Big-boy-tex
Member
i am trying to form an LLC. does anyone have any insight as to what are the steps to form one for our industry. i am out of texs and fairly new to all this can anyone help with info..or point me in the right direction
Forming an LLC !@#$@!#
- Thread starter Big-boy-tex
- Start date
Big-boy-tex
Member
well one thing i was told is its less of a risk. hoping that nothing ever does go wrong...
an llc protects you from lawsuits... we are in the trucking industry and know to well the A-HOLE lawyers wanting to smash the trucking companies.it is suppose to protect you from them coming and taking you for every penny..
an llc protects you from lawsuits... we are in the trucking industry and know to well the A-HOLE lawyers wanting to smash the trucking companies.it is suppose to protect you from them coming and taking you for every penny..
mndriver
curmudgeon extraordinare
No, an llc will not protect you from liability.
As the driver, you are personally liable. As the business owner, you are liable.
A 3rd year law student would eat you for lunch on that aspect.
Tax wise, as an llc, you either file as a corporation or on a schedule c. Either way, by the time you are done, your tax rates and base is the same. If anything, you've spent more money on accounting and tax preparer fees than you needed to.
And remember, IANAL. That and $5 will get you coffee as caribou.
Your best advice is going to be to make an appointment in the morning with a lawyer and in the afternoon with an accountant.
Bring the same list of questions to both and take their professional advice. That's why they have the licensure
As the driver, you are personally liable. As the business owner, you are liable.
A 3rd year law student would eat you for lunch on that aspect.
Tax wise, as an llc, you either file as a corporation or on a schedule c. Either way, by the time you are done, your tax rates and base is the same. If anything, you've spent more money on accounting and tax preparer fees than you needed to.
And remember, IANAL. That and $5 will get you coffee as caribou.
Your best advice is going to be to make an appointment in the morning with a lawyer and in the afternoon with an accountant.
Bring the same list of questions to both and take their professional advice. That's why they have the licensure
Big-boy-tex
Member
i already have an appointment set for the lawyer did not think about an accountant. i was thinking ore along the lines of quick books or something similar.
Mike
Well-Known Member
As a sole proprietor, you would still want to go online and get an EIN.
I have websites set up under an LLC because I had various reasons for needing it. For my truck, I simply went sole proprietor and got an EIN.
mndriver
curmudgeon extraordinare
You can apply for a TIN from the IRS and use that to file your DBA with the state. It separates your SSN and your business.
I personally use quicken home&business for my trucking company. I use an accountant only to file my taxes every year.
I am suggesting you talk to an account and lawyer in one day so that you can have it explained to you professionally instead of truckstop counter talk.
In 2000, I formed an s-corp. Biggest waste of my money I ever did for a small business.
This time around, straight DBA.
I personally use quicken home&business for my trucking company. I use an accountant only to file my taxes every year.
I am suggesting you talk to an account and lawyer in one day so that you can have it explained to you professionally instead of truckstop counter talk.
In 2000, I formed an s-corp. Biggest waste of my money I ever did for a small business.
This time around, straight DBA.
Big-boy-tex
Member
read up on dba and there was a few gray areas i was concerned about. in a dba if your spouse helps in any way it is no longer used seen as a dba by the irs. filing taxes at the end of year is also diffrent because when filing jointly it does something with the sole proprietor thing. seems like there might be more room for error. i will be talking to a lawyer monday for sure. thanks for the help truck drivers !
ironpony
Professional Pot-Stirrer
You get the tax ID number from the IRS, but you don't need to form an LLC to get your TIN. You can apply using a DBA as a sole proprietor. And yes, you should never put your SSAN out there in any filing with the FMCSA.
As @mndriver posted, that CRAP you hear on radio and TV about an LLC or incorporating a business protecting you from anything is a load of pure grade A BS. Its all about fleecing an inexperienced new business owner, and providing you with more start-up expenses.
As a business owner and driver, you are responsible for what happens when you drive. Having some kind of LLC or S-corp structure doesn't protect you from liability over what happens on the road. However, no one can sue you and take a retirement account... y'all should consult an attorney here.
Incorporating as an LLC taxed as an s-corp will save you some tax money, eventually. You need to make enough consistently that the savings from the self employment tax on the profits you don't pay yourself as salary is large enough to offset the accounting costs associated with doing payroll. Most likely, this will take awhile... and may never happen considering how many folks run themselves right out of business too.
Its simple enough to change from a sole proprietorship to a corporation when you start making enough money. It does require changing your MCS-150 filing with the FMCSA, getting a new TIN and changing your bank accounts, plus jumping through the state hoops to form the LLC. But you certainly don't need this to start business, and all the extra expense to do this. You're going to have more than enough expenses to git going without spending abunch of money on unnecessary corporate BS.
Big-boy-tex
Member
thats good info @ironpony a friend of mine is going down the same route and he just spent 700$ to have a lawyer do everything for him. even getting his ein nmber. i have looked online at these do it your self websites and its damn near the same amount 610-699. i did research on dba and its half of that with them doing that for you. i am going to have to see if i can find a cpa. and get info on filing taxes every year since i am married and have kids. i read that theres a fine line between d.b.a. filing at the end of the year.
ironpony
Professional Pot-Stirrer
Be very careful about any outfit that does any filings for you, and make sure you understand what they're doing. For example, filing a MCS-150 with the FMCSA to get your authority generates a PIN number (same thing as a debit card PIN) that you must have for changes and renewals on your authority.
The third party outfits that fly after dark will submit their address to the FMCSA to have all documents sent to them before passing it to you, and retain the PIN number. This means they control your authority, and they use it to charge you fees to do anything. This is a scam plain and simple. If you're going to use someone else for this, much of it comes free with a membership to OOIDA or NASTC. Additionally, there is a Facebook group "Trucking Resources" that is dedicated to helping folks through the process on their own.
Don't get screwed!
The third party outfits that fly after dark will submit their address to the FMCSA to have all documents sent to them before passing it to you, and retain the PIN number. This means they control your authority, and they use it to charge you fees to do anything. This is a scam plain and simple. If you're going to use someone else for this, much of it comes free with a membership to OOIDA or NASTC. Additionally, there is a Facebook group "Trucking Resources" that is dedicated to helping folks through the process on their own.
Don't get screwed!
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