Changing from Sole proprioter to Incorporated?

Discussion in 'Ask An Owner Operator' started by PSM379, Apr 13, 2023.

  1. PSM379

    PSM379 Heavy Load Member

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    I think I’m finally going to try and be a business man and incorporate the business. I have been a sole proprietor operating under my name for 10 years now. Will this hurt me when changing the business name on safer linked to my MC? Or will MC and authority be ok? Has anyone else done this? Should I sell the truck to my business and title it in business name after incorporating? Or lease the from me to the business? I know this isn’t a professional lawyer forum, just wondering if Anyone has done this before, going from a sole proprietor to Inc. thank you
     
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  3. dirthaller

    dirthaller Road Train Member

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    Yes, I did it in 2016 after having been in business for 19 years. Not too hard. You'll have to file a very simple request from the fmcsa for a name change. Now when a broker requests my mc authority, I have to send the original mc that was issued way back in the 90’s and another one that is an amendment (both are stored on the same pdf on my phone as well as my office computer).
    I went to the dmv and changed the registered carrier name and got a new plate no additional charge other than the plate itself. On my registration, the registered owner is the same as it’s always been but the registered carrier is different.
    Most of the other stuff is still lingering. I still get solicited occasionally as my old entity. I still have a few accounts that are under my old business name (not bank accounts my tax guy was animate about that).
    Don’t stress about it just make sure you don’t mix your books. I did it in October 2016 and my tax guy was able to file my ENTIRE 2016 taxes on the new corporation.
    All the w-9 have the new tax id number now (very important not to let your customers use your old one)


    ETA: no this did nothing to make my business or safer look like I’m a new carrier. Still running my old 6 digit dot #
     
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