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.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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