Leasing to myself

Discussion in 'Ask An Owner Operator' started by rogueunh, Oct 14, 2014.

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  1. Oct 14, 2014 #1
    rogueunh

    rogueunh Road Train Member

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    I've scanned the forum, and haven't seen anything really like this. I have a company with company trucks, that only haul our own product. A private carrier you could say. I want to put all company trucks into a different name, such as "ABC Trucking" and lease them all to my company. I've noticed more and more private fleets doing this, for liability purposes, just in case.

    Sounds fairly easy, right? Or will I be surprised by anything by trying to do this?
     
    rogueunh, Oct 14, 2014
    rogueunh, Oct 14, 2014
    #1
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  3. Oct 14, 2014 #2
    TruckerNewbie91

    TruckerNewbie91 Bobtail Member

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    There was a recent case that changed the liability portion out of California. Not 100% sure that it was California though. Anyways, the case had to deal with whether or not a contractor, lessee, of a company such as Landstar or FedEx qualified under the Lease exception. The original intent of the law was to protect companies that lease equipment such as Ryder or Loan Mountain. It was not designed to protect companies that can reasonably control someone's actions. Loanstar can't really decide where you go, but a carrier such as Landstar, Schneider or any other trucking company can. That's the gist of it. It might be in your best interests to sit down with an attorney and get advice on what the best way to set up your business is based on your state's laws.
     
    TruckerNewbie91, Oct 14, 2014
    TruckerNewbie91, Oct 14, 2014
    #2
    rogueunh Thanks this.
  4. Oct 14, 2014 #3
    rogueunh

    rogueunh Road Train Member

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    I am familiar with the Fedex/CA case. They hired "independent contractors" to make the ground deliveries, to avoid things like workers comp etc. Court ruled that, no, they are Fedex employees.

    Other business owners I deal with think I'm nuts to have the primary business actually own all the trucks. They all set up a trucking company as an LLC that hauls all their stuff.
     
    rogueunh, Oct 14, 2014
    rogueunh, Oct 14, 2014
    #3
  5. Oct 14, 2014 #4
    purpleprime

    purpleprime Medium Load Member

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    I think the op just wants to separate the trucking side of his business from the main business sounds smart to me may be a little more work and more paper running 2 businesses instead of one
     
    purpleprime, Oct 14, 2014
    purpleprime, Oct 14, 2014
    #4
  7. Oct 14, 2014 #5
    double yellow

    double yellow Road Train Member

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    I have heard of companies doing lease backs for tax purposes, but I don't think it is for liability reasons. I guess maybe if your trucking company lost a lawsuit and it was found that you (the truck owner) was not culpable, then the lawyers might not be able to go after that asset. Dunno -- probably ought to discuss it with a lawyer
     
    double yellow, Oct 14, 2014
    double yellow, Oct 14, 2014
    #5
  8. Oct 14, 2014 #6
    G/MAN

    G/MAN Road Train Member

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    There can be some tax and liability benefits to separating the two entities. I would get with a good corporate or tax lawer and see if it is best in your situation. I like the idea of keeping everything separate. It can make it more difficult for someone to work their way back to your personal assets in case of any litigation.
     
    G/MAN, Oct 14, 2014
    G/MAN, Oct 14, 2014
    #6
  9. Oct 14, 2014 #7
    Jrdude5

    Jrdude5 Heavy Load Member

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    I think separating the two is a great idea colombo cheese and dairy here in new jersey separates there trucking from the company and been told working great.
     
    Jrdude5, Oct 14, 2014
    Jrdude5, Oct 14, 2014
    #7
  10. Oct 14, 2014 #8
    snowblind

    snowblind Heavy Load Member

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    Taxes are the reason
     
    snowblind, Oct 14, 2014
    snowblind, Oct 14, 2014
    #8
  11. Oct 14, 2014 #9
    Powder Joints

    Powder Joints Subjective Prognosticator

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    I don't believe this protects you at all, you need to talk to your business attorney and CPA not a drivers forum.
     
    Powder Joints, Oct 14, 2014
    Powder Joints, Oct 14, 2014
    #9
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  12. Oct 14, 2014 #10
    j_martell

    j_martell Light Load Member

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    Farmer I worked for did it. Started a trucking company separate from the farm and hauled his own products.....if the trucking side ever went under, the farms would remain....CYA
     
    j_martell, Oct 14, 2014
    j_martell, Oct 14, 2014
    #10
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