Truckers Report Jobs

Find Trucking Jobs

Company Driver Company Driver Dry Van Dry Van Flatbed Flatbed Refrigerated Refrigerated Specialized Specialized Owner Operator Owner Operator
More Trucking Job Searches ⌄ Fewer Trucking Job Searches
⌃

Got DOT/LLC set up, but might not go forward with operations... next steps?

Discussion in 'Ask An Owner Operator' started by speedstickman, Mar 30, 2022.

  1. Mar 30, 2022 #1
    speedstickman

    speedstickman Light Load Member

    66
    20
    Jul 10, 2012
    0
    About a year ago I decided to buy some trucks and start my own trucking business.

    I went ahead and started an LLC (in CA) to run under, as well as applying for a DOT# (not active yet)

    Things got delayed and was not able to get trucks within the timeframe I was expecting, and prices now have gone up to ridiculous numbers. Gas prices are also stupid high, and who knows what the future holds with the whole Russia/Ukraine war going on and the high probability of a recession happening soon.

    I have not made a decision yet, but just wanted to know what would be the steps to take if I decided not to go forward with this venture... don't want to get hit with some unexpected fees/penalties. Want to make sure i dont leave anything up in the air that could come back and bite me in the ### in the future...

    Do I need to "close out" the LLC ? is there any way I can recoup some of my business expenses without having made any revenue? What about my authority, do I need to notify anyone or can I just leave it the way it is right now? (applied, got dot# but not active yet since I did not get insurance) - Just want to make sure it's a clean break.

    Appreciate any feedback in advance, thanks.
     
    speedstickman, Mar 30, 2022
    speedstickman, Mar 30, 2022
    #1
  2. Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  3. Mar 30, 2022 #2
    kranky1

    kranky1 Road Train Member

    2,253
    8,854
    Sep 16, 2015
    Ontario, Canada
    0
    Talk to the lawyer that set the company up. They’ll tell you what you need to do to put the LLC on the shelf for a while. Your specific current situation will dictate what has to be done. What it will cost you to keep the LLC in compliance with the State and regulatory bodies will be less than the cost and agony of starting from scratch again later.
     
    kranky1, Mar 30, 2022
    kranky1, Mar 30, 2022
    #2
  4. Mar 31, 2022 #3
    speedstickman

    speedstickman Light Load Member

    66
    20
    Jul 10, 2012
    0
    I set up the LLC myself and I am the only member...
     
    speedstickman, Mar 31, 2022
    speedstickman, Mar 31, 2022
    #3
  5. Mar 31, 2022 #4
    roxbo

    roxbo Bobtail Member

    15
    17
    Mar 24, 2022
    0
    You will have to file tax returns as long as your LLC is active. I would check with FMCSA if you need to do something on the MC/DOT side.

    It’s probably a good idea to put your business on hold for now. The cost of new and used equipment is out of this world - just unbelievably crazy.
     
    roxbo, Mar 31, 2022
    roxbo, Mar 31, 2022
    #4
  7. Mar 31, 2022 #5
    MonetaryWage

    MonetaryWage Light Load Member

    112
    97
    Jan 28, 2022
    0
    File taxes via TurboTax on your business. Open a business bank account and start depositing all of your money into the account (you can take it all back out, it doesn’t matter). What you are doing is establishing monthly revenue for the account. If you go apply for a loan, they’ll want to see how much money goes into your account monthly. They also want to see you’ve been in business for usually 12-24 months so let it “season”.

    I’m new to trucking but not to business. I’ve received over $1 million in business loans in other industries based off of what I just explained. Lenders always only look at the amount of money going in. They rarely care about the withdrawals.

    Can’t help you with the MC side of things yet though. I’m still learning that.
     
    Last edited: Mar 31, 2022
    MonetaryWage, Mar 31, 2022
    MonetaryWage, Mar 31, 2022
    #5
  • Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.