Which state should I incorporate in?

Discussion in 'Ask An Owner Operator' started by hsingh28, Apr 6, 2021.

  1. hsingh28

    hsingh28 Bobtail Member

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    I am starting a company and would like your insight on this. The business model will be OTR to all 48 states, and eventually Canada but for the beginning, just 48 states. I will hire drivers when I start.

    I live in NY and want to start the company out of state, either New Jersey, Indiana or Ohio. The reason I want to do this, is because insurance is expensive here in NY.

    An agent told me it would be around $10k for the year in Ohio, and he said Indiana is similar, so in this case, I will open in Indiana because I have more resources ie. truck parking, family who lives there, etc.

    I will look into NJ rates but I am very confident it will be expensive. Almost all agents I have been speaking to told me Insurance companies quote based on where you garage the trucks. But I see a lot of companies that have an Ohio address on their SAFER PROFILE, but their google address is in NJ.

    Either I incorporate in NJ while I live in NY or I incorporate in Indiana while living in NY. Does it make sense to operate the business this way?
     
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  3. Bean Jr.

    Bean Jr. Road Train Member

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    I thought it would too. But for little guys like us, you're best off incorporating in your home state unless the annual filing fee is greater, and you still have to pay tax on top of that.
     
  4. hsingh28

    hsingh28 Bobtail Member

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    New York is extremely expensive though, and I spoke to agents from different states who all said, don't open in NY. There's a mileage radius limit for NY and there's less insurance carriers to work with, when pulling quotes.

    I think Indiana will be my best bet, after speaking to a few other insurance companies. NJ is pretty much the same as NY, but there's more options than NY, in terms of insurance carriers.
     
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  5. Oscar the KW

    Oscar the KW No Filter

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    Why not move to Ohio or Indiana?
     
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  6. GEYBEARD

    GEYBEARD Bobtail Member

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    South Dakota, or one of the State without corporate income tax. You need to compare Annual regesterd agent fees......
     
  7. Wespipes

    Wespipes Heavy Load Member

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    The state you live in
     
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  8. 77fib77

    77fib77 Road Train Member

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    Family in indiana. It makes an address and dmv issues better.
     
  9. Ridgeline

    Ridgeline Road Train Member

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    Do you drive a truck?

    if not buy real estate on spec.
     
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  10. hsingh28

    hsingh28 Bobtail Member

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    Because I like where I live, but it's just the taxes and insurance that's the issue.
     
  11. ZVar

    ZVar Road Train Member

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    So you like all the services, you just don't like paying for them......
     
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