question about my LLC state vs MC state

Discussion in 'Ask An Owner Operator' started by crocky, Aug 12, 2019.

  1. crocky

    crocky Heavy Load Member

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    Hey I have a question for you guys that maybe someone can help me out with.. My LLC is based out of Missouri because when I started driving I was at Prime. I got my CDL with them and ran a lease truck for a year and a half. When my lease was up in January of this year I went home to FL and took the last 8 months off..

    I'm now starting the process of getting my authority and didn't think about this until now.. I live in FL, but my LLC is based in MO. Do I need to transfer the LLC to FL or can I leave it based out of MO but get my DOT/MC in FL?
     
  2. GreenPete359

    GreenPete359 Road Train Member

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    Talk to a tax guy and register your llc in a state that makes you pay the least in taxes.

    I’ve thought long & hard about moving mine to DE from NJ.
     
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  3. crocky

    crocky Heavy Load Member

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    Do you know if there is any issues having the LLC in one state but the DOT/MC in another? That's my biggest question..
     
  4. Ridgeline

    Ridgeline Road Train Member

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    Dissolve your LLC in MO, and create a new one in Florida. If you have the authority in MO under the LLC, then that has to be transferred to the FLA LLC.

    LLCs are governed by the states.
     
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  5. crocky

    crocky Heavy Load Member

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    Humm I dont really want to dissolve it, I've been working on building up credit under that LLC. I'm 2 years into that process now so I can buy my equipment under it and so forth.

    I dont have my authority yet, starting the process now, I only have my existing llc.

    Also I have a awesome single word name for my company under the current llc.

    I did a bit of searching and seems you can transfer to another state so maybe I'll look at that.

    I guess I will also get a quote on insurance out of MO instead of FL.. Hell FL is so expensive it might be worth renting a $100/month office in MO to operate out of...

    I'm sure there is a reason all these big Trucking companies operate out of there.. lol
     
  6. Ridgeline

    Ridgeline Road Train Member

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    Well it is called domestication of a foreign LLC, and it depends on if Florida allows it, I don't know if they do. This way it is a transfer, nothing more.

    You can operate the LLC out of MO if you want, you will have to deal with a few things that the state requires and it isn't all that bad to deal with.

    By the way, speaking about insurance, I had a co-worker at the temp agency who put all his cars, truck and motorhome under the company name that was out of some eastern state because insurance for all the vehicles was less than what he was paying for one here. It was such an amazing difference that has paid off for him.
     
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  7. crocky

    crocky Heavy Load Member

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    Yes.. it seems I will be getting my authority in MO after I talked to my insurance agent... Holy heck the insurance rate difference is quite simply "AMAZING"..

    It's crazy what the difference "1 day" makes... Yesterday, I was quoted roughly $20k for a new MC# for a Auto carrier/general freight on my hotshot truck..

    I called back today to see what they would quote me for MO.. Well turns out that today was a special day.. Back when I 1st got my CDL, I made a noob mistake and love tapped a side skirt of a Cascadia on a snow covered parking lot. I mis judged my backing because I couldn't see the lines and I realized it and stopped but I had just barely touched a side skirt with my trailer.. It made a small crack the side skirt plastic but was under $500 damage but still it was on my record..

    Well un-be-nonce to me, today was the day that dropped off my licence (3 points) so in less than 24 hrs my insurance quote went from $20k yesterday to $12k today (this is financed prices it's $11k and change cash)

    Yes, a $500 mistake was going to cost me almost $8k a year on my insurance...But wait.. there is more...

    I got the same quote for a MC run out of Springfield , MO... Still a auto carrier/general freight of a 1st year MC# with 1 driver being me...

    $8,5k /year financed... $7,8k cash

    I guess I will be operating out of Missouri.. For the difference I can rent a office there and still save several thousand a year.. Yes in 24hrs and changing states I managed to save $11k on my insurance rate..
     
    Last edited: Aug 13, 2019
    77fib77 Thanks this.
  8. 338-Dark-Knights

    338-Dark-Knights Light Load Member

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    Maybe look into virtual office space. Someplace that has the necessary compliance codes to be a building and collect your mail. Often times they rent 'rooms/office' and have 'common areas' to keep up with standards.
     
  9. crocky

    crocky Heavy Load Member

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    Yeah that's what I'm looking at.. Had a bit of truck trouble and had my truck & trailer stranded the last 2 days so been tied up dealing with that, but I still need to do a bit of research on if there are any issues using a "office space" for my DOT/MC numbers.
     
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