Delaware or Nevada for an LLC

I went Delaware. ill rather pay uncle SAM all day everyday but what I don't wanna pay is BS ligation cases. Most of your fortune 500 companies are Delaware based then registered in their home state as foreign LLC or Corps.

 

The companies advertise on the radio, and tell you that you need to incorporate, or you risk losing it all, and you need to do it in Nevada or Delaware because of taxes.

Unless you will not be the one driving the truck, incorporating does nothing to protect you. As the driver, they'll go after you, and if you get a loan, you'll have to sign as a personal guarantee.

As far as the taxes, if you form an s corp, you will pay the same taxes for your business to your state no matter where your corporation is. If you live in, say Illinois, you will still have to file an Illinois return, and pay taxes in illinois, even if you're incorporated in Nevada.

 

Been a long time since I've looked into this but this is what I recall, phrased as questions because I don't know.....
1. Doesn't Nevada let you set up a Corp without naming the owners or a board so nobody knows who owns the company?
2. Delaware names everyone but they aren't a law suit friendly state?

 

Neither because the LLC won't protect you or your assets from any litigation in this industry.

There is a myth about Delaware and the protections it offers but look at the companies that have been sued over trivial matters and many of them are Delaware corporations.

Nevada doesn't protect the LLC members as you would think, there is still the liability that is present while many will think that they have protections when they don't.

My suggestion is unless you are going to have a 100 truck fleet, then forget these silly ideas and spend the time figuring out how to minimize your taxes.

 

The taxes are the simple side of trucking. You might want to figure out how your going to get good driver to drive your truck.. lots fleet can afford to run brand new trucks and they have a hard time keeping drivers. You don't have to pay any taxes if you don't make any money. Taxes are simple, making a profit that's the difficult part.

 

BUT you miss a point, the taxes are a secondary issue if you are talking about running a business in a business friendly state, registration doesn't matter, you are still considered a foreign entity if you are not physically based there and it is the home state laws that govern the business.

Delaware is just the entities registration state, if you operate out of say Michigan like GM was doing, then you are sued in Michigan under Michigan law. if it has to do with things like fraud, then I think it can but doesn't end up in Delaware courts.

I would agree but today it doesn't always work to minimize it.

You as an owner and driver have a double liability, which can't be avoided or hidden, as an owner, there still is a liability involved with the drivers and their actions which also can't be avoided.

I can't go into great detail but a few months back I was hit by a can hauler who didn't see people stopped at a stop light, I just filed a lawsuit against the driver, his company and the owners of the company, during the investigation of the company, it had a couple layers of entities that were created to protect all the assets of the owners, but as my lawyer said, it won't help and I expect it won't.