Hello every one
Is any one have done going from sole proprietorship to incorporated the company
Any information will help
Thanks
How to go from sole proprietorship to incorporated
Discussion in 'Ask An Owner Operator' started by khan1122, May 22, 2017.
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Essentially you incorporate. You can choose to have the company you use obtain a tax payer ID number or do it yourself. If you own the vehicle, retitle in the corp's name or lease it to the Corp. If you are leased to motor carrier, usually you just sign a new lease. If you have your own authority, contact DOT to change the name and corporate structure. Open a new bank account. And don't forget to file selecting sub chapter s.
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Probably new IFTA account, NYHUT etc etc etc.
BIG QUESTION: will this trigger a new audit?OLDSKOOLERnWV and Bean Jr. Thank this. -
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Well here is advice you need to follow.
Get a good lawyer involved, have the trucks and other assets moved to the corp in trade for the stock, so you are legal, this means that you will transfer everything to the corp and need new plates, new cab card/ifta sticker and all the other great stuff. There are companies that do all of this, so it is transparent but it costs money, so be prepared to pay right to get it done.77fib77 Thanks this. -
This opens up the debate; one truck, one driver? Should you incorp. Do you need to?
Lets give the OP information on how and why. So he can make informed decisions. Should I or should I not?Bean Jr. Thanks this. -
rank Thanks this.
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It's easy advice to give but harder to take but knowing what *I think* I know now, it would be better to start with a corp right out of the gate. You are looking at doing it eventually anyway and it's just a real PITA to switch everything.
However, it can make sense to keep it a sole prop if you anticipate a trucking loss and you can write that off against income form other ventures or employment. Then maybe a sole prop makes sense.Bean Jr. Thanks this. -
I started as an owner operator in my late 20s retired as an owner operator last year at 63. Like @Bean Jr. said, no legal protection, so I stayed sole prop.
I learned very early to study and learn all I could about taxes. By knowing how every penny spent would affect my taxes for the current year, plus the years to come. Knowing this went a long ways toward my success.
I am sure that if an owner operator is successful enough and makes enough money. It is to their tax advantage to incorporate. But then again, I was successful enough as a sole prop, that when I felt I owed to much in taxes, I just went home.
That was me a retired old man. I'm very curious on the views of the successful guys that are incorporated.
This is not a one shoe fits all thing.whoopNride and Bean Jr. Thank this. -
[QUOTE="mtoo, post: 6131247, member: 57517"... I was successful enough as a sole prop, that when I felt I owed to much in taxes, I just went home.[/QUOTe]
That's one way to do it!
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