Dating back to the 1920’s, the truck industry has been and continues to be vital to the economic growth of the United States. Trucks were first used extensively by the military during World War I. During the 1940’s and 50’s, the industry accelerated growth due the construction of the Interstate Highway System. Throughout the later part of the century trucking became central to American commerce dominating the freight and hauling industries.
Today, the United States economy depends on trucks to deliver nearly 70 percent of all freight transported annually in the U.S., accounting for $671 billion worth of manufactured and retail goods transported by truck in the U.S. alone. Although truck driving is a highly important industry, it is also a very dangerous one. Truck driving is consistently ranked as one of the most dangerous jobs in America, as drivers are subjected to the perils of the open road. Due to the high profitability and high risk, it is a good idea for truck drivers to protect their personal assets.
Protecting your personal assets from liability in an accident is easily done through incorporation or formation of an LLC. Choosing the best entity depends on the circumstances involved such as the nature of your business and the number of owners and members. An LLC can offer you more freedom in how you manage your business. An LLC does not require the same formalities as a corporation and has certain tax advantages. A Corporation, by comparison, is taxed as a separate entity and may have an unlimited number of shareholders. Whether you choose to form an LLC or a corporation, both entities allow you to protect your personal assets, keeping them separate from your business.
When deciding where to form a company, there are many factors to consider, such as the cost of formation, tax laws, and other laws governing the actions and liabilities of the LLC or corporation within each state. In addition, consideration should be given to whether or not your business will operate in other states. Learn more about these considerations and the advantages of forming an LLC or a corporation HERE.