Business Registration?

[Kephus]

Hi Everyone,

First off I want to say thanks to everyone for posting all the good information. I've been starting to look at the expediting business as a newbie - not sure if I will ever get into it, but do find all the information posted here very informative.

Seeing that I am a newbie this question may sound extremely simple. Do owner operators of cargo vans or straight trucks register themselves as small businesses? For insurance purposes, are most cargo vans insured under private insurance, or do drivers get commercial insurance?

 

[pjjjjj]

I see that no one has answered you yet (how rude!!!), and I probably shouldn't answer either, seeing as how I am in Canada and have different laws/rules/governments, etc. But here, we must register as a biz, even if we are just signing on with a carrier, in order to get our GST credits back.
I would think if you are not registered as a biz, you would not be able to claim some things on your tax returns which you may be entitled to, otherwise.
For insurance, if you are signed on with a carrier, usually their insurance will cover you under a commercial policy.
If not, many do insure themselves under their own personal policies, however, that may some day turn around to bite you in the rear. If some day you do definitely require commercial insurance, they look for experience, and usually personal auto coverage doesn't cut it. They want experience under a commercial policy, usually driving the same type of vehicle as what you want to insure. This is not to mention the potential liability you could be faced with if you were to have a cargo loss, I doubt if your personal insurer would want to cover those kinds of losses. Or even if you hurt someone with your vehicle while loaded and obviously doing business.
Hope this helps somewhat. Hopefully some US people will chime in too.

 

[chefdennis]

Ok, there are several ways to set up your business. And you don'thave to do any of them. But I have to believe most do. The tax advantages and the seperation of business and your personal holding just make sense to do so.

A bad accident in your van could wipe you out personally while if you are incroporated, you have that speration that will limit your personal exposure.

I wouldn't try to tell you which why to do this at all. Add the type of business structure that is right for YOU, to your research, lol it is just one of many things you should figure out.

Also, when the time comes, talk to a good accountant and tax lawyer, they can steer you in the right direction.

 

[BillChaffey]

If you go to "Expedite:Now.com" you will find in the "The Business side" a ton of information and the differences in the type of Corporations available to you.