Starting an LLC/ Own Authority

LLC is a joke unless you're going to hire a driver

 

Basically to clarify that, the LLC is to protect your personal assets in the event of being sued. However if you are the only driver they can sue your company and you as the driver. So unless you have a hired hand who wrecks the truck the LLC wont help. As far as authority I would prefer to run under someone else's if I was leased on with them. They will probably let you have your name still on the door if thats the main thing and its much much much less work and hassle for you

 

Most of the benefit of an LLC goes out the window as soon as your bank makes you sign a Person Property Security Agreement, and they will, trust me. You won’t have access to any credit facilities until you sign one. You would still have some protection from civil liability matters, but the bank is going to want a direct pipeline to your personal assets to secure any credit they may extend.

 

So much BS in this thread it's not even funny...

 

Advantages of an LLC Compared to a Sole Proprietorship and a Partnership

Owners are Not Personally Responsible for Company Debts

This is the most important attribute of an LLC. In a sole proprietorship and partnership, the owners are personally responsible for business debts. If the assets of the sole proprietorship or partnership cannot satisfy the debt, creditors can go after each owner's personal bank account, house, etc., to make up the difference. By contrast, if an LLC runs out of funds, the owners are usually not liable.

Please note that under certain circumstances, an individual member may be liable for the debts of an LLC. These circumstances include:

• If a member personally guarantees a debt.
• If personal funds are intermingled with LLC funds.
• If the LLC has minimal capitalization or insurance.
• If the LLC fails to pay state taxes or otherwise violates state law (like defrauding consumers).

 

Do you get better tax breaks if you’re filing as an LLC?

 

No one mentioned S Corp. Main reason to incorporate besides Liability is taxes. Being paid via dividend as opposed to payroll as Sole Proprietor. Recently % of pay ( maybe 50%) has been limited. Forcing % of pay subject to normal payroll taxes.Including all Social Security ( roughly 15 %).Partially closing the so called loophole.Its called a flow through Corp. It never makes a profit and never pays taxes. Instead Money flows through to you where it’s subject to taxes. The Controversy is over the way you take the pay dividend vs payroll. Bottom line you pay less Tax. However you’ll also be paying less in Social Security. The idea is to invest the savings into some form of IRA.I have Accountant handle all that as It’s easy to get stuck with a huge Tax bill otherwise.These are my rough understanding of Corp rules. Best to consult an Expert. Ask about S Corp vs LLC. Best Someone familiar with Trucking

 

I dont think so. You get a llc then back it up with an S Corp . Its a different tax structure than Sole Proprietor. It saves me about 3 grand a year in taxes . If you make less than 45000 yr than an S Corp is same tax structure as sole propriertor. As i understand it.

 

For tax purposes yes it has its advantages, for liabilities, there are none when you are an O/O.