LLC

How much of a hassle is it for owner operators to form an LLC? Is it advisable?

How much of a hassle is it for owner operators to form an LLC? Is it advisable?

For those that do not know LLC stands for Limited Liability Company. And to answer the question it's a false protection. The reason I say this is because if you are a one truck operation and you are also the driver and you happened to get sued you are screwed cause the lawyer will come after the company of a professional level and turn around and come after you on a personal level therefore bypassing any protection LLC offers in limited the any damages that a court will award the plaintiffs.

Basically you can loose your business AND personal assets so might as well save your money.

The main reason most people setup an LLC is the tax benefits that they can get if they make over a certain amount of money a year. I don't know that number right off the top of my head but I believe it's 70k or better after expenses.

Guyjax is right...when we went O/O, a friend who is a tx attorney told us not to waste the $$ for a LLC, as it won't protect our business, OR our personal assets, And he chuckled and said that we would never net over $50k...the man knew his business...we never got close....

Thanks so much for taking the time to reply. I really appreciate the information. There is so much to learn about this industry.

That's funny because it only costs $75 to set one up here.

The advantage is tax deductions. Say for instance, health insurance, you can deduct the full amount of premiums if the company pays for them. The bad side is that if you provide the insurance for yourself, you also have to provide it for all employees. There are more tax deductions that you can take as a LLC vs Sole Proprietor.

As an o/o , would you be interested in a site like this https://comfreight.com/truck_details.php?id=7217 ?

That's funny because it only costs $75 to set one up here.

The advantage is tax deductions. Say for instance, health insurance, you can deduct the full amount of premiums if the company pays for them. The bad side is that if you provide the insurance for yourself, you also have to provide it for all employees. There are more tax deductions that you can take as a LLC vs Sole Proprietor.

Insurance companies look at the number of employees and set the rate from there. The reason almost no O/O's have insurance is they can not afford the 700 to 800 fee each month company paid or not. Tax deductions are good but if you can afford 5 he monthly premium then all the tax deductions in the world will not help.