I am a California driver soon to be O/O with AB-5 looming......

Discussion in 'Ask An Owner Operator' started by Sinister310, Nov 16, 2019.

  1. Sinister310

    Sinister310 Light Load Member

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    Oct 18, 2019
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    If I established an authority here in California or I established it out of state, apart from having to file my IRP in my home state (Cali) what are the advantages and disadvantages? at 1st I thought that I would save a ton of money starting one up out of state but, IRP is gonna cost the same no matter where I go right?......someone let me know
     
    SimpleTrucker Thanks this.
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  3. x1Heavy

    x1Heavy Road Train Member

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    AB5 is incredibly destructive in California to your plans. Leave the State and find a new one to call home and proceed. It wont be the end of it.

    Its one thing to see a train coming at you which isnt good but quite another to deliberately tie yourself to rail hoping thats not the one with your name on it. Sooner or later you will be run out of there.
     
  4. mover man

    mover man Road Train Member

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    The sky is not falling and AB5 will not destruct the world. Been seeing comments not just here, but all trucking sites I visit. I've noticed most of the posters are the same ones who have always complained about Ca.
     
  5. Long FLD

    Long FLD Road Train Member

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    The way I understand it is since you’re getting your own authority AB5 won’t affect you.
     
    Diesel Dave, Bean Jr., loudtom and 3 others Thank this.
  6. Dino soar

    Dino soar Road Train Member

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    Just my opinion...

    I don't see any reason for anyone to have an authority or a corporation out of your home state.

    The states always get their money. Tax-wise you can't avoid taxes in your home state. You may even end up spending more having everything out of state.

    When you file for your Authority you need to have an actual physical address that DOT most likely will come to give you your new entrant audit. That address is to be your principal place of business.

    You also need to disclose to the insurance company the physical address that your truck will be parked at and what is HomeBase.

    If for some reason you did not give them the authentic home base and something happened, they can easily deny your claim, which could be astronomical.

    I see no reason to do anything outside of your home state.
     
    Bean Jr. Thanks this.
  7. Dave_in_AZ

    Dave_in_AZ Road Train Member

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    If God would just snap it off into The Pacific, we wouldn't have these situations.
     
  8. Hayfieldmn

    Hayfieldmn Light Load Member

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    Maybe give it to mexico and put a wall up there too??
     
    JonJon78 Thanks this.
  9. mover man

    mover man Road Train Member

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    Sure wall of 5he worlds 5th largest economy. Then we can pay import fee's and tariffs on all our comp and other electronics stuff.
     
  10. win-some-loose-less

    win-some-loose-less Medium Load Member

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    I always see the 5th largest economy thrown out in defense Of that turd but it’s never followed by how comifornia ranks really low in fiscal responsibility even with the large economy.. give it a few more years of buisness flleeing the states policy’s and tax system and we will see how high the economy is
     
  11. Bean Jr.

    Bean Jr. Road Train Member

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    I wish I could like your comment 10 times! I opened a Corp in Nevada because the ads said to. Nope, still had to pay state taxes, and opening a bank account was a hassle.
     
    Dino soar Thanks this.
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