When you go from driving a truck for someone else to being your own boss, your risks increase along with your pay. It is important for each truck driver to understand the liability that comes along with driving your own truck. All truck drivers would agree that they are the safe ones on the road but that doesn’t mean accidents don’t happen. When those accidents do happen, are you structured in a way that your personal assets will be protected from a lawsuit? Personal assets could be assets like your home or your family’s savings. The best way to protect yourself is by creating a corporation, or an LLC, separating your personal assets from those of the company.
Even if you don’t have any partners or employees, you can benefit from starting a corporation. By simply having your own business, you are going to be perceived as more credible to current and/or potential clients.
Here are a few reasons why CDL truck drivers should incorporate in Nevada.
Flexibility and Protection:
As a business owner, you can incorporate in any state, not just the state where you live. Nevada separates your personal and company assets with laws that give you more protection than in most other states. Nevada also grants you additional rights to privacy in your financial and business affairs. This is why more than 300,000 corporations or LLCs have been started in the state.
Nevada has no income or franchise tax for entities based or operating within its borders. As a driver, you can still travel outside of Nevada to conduct your business as long as you call Nevada your home. Some companies will try to mislead you to think you can form a company in Nevada and not have to pay income tax. This isn’t always true. If you have a Nevada corporation or LLC but you live in California, for instance, you are still required to pay California state income tax.
There is also no tax on corporate shares and only a small employer payroll tax. Taxes in other states can be much higher. For example, all corporations in California have to pay at least $800 per year in franchise taxes, and most companies, including those of truck drivers, pay thousands of dollars in additional income tax.
Courts on Your Side
Nevada laws and business courts minimize the time, costs and risks of commercial litigation to attract more businesses to the state. All corporations in Nevada have charging order protection. This means that a court can’t order you or your company’s manager to pay a creditor or the winner of a lawsuit.
If you’ve already incorporated in another state, you can still convert your corporation or LLC to Nevada. The processing department at Corporate Capital is familiar with the laws in all 50 states, and we can start a Nevada corporation or LLC for truck drivers quickly. You may need to register your business in the states you operate in. We offer a consulting membership, and we’ll find out where you should register.
Call us today at 855-371-0070 to get all the benefits of your own Nevada company.