6 Reasons Why A Corporation Can Protect Your Personal Assets, Increase Profits and Reduce Your Tax Burden
Independent Truckers enjoy benefits of self employment:
No boss.... Opportunity for profit .... Flexible hours ...Potential for lower taxes... Casual dress....
...Lifestyle choices that many salaried employees can only dream about.....
However, Independence also involves risk.
You do not want to lose your home, retirement savings and day-to-day livelihood if you are involved in a major accident (or lawsuit) that results in financial damages that are larger than your insurance coverage.
To help our Owner-Operator clients become more informed about forming the "right" business structures for their trucks , Inc. Plan (USA) has consulted with experienced professionals to develop an effective set of strategies that can reduce personal liability (and taxes) in a legal manner.
As a result, we have identified 6 major reasons for Truckers to establish Corporations (or Limited Liability Companies) to improve their business activities:
1. The corporate structure provides a protective wall that shields the Trucker's personal assets if his corporation becomes the target of a lawsuit that is related to his business activities. The corporation owner's private property cannot normally be confiscated to satisfy a legal judgement against his (or her) corporation.
2. The incorporated Trucker can operate out of his (or her) personal residence with valuable tax deductions. This "Home Office" arrangement can create business deductions that reduce the amount of income taxes that are owed to Federal and Local tax authorities.
3. A sound corporate structure provides valuable tax deductions for health insurance, larger pension benefits, telephone, travel, entertainment and other legitimate expenses that reduce the Trucker's tax bill.
4. With a corporation, the Trucker can frequently increase credit lines and attract new investors to his venture. The corporation owner is now the President of a company that is properly established to generate respect (and increase credit availability) from the people who count: Suppliers, customers, bankers and companies that lease equipment.
In addition, the process of finding more capital from outside investors is greatly simplified
in a corporate framework.
5. If the Trucker performs work for a small number of customers, the corporation can prevent him (or her) from being treated as a company employee for tax purposes. This is a very important distinction because when the trucker is incorporated, his clients are not generally obligated to withold the income (and FICA) taxes that are applied to employee wages.
6. The corporation structure normally reduces the Trucker's business insurance and liability costs. Remember, if your personal assets are protected from your company's lawsuits, you have fewer assets to insure and lower premiums to pay.
Inc Plan (USA)'s primary goal is to provide you with the "corporate tools" that will help protect your personal assets, improve the management of your company and help save on taxes.
Please call Inc. Plan (USA)'s friendly staff at (800) 462-4633 or
Click Here to fill out an online incorporation application.
