Partnered with U.S. Legal
In today's complicated business landscape, setting up a Limited Liability Company, or an LLC, as an independent contractor is extremely important both personally and professionally. The reason is simple - as an independent contractor, you operate your own business and are responsible for your own assets and liabilities.
If you were to be sued for damages following an accident, or for any other reason involving your business, your personal savings, home and other financial assets could be seized to pay off any legal judgments or debts. Forming an LLC effectively prevents this by creating a separate legal entity, then operating it like a business. Instead of your personal assets the LLC would bear the brunt of financial responsibility.
An LLC also offers identity protection in today’s online world. Your potential exposure is increased by registering with the DOT as an individual, sole proprietor. This is because the name, address, telephone number, and email address registered will be publicly available on FMCSA’s MCMIS database. If you use your personal information as your official business contact information, it will be available online. And now, with FMCSA’s new requirement to submit a copy of your driver license with certain reports, protecting yourself becomes more important than ever.
The FMCSA is aware of the threat of identity theft and issues a warning on this potential exposure by urging sole proprietors to obtain an employer identification number (EIN) rather than submitting a social security number. Establishing an LLC with an EIN, with a separate business address, (for example, a post office box,) phone number, and email address protects you from potential theft of your personal identity.
Securing an LLC and enrolling in CDL Defender, offered through our partnership with U.S. Legal, is the most surefire way to protect your livelihood. It’s cost-efficient, too. For $29.95 a month, CDL insurance provides coverage and legal support for a range of issues: representation for traffic violations and license protection, to name just two. Depending on the state you work in, forming an LLC can cost as little as state filing fees - for example, in Arizona, the fee is $50 to establish the LLC. Some states also require an Annual Report Fee and/or a Registered Agent Fee. U.S. Legal handles LLC formation in all states and knows each state’s requirements.
Identity Theft Protection, combined with an LLC, ensures the utmost personal and professional security. Both are important, proactive measures that can reduce the impact of identity theft. This combination also ensures access to legal expertise when it would be needed the most. While we can never be absolutely sure about all state laws and cases involving independent contractors, many recognize a business-to-business (B2B) exception to the restrictions on independent contractors. These laws and cases usually have a set of specific standards you are required to meet. However, having LLC status provides a foundation to build upon for meeting the B2B requirements, and U.S. Legal does the rest.
Every year, TAT (formerly called Truckers Against Trafficking) honors a member of the trucking, bus or energy industry, whose direct actions help save or improve the lives of those exploited or prevent human trafficking from taking place, with the Harriet Tubman Award
Bob Costello has indicated that the freight market has improved – but very slowly – since January. It must be said that ATA’s indices are dominated by contract freight as opposed to spot rates.
Now, however, with Republican control of both houses of Congress and the White House (and, some say, the Supreme Court) I am optimistic that trucking will get a fairer shake than it has during Biden’s term in office.