You own and operate your own truck or even own up to four rigs. One serious accident involving one of your rigs could put your personal assets at risk. Your insurance is suppose to cover all of the expenses, but often times they don't. It's during these
incidents when the accident victims will go after you and your assets like bank accounts, cars, houses, trucks, etc
OWNERS OF ONE TRUCK:
You must incorporate your truck to protect you and your family. You may be found personally liable if you are behind the wheel.
OWNERS OF MORE THAN ONE TRUCK:
Most owner-operators who own more than one truck are still doing business in their own names as sole proprietors. If an accident occurs, then the victim will go after the business assets AND the owner's personal assets to recover damages.
Never put all of your trucks in the same corporation. If one of the trucks gets into a serious accident the victim will go after ALL of the business assets - the other trucks! This accident involving one truck has now bankrupted your whole trucking business.
Forming multiple entities where each own a single truck, is using great strategy and is one of the best protections you can have. That's why a lot of the big transportation companies use this strategy. Not one major trucking company owns a rig. Each truck is a separate entity. Trucking companies use this strategy for maximum protection from lawsuits, and so can you.
The first entity is a Nevada Subchapter S corporation. This entity is your operating company. This is the company you use with your customers and suppliers, and all payments go into this company. Using a Sub S Corporation for the operating company gives you tax advantages and separates your trucking business from you personally. It protects your personal assets from vehicle liability, but it doesn't own any rigs.
Each truck is owned by and titled in the name of a separate LLC. Each truck is then leased to your operating company under a separate contract. Consequently, if one truck is involved in a lawsuit, the other trucks can keep on rolling without being touched.
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