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View Full Version : Need advice!! LLC? OR NOT!!


stonedawg
02-28-2006, 08:10 AM
New to the business and I was wandering: I work alone. I have a license from the county I reside.(100$ with 0 employees). I have purchased liability insurance for 500K and now was wandering if I should go through the state and become an LLC?? I was also wandering about making my truck "business only use" so I can write it off. Can I do that considering I already owned the truck?? Do I have to show that I sold it to the business? The business is my name anyway.. Thanks for all the advice!!

Green-Pro
02-28-2006, 09:39 AM
Go to your Secretary of Sates website for information on registering as an LLC, it is a relatively easy process here in Iowa and I would venture its not that difficult elsewhere. This is something you should be able to set up yourself using their website, thereby saving yourself attorney fees. The truck title can be transferred to your LLC for a small processing fee (again based on our local regulations) but there really is not a significant benefit to you or the LLC. When I bought my truck I bought it through the LLC and had it titled as such, the thing you give up doing this is possibly a little cheaper insurance as a multi vehicle discount on your personal insurance.

Eclipse
02-28-2006, 10:04 AM
Go to your Secretary of Sates website for information on registering as an LLC, it is a relatively easy process here in Iowa and I would venture its not that difficult elsewhere. This is something you should be able to set up yourself using their website, thereby saving yourself attorney fees. The truck title can be transferred to your LLC for a small processing fee (again based on our local regulations) but there really is not a significant benefit to you or the LLC. When I bought my truck I bought it through the LLC and had it titled as such, the thing you give up doing this is possibly a little cheaper insurance as a multi vehicle discount on your personal insurance.

You insurance, at least your general liability, will be more expensive as an LLC.

There is more to becoming an LLC than filling out the Articles of Incorporation with the state. It is not that difficult and can be done yourself, but if not done properly it is a waste of time and energy because any prosecuting attorney can see right though a poorly setup LLC or INC and you will not be relieved of any personal liability.

With vehicles the person titled as the owner of the vehicle is also liable in the event of an accident. Since you have no. employees I do not believe this to be an issue for you at this time since as the driver you will be liable anyway. If you were to have employees you would either want to put the truck in the name of the LLC or if you choose to leave the title in your name you could lease it to the LLC.