Llc vs corporation

Find a good CPA and ask those questions in private.

 

CPA for the tax questions and a lawyer for the liability questions

 

Make sure the cpa you choose is experienced in the industry also. Mine changed me over to an LLC and files my taxes as an S Corp.

 

Yes, if you are the driver, a legal entity will probably not protect you in case of an accident, but it is possible to get corporate financing without using a personal guarantee, which is an advantage of a corporation.

 

Maybe yes. Maybe no. I know enough to know I don’t know enough to say.

If I’m the driver, For sure it won’t protect me against being charged. But it might protect me (the driver) in a lawsuit if I don’t have any personal assets (everything owned by the company or wife). Whether or not civil courts can pierce the company veil will depend upon where the company is formed and how it’s structured and probably a myriad of other things. I think is too complicated to say for sure. I’m quite sure there is a way to protect your assets if set up by someone that knows their stuff

 

....and then there’s the issue of selling the company down the road. My father got his numbers as a sole prop back in ‘82. When I was ready to take over, I was told by Ontario that He couldn’t sell his operating authority to me because it was a sole prop. This means instead of buying the company and all its assets, all the trucks and trailers are in his personal name and required purchasing separately and ownerships transferred to my new company. It means a new operating authority and a new audit. It means new broker packets. It means new IRP plates. It means a new insurance policy.

It’s a giant PITA

 

S Corp. I think you’ll lose out on the tax advantages,if paid regular earnings by a different Owner. Best consult a few Accountants. Or one that’s highly recommend at least.