Buying my first truck, should I form an LLC?

IT doesn't matter how it is setup, it is not going to protect anyone in an accident or other legal problems. Courts have attached personal property to settlements with LLCs because of negligence.

As for the accountant, I don't get you guys with these "trucking" accountants, many of them aren't worth a *********, seek out a good accountant that can guide you through setting up a business and making good decisions.

 

We have a perfect case study right now in Castellano 03 Trucking LLC. Two weeks later and nobody knows who the owner is. All we know is the Member Manager is Yaimy Dalan. A quote from the website of the Texas Secretary of State...”we do not maintain ownership records of LLC’s”

I’m guessing the assets inside the LLC are toast but the owners assets.....and identity appear, at least for now to be safe. As far as the drivers assets, yes they would be gone but I’m pretty sure someone smarter than me can figure a way to pay his driver self a salary and Have his personal assets somewhere else.

 

I’m no expert, only know what I’ve been told by so called experts. Usually a Lawyer will go after the insurance. Easy money,Digging deeper is possible, but a hard case to pull off if you’re adequately insured. Aside from some sort of Outrageous Negligence on your part. Or lack of insurance, You should be covered.After 16 yrs Driving T/T without an accident. I had 2 accidents 11 yrs ago,almost back to back One minor, One major. No real injuries, but my Truck was towed, therefore considered a major. Both parties could and probably did pursue Legal actions. I have no idea, never heard a thing. Insurance barely went up. I was sure it would be much worse. Thank God no accidents since. It took Me about a year to get comfortable in a Truck again.Just the thought of another accident, and financial disaster had Me stressed out. Meanwhile back in the million mile club.Now I really need to be careful. Good Luck to You. Ask lots of questions, Good thing about Trucking is no one expects You to know much!!! Lol

 

Depending on where the case is filed, a member manager can be held liable for the actions of the company because they are a responble party. Texas may be different, these laws and entities are not uniformed at all while they should be.

The only asset that can't be touched is a retirement asset, everything else can be used for a settlement.

 

I think the idea is for there to be very little in the way of assets inside the LLC.

 

Yeah that's the idea but that does not mean any court action can't extend to the management of the LLC, which has been done many many times in the past with fraud and negligence.

 

Don’t forget civil court.

 

Understood. I don't know anything about LLC's but the statement from Texas that they don't maintain ownership records of LLC's was interesting. What if the Managing Member passed away or moved out of the country?

 

Very true. First few years I signed as owner where it says title. My attorney advised changing that to “member” which I’ve done ever since. I never knew any better.

 

Also, this year I decided to get an umbrella liability policy for an additional 3 million dollars. It cost a pretty penny but the extra protection can’t be measured in dollars for the extra comfort and sleep I get each night. My attorney said he recently saw a case where a big truck had unfortunately taken out an entire family in a car and the settlement was 4 million dollars. Spooked me enough to take additional coverage seriously. My insurance guy said he has an 80 truck fleet that gets an extra 10 million blanket policy since they have a lot of assets aside from the company like farm ground. They pay 6 figures for this protection each year.