IncSmart Texas (Small Business and Startups) - You own and operate your own truck or even several 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, and even your truck.  You must incorporate your truck to protect you and your family.  You may be found personally liable if you are behind the wheel.  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
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

***UPDATE*** 6/10/2017
Trucking companies that use independent contractors enjoy Trump deregulation.  The Department of Labor withdrew an Obama-era guidelines that some viewed as an attack on the owner-operator model used in trucking.  This guideline said the department would consider most workers to be employees under the Fair Labor Standards Act.

For 10 years, IncSmart.biz Business Services has helped companies and people from all over the world form Texas Corporations and Texas Limited Liability Companies. When you call, email, text, message or live chat with our office, expect personal attention.  Small business is the heart of IncSmart.  #incsmart


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