The next step after developing a business plan for your new trucking company is to decide what business entity you want to form. There are two roads you can go down when forming your trucking business entity: Sole Proprietorship and Limited Liability Company (LLC). If you’re still confused on which road to take in the trucking industry, this blog has the answers you need.
This is a very common business structure as it is the easiest to form and create. Under this structure, the sole proprietor owns the business himself. All the profits and losses from the business are treated as income and losses of the owner on the owner’s income tax return. The biggest concern of a sole proprietorship is liability. If there is a lawsuit filed against a sole proprietorship, it is essentially being filed against the owner and not the business, and the owner is then liable for the lawsuit.
If this is the business entity you choose, here are some factors to keep in mind: