Protecting Your Personal Assets

If you are in the transportation business, forming a Limited Liability Company (LLC) for your transport company can protect your personal assets while you are out on the road. If the LLC is formed and managed correctly, owners can limit their potential liability if there is a claim or lawsuit relating to their business. Only LLC assets should be at risk in a lawsuit or judgment against the business, and the personal assets of the owners should not be subject to the claim.

LLC vs. Insurance?

Many of our customers in the transportation industry purchase and carry business insurance to provide liability and other protection for their company. Whether that insurance provides coverage for specific claims relating to the business will depend on a number of factors. In light of the variety of risks that a business owner may face and the limitations on many types of insurance, we find that many of our customers form an LLC in addition to purchasing business insurance.

Which State?

Many of our customers form their LLC in the state where their company conducts the majority of its business. However, in deciding where to form a company, there are many factors to consider -- cost of formation, tax laws, and other laws governing the actions and liabilities of the LLC within each state. We can assist companies that will operate in multiple states with registration requirements in the additional jurisdictions.

Interstate Commerce

Depending on its activities, an LLC may need to qualify to do business in states other than the state where it was formed. In addition, a trucking business is usually required to have a process agent in each state in which it is authorized to operate and in states through which it transports cargo.