It may not appear like it from the outside, but the trucking industry is actually a pretty competitive field! The growing marketplace means that now more than ever before, it's vital to move goods and products to new cities and states ensuring trucking businesses and their drivers are constantly in demand. If you have your transportation accounts and contracts ready to go, insured your business, obtained a commercial driver's license, and met all commercial transportation requirements, it's time to pick a legal structure that fits your business.
What's the Best Entity to Form?
If you want to be the sole owner... Form a sole proprietorship. For drivers who plan to be their own boss, this is an affordable entity that allows you to be completely in control. However, this also means that everything that happens within your truck whether that means lost/damaged cargo or an injury on the job holds you liable since there's no separation between personal and professional assets.
If you need to keep your personal and professional assets separated... File your business as an LLC. For individual truckers looking to incorporate, an LLC offers flexibility along with liability protection. There are tax advantages available for LLCs and they can also set forth the rights and limits of investors and the powers and obligations of its managers.
If you want to expand your business... File a Corporation. While Corporations offer less flexibility and more formalities than LLCs do, they will provide personal asset protection along with setting up a structure that makes it possible to accept money through investors.
Why Your Trucking Business Needs This Legal Structure
Driving, particularly interstate commercial driving, is risky no matter where you are and the Federal Motor Carrier Safety Administration (FMCSA) regulates all aspects of the trucking industry especially where safety is concerned. In addition to incorporating your business, you will need a commercial driver's license to operate a vehicle legally and will also be limited to the number of daily and weekly hours you can drive due to health and safety reasons. Keep your business and self protected! Form an LLC with the help of our experts who make it easy to file your documents so you can get back to hitting the road.