My husband and I are starting a Dump Truck company. He will be the driver of our sole truck. Should we set up as an LLC ?
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My husband and I are starting a Dump Truck company. He will be the driver of our sole truck. Should we set up as an LLC ?
dump truck owner operator. we would both like to be listed on the company but
with an llc are afraid of running into double taxation
Asked on March 10, 2016 under Business Law, North Carolina
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
You definitely should set up as an LLC, for two reasons: first and foremost, to protect your personal assets (e.g. home, bank accounts, etc.) and yourselves from any debts of or judgments against the company; and second, while you should confirm this with your tax preparer, generally, having a separate LLC makes it easier to deduct business expenses on taxes.
As to taxes: an LLC can be set up as a pass-through entity, which means that there is no double taxation: the LLC's profit and/or loss "drops" or "passes" through the LLC directly to your own tax returns. You elect partnership, not corporate, tax treatment when you create the LLC.
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