incorparating

[animal72830]

please some one help me with this.i have been an O/O for 2 years, I have been advised to incorparate, but am not sure on what type or which state . i was told that you do not have to live in the state you incorperate and there are advantages in some states. ????

[Admin]

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THEY DID A GOOD JOB FOR A GUY I KNOW VERY WELL.
I HAVE TO FIND THE WEB ADDRESS AND LET YOU KNOW. :)

[Admin]

OK , I FOUND IT .........http:// www.legalzoom.com

and they did a good job :)

[daytrader]

Incorperate to lower risk.

Very simple.

Say you and the wofe own a trucking company.

You set it up as a CORPERATION. You line the required jobs out right (titles). You get a devorce after like 10 years. The company is fine. You can be broke as they come. You can be worth millions (well the corp can). Its a game.

Also, find out how low your insurace bid is once you are listed. Make a 50% DIFF. Why pay 14k a year to haul everything. When for a simple paper work deal you can pay 7k and still haul anything and liquire.

Corperations offer one thing. Security. To you, the insurance companies, the lenders and to the investors.

[Big_Al]

Go to http://www.sunbiz.org. You can file a corporation yourself without a lawyer, etc. for $ 78 in Florida. But however you do it, just do it.

It amazes me the number of O/O's who tell me that their accountants have told them there is no advantage to incorporating. If your accountant tells you that, find a new one IMMEDIATELY. They are either lazy or imcompetent if they tell you that. Every business should be incorporated. Besides liability issues, you can save a PILE of money in taxes.

Good luck!

[nitestar]

One negetive thing about incorporating is that you pay taxes twice. once for the corp and once for you.

do you really want to do that?

Also you are not exempt from lawsuits.
You can be sued as driver if you are the driver ( assuming vehicle accident) and also if you are an officer of the corp.

If you feel the need to do something like that go LLC. Limited Liability Corp. You can be sued but they can only get the value of the LLC.

Frieghtliner is an LLC.


To completly protect yourself you should do a Revocable trust.
This way you own nothing, It ( your worldly goods and items such as your boat, jewelry, camper, house, investments ) by act of the trust belongs to whom ever you designate them to. You retain the right of usage.
Simply put, if you don't own it, they can't take it from you

I did that and it is a good deal and can be changed anytime you need too.
In Kansas a revocable trust is for up to $600,000.00 in value.


Before you do anything go see a lawyer that specializes in corporations. Not one that does workmans comp and divorces.

I am not a lawyer but I talked to several about LLC and Corps and the Revocable trust covers us just fine.

Most people incorporate for all the wrong reasons and still loose everything.

It is not easy to absolve a corp either.

[Big_Al]

One negetive thing about incorporating is that you pay taxes twice. once for the corp and once for you.



Not if it is a Sub S corp. You pay yourself a salary and remove the rest of the income as a disbursement to a shareholder. There are no Social Seurity taxes on the disbursements, which saves you a bunch on taxes.

No matter what type of entity you form, if you are driving, you can have some liability. But it's not likely to be beyond your coverage limits. Moving assets in a trust after an accident can be construed as fraudulent conversion of assets and a judge can get at those. If you move them in advance, then you risk losing them if the person you convert them to incurs some kind of liabilty. There are a lot of what if's for sure. But operating a commercial vehicle as a sole proprietor is totally senseless.

[nitestar]

I lease my truck from the bank. no loan noownership. Can't take what I don't own.
I want to pay my Social Security so I have more when I retire. I didn't start my 401 and other plans till late in life so I can't count on them for regular income in my later years.YET
I don't have much of value in my name.I don't think I will lose much.

Nothing wrong with a sole proprietership, just depends on which state your from.

I am comfortable with the way I have it now. I thougjht of going into a Corporation but it is way too much BS and don't want to spend my free time doing the Corp thing.
It may work for some and not for others.
I think I would still do a LLC . Seems the best for Kansas residents.
Kansas does not accept a blind corporation.

[magicman]

The biggest thing a corporation is good for is simply taxes...That is if you have NO employees. Then, it will protect your assets to a certain extent.

Taxes: Income after expenses, let's say you end up with $ 100,000 to make it easy. If you're not a corp, you'll pay 15.3% of that amount, or $ 15,300 for FICA taxes. That's the company's share and yours. Also known as self employment tax.

A corp would pay you a reasonable salary, such as $ 50,000 and the rest would be dividends. In other words, FICA would only be 50% of $ 50,000, or $ 7,650. The Corporation would save you $ 7,650 in that instance. I'd say that's worth going to the extra work involved in a corp.

Employees: If you have an employee driving for you and he has a wreck, you WILL be sued. It's the American way. With a corporation, you have the corporate veil to protect your personal possessions. It CAN be "pierced", but it takes quite a bit of work.

If YOU have the wreck, you will not be protected from a lawsuit against you, yourself, as you're the person that was in DIRECT control of the vehicle.

Hope this helps a little.