LLC and foreign qualification (multi-state commerce)

What?

Let's start with why an LLC?

AND if you are operating say in Indiana, you are plying a trade that you hold or under lease of an authority for interstate operations, which means you deal with Indiana only, not all the other states.

 

An LLC doesn't protect your assets, don't care what people say, know this first hand.

That aside, you don't need to register in every state you operate in, it is a federal thing that causes this to be easy when you have or lease under an authority to operate interstate while LLC and corps are all state things.

I would talk to a good lawyer and accountant to see what your plans are and what entity will give you the best way to limit tax liabilities.

i would think long and hard about what you want to do, the truck funding is the easiest part, the breakdown fund, the maintenance and so on are the hard part - you don't finance that, that has to be capital reserve funds.

 

Unless your wanting to be a full blown independent, you don’t need to do that. Most O/O’s, and a lot of lease operators get an LLC and run under a lessors authority.

 

Once you have interstate authority and so on so forth, your home state is the one you deal with.

YOU DO keep track of what fuel you buy in what states and how many miles run in each one.

The word Foreign is unnecessary here.. We are one Nation composed of 50 states and a few other areas over the sea.

When you incorporate a business your personal assets are separate. UNLESS you did commit a crime so severe and are successfully sued for everything you are as a result in Civil Court. There is no protection then. Unless you have Civil Suit insurance for a couple of millions in coverage. Among other required insurance coverage.

I don't think I will be posting here again, my knowledge is all there is about this.

 

A couple things.

First x foreign means out of state, each state governs how corps and business entities exist and what laws they are established and operated. A Michigan company has to register in another state as a foreign entity.

Second the llc is a simple form of protection for businesses where the liability risks are low, like manufacturers and retailers. In this business, an owner has direct control over the policies and operating procedures of the truck, wether they are a driver or not. Telling a driver to cheat on their logs is one example, another is not maintaining the truck correctly. As a driver, under federal regs, you are the last decision makers and make poor decisions that can cause loss of property and life.

People think that llc will protect their assets, this is a sales pitch, it has been in court a bunch of times where the judge examined the owner's finances for punitive damages and used those assets, just like a CEO who caused death or destruction as head of the business, the only thing that is not included retirement accounts and investments.

I wou