Hello everyone, My father-in-law has an LLC and his own truck, trailer, MC number, DOT and other paperwork. He has been running his company for 3 years. This year he bought another truck for me to get started in the business. When it comes to the business he wants to be the sole owner of the LLC and suggested for me to open a DBA. After reading about DBA it mentions that my personal property is liable if I set up a DBA. Now I’m leaning more towards opening an LLC for myself to protect my personal property and have tax advantages as a business entity. I am the one paying for the truck and Insurance and also paying back the down payment he put down. As my own LLC, can I still run under his authority (MC and DOT), or will I need a whole other set for myself. I am also looking at creating a lease agreement to take over the truck in couple years when I can show income and put the truck and trailer in my name. Any advice is appreciated. Thank you
You can open the LLC for tax advantages, but don't think for a second it will protect any property. In a lawsuit, the LLC, you, the driver, and your second cousin twice removed will get named. You'll only need a lease agreement to get leased onto his numbers. Get in touch with OOIDA. @Ridgeline
LLC and or DBA is not gonna protect you from anything if you are the driver as well. LLC filing as a sole is nothing in tax advantage either. If filing as a S Cord then it would be able to save.
Won’t protect your personal assets no matter what. Many say it will but they never had to deal with ambulance chasing scum lawyers who investigate you and your family to find all your assets, the only thing that is off limits is retirement funds.
Look into things like trusts and umbrella insurance to personal assets. LLC isn't going to help you much in that department. I set up as an LLC but wish I hadn't bothered because I am not interested in hiring other drivers and neglected to file as an S Corp. LLC is just another fee to pay every year if you stay a one man show.
You don't get much business tax advantage with an LLC. Get a divorce from your wife. Put all your personal assets in an LLC under her name. You run the business and business assets under your name. Don't co-mingle funds or have dual usage assets. Your question about running with you FIL's authority, just write a lease. Good luck
Check with a tax professional, but it is my understanding that you can change the filing status (such as from DBA to Sub-S) of an LLC ONCE. Or it would be simple enough to close one LLC an open another. If you make better than average income, the Sub-S filing status will save some taxes.
Depends on how much revenue you make yearly. If I were you, I'd start off as a Sole Proprietor. It's easier to handle and you'll be able to get a better idea of the business and your income over the first couple years or so.
