New to O/O
Discussion in 'Canadian Truckers Forum' started by Countrylivingtrucking, Jan 22, 2020.
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even if you do a personal guarantee on a loan it can be quickly dismissed if business goes under and you file for bankruptcy.
in other words corporations protect the owner from law suits not from criminal behavior. -
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Seriously, I am certain you know a lot more than me about the routes out of or through failure. But I've been self employed since I was 18 and I'm 62 now, not made a great success of everything I've done but never been near bankruptcy. But I've learnt plenty about taxation and liability.not4hire Thanks this. -
In all these years I have learned to always pay my debts and honor my word. Now when I lost money in the stock market no one said “hey let’s pay this guy back” because I knew it was an investment. When a bank loans a company it’s an investment and they want a certain % for their loan on top of the principle. In other words if business goes under I don’t care how much you cut and slice and do all sorts of math, if you can’t pay the loan you can’t pay it.
see the great thing about this country and what makes it great is you can fail as many times as you want but it only takes 1 success to whips out the 100 failures.
In other words if there was no bankruptcy laws protecting people from banks and creditors people wouldn’t Take the risk of starting a business. How many rich people are there that have failed many times before making it rich again. In other words system is designed perfectly and designed for the man or women who aims for the moon and then tried his best. -
Theres some very good points there that I've not looked at the same way but will think about.
Only thing I would correct is self enrichment, honestly my whole life has been self indulgent. Liked motorbikes a lot so gave up my safe insurance broker job to be a motorcycle messenger when I was 18 and it's gone on in many odd directions from there but always to do something I wanted at the time.
I've never liked paying taxes, not a moral thing or anything like that just dont like them but I know I'd hate prison food or hunting the soap games so I've tried to be legal whilst carefully working the system to my best advantage and a lot of the time incorporating was going to be detrimental to my tax situation. And then sometimes it was the best thing to do, theres no one size fits all.
I've never planned anything I've done with failure in mind as I'm not much of a gambler, just someone who doesn't like to be managed or have a boss and just wants to get along.not4hire Thanks this. -
If you are a 1 truck show with you doing the driving being incorporated is pointless unless your net income is above, I think it was $150,000. I don't remember for sure so ask your accountant.
He also told me that he has some o/o clients that are incorporated and don't need to be just because it makes them feel protected although it is a false sense of security.
Best advice is talk to your accountant and lawyer to find out what is best for your situation. -
I'm not suggesting any aspiring one man band with a truck has any similarities with that type other than the maybe over reliance on the incorporated magic bullet, and that's not likely to end up as them being mr bigs new lady dog but there are always consequences .mudflap77 Thanks this. -
Especially as a start-up, the corporation directors are going to sign personal guarantees anyhow, so protection from bankruptcy is very limited. Protection from fraud is non-existent. Aside from any tax advantages (consult your qualified adviser), there will be protection from liability to the extent that any such liability is attached to the corporation only and not as a result of negligence, malfeasance or other inappropriate actions on the part of the owner/operator/director. Once the corporation financials get strong enough, then the director(s) can likely extricate themselves from that liability.BigHossVolvo Thanks this. -
Cheersnot4hire Thanks this.
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