LLC setup

These kind of things happen because large fleets that can save any money at all, when it’s multiplied by 100 trucks or so, will do it. For a one man show it’s probably not worth it.

 

why do you call it a trucking business?

Why would you want to make a $150k to $300k investment when your ROI will be less than 3% in the first year if you are lucky?

As for his structure, it sounds like he is trying to layer protections from the liabilities from his drivers to protect his personal assets. LLCs do not protect assets in this industry at all.

My advice is this: first, start with a large amount of money in the bank, it used to be $50k, but I am thinking now it should be three times - $150k. You have to pay the bills when you have downtime and you will have downtime.

Then go to a lawyer and ask him to look over your plans, which I assume are all on paper, and ask him what else can be done to protect you. Also, put him on retainer. Pick one that knows how to engage other lawyers to navigate through YOUR problems, say an accident in Washington or non-payment from a broker.

Then go to a good business accountant who knows how to structure it, pick one in your state, and let them advise you how to do it. Retain them too.

When you get to 50 trucks, or you buy into another fleet, you can start working on an umbrella structure, C-corp, but that's if you survive your first year.