Cowritten by U.S. Legal
We at ICSA are always surprised and concerned that too few members are protected by LLCs, or Limited Liability Companies. LLCs are an essential part of how a single-truck operator or small fleet can protect not only their livelihood but also their personal assets. While no one is required to have an LLC, obtaining one can make all the difference in limiting financial distress as a result of any accident, injury, or emergency that occurs on the job. Whether you are a single-truck operator or own a small fleet, you are operating your own business and are responsible for all liabilities.
Here is an all-too-familiar scenario: A carrier involved in an accident is sued for damages by other affected parties, who are often being represented by a less than ethical trial lawyer. The trucker loses his or her case in court, and as the result of an unfavorable legal judgment, their personal savings, home, and other financial assets are seized to pay off any legal judgments or debts left over after insurance is paid.
Think this can’t happen to you? Sadly, the courts are filled with thousands of examples like this, while forming an LLC would have created a separate legal entity that would have helped protect the individual owner and their personal assets. Forming an LLC is just one service ICSA’s partner – U.S. Legal – provides our members. Check them out here.
Depending on where your business is based, forming an LLC can cost as little as state filing fees. In Florida, for example, forming an LLC costs $125 to start, and two annual fees to maintain the LLC (an Annual Report Fee of $138.75 and a Registered Agent fee that varies from $0 to $125). These costs are often tax-deductible, and LLCs as a whole offer tax advantages.
An LLC also offers the benefits of obtaining business licenses and permits, creating better contracts, and opening bank accounts. These features, while similar to what larger corporations offer, are not complicated. An LLC can be comprised of just one individual. In addition to the features mentioned above, an LLC makes it easy to oversee your business operations. Lastly, LLC’s ensure exclusivity for your business name in the state where you are based and provide credibility to any growing small business.
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.