve you best. Aside from Liability reasons, tax reasons, You should consult an accountant for tax advantages of being incorporated. Owing the IRS is more excitement than you want.

 

Sorry to burst your bubble, any good lawyer can pierce the veil and have the court account for all the personal assets except those in retirement accounts. This is for both forms of damages someone is going after.

 

Start your authority with a DBA that you can get easily from your county. Worry about the LLC later. Getting your own authority involves a lot of work, learning many new things, and having access to lots of money. Are you also willing to drive anywhere in the nation following the good loads, or just stay within a few states. Load rates go up and down throughout the year, and the next financial recession is said to hit soon. Are you ready for all this? Do you have the money and time to survive?

 

I think what He needs is a federal ID #. Unless running as a sole proprietor, maybe He can use his SS# , not really sure myself.Either way it’s all about reporting income, and as a Sole Proprietor, chances of being audited are much higher. I think I would form the Corp first. That’s what I did anyway, heard too many horror stories about owing the IRS. Surprise out of bussiness after one year. S Corp and a good accountant will pay for itself, from the gitgo

 

You need the EIN for your 2290

 

Sole Proprietor or S chapter Corp or LLC chapter. Everyone’s different, I’ve read twice in 23 yrs that S Corp is the best way to go. Mainly because a portion of pay can be had through a dividend, not subject to SSI. Since you are required to pay both employer and employee portions, roughly 14-15% as a self employed person. It can be quite a bit. Rules have changed recently, from what I hear, the % Of pay subject to SSI vs dividend pay allowed. I only know what my accountant tells Me. And it changes so much, I’m always wrong on my understandings of it all. That’s why it’s very important to Cover your ###. IRS can put You in deep quick. Sole Proprietors audit rates are much higher than INC. rates. That’s been a consistent truth for years. If done right, tax bill should be a minimum. Talk to an Accountant specializing in Trucking.Lots of Experts with advice, best talk with an Accountant. Tax laws Change every year. I certainly don’t understand it, no matter how much I want to think I do. Best $$ you can spend, pay for itself over and over.