Many factors have to be considered before I suggest you any opinion on these two. But first of all, we have to know the basic difference between An LLC and A Corporation and list out there for and against.

What is an LLC?

An LLC is an abbreviated form for a Limited Liability Company. As the name suggests, LLC sunders your assets from your business assets. So in any worst-case scenario if you suffer some loss in your business and get under debt then only the money that you have invested in your business will be used to pay off and your assets like your home, your vehicles, and other personal estates or assets will remain sound.

What is a Corporation?

It’s a legal organization that is completely discrete from you if you are one of its owners. To form a corporation you need other members, as you can not be the individual owner, and these owners or members, along with you, will be the common shareholders. One good aspect of forming a corporation is that you or any of its members will not be personally at fault for any of its loss or debts. And on the other hand, the shareholders will have access to dividends and stock inflation.

LLC Vs Corporation

There are significant differences between LLCs and Corporations, and I will be going to discuss some of those in-depth and others, that are not much important for trucking businesses, with just an overview.

Aspects of ownership in LLC and Corporation

Ownership is one of the most important things in a business, largely if I talk about trucking businesses. This one aspect can either smooth out your business or severely entangle it. Well in LLCs the owner have the liberty to give out the profit shares among its members, regardless of the financial endowment of the members to the company. So, this adds an advantage while organizing the company’s ownership.

In the case of forming a corporation, there is no individual owner but shareholders of the company. And gains and losses of the company are dispensed equally among its members. Hence there is no single sheep to be butchered when the company faces any losses.

Different Taxations for LLCs and Corporations

In the trucking business, there are a lot of expenses to deal with like permits, truck maintenance, and many more. So, what kind of taxes you are going to pay plays a key role in making profits.

I’ll be honest that when it comes to filing taxes, LLCs taxation is easier than Corporation taxation. But there are different tax advantages that these two provide.

I am estimating that many of you are unknown to the technical terms of taxation, plus it would be a lot of hassle for you to go through all those technicalities. So, I am going to cut the jargon and describe it in Lehman’s terms.

When it comes to taxation in LLCs, the profits directly go to the owner or owners, in case you have many members, and gains and losses are not announced on business levels but individual tax returns.

On the other hand, in corporations, there is a concept called Double jeopardy. Because corporate are treated as individual legal entities, they pay taxes at many levels such as taxes on profits, corporate tax, and they also pay taxes on dividends they share with the shareholders. Along with that, dividends are taxed twice, as they are not tax-deduct able like bonuses and salaries. And this leads to Double jeopardy.

Legal entity and Tax entity?

As I am taking you through taxation, legal entity and Tax entity is another widely asked query. So what’s the difference between a legal entity and a tax entity? How IRS looks at your business is termed as a Tax entity, and accordingly, you are taxed by IRS. In other words, when you are an LLC, registered under your State, you won’t be taxed by IRS as they don’t recognize the same. And for taxation, you might get considered as an s-corporation, c-corporation, or sole-proprietor. All and all, Legal entities are ordered with your state, and Tax entities are ordered with IRS. But to get an Employer Identification Number(EIN), you need to individually register your taxation structure to the IRS.  

Conclusion

I think I have made enough suggestions, for you, to end the dilemma of choosing between an LLC or a corporation. And if I suggest you, it solely depends upon the size of your trucking company and your organizing capacity that will help you choose between an LLC or a corporation. Although, a corporation requires a lot of staff, annual meetings, big taxation, and other things.

In case you are not satisfied with my suggestions, given above, I would recommend you visit our website Global Multi Services.

As we have a highly experienced team of experts who would be more than happy to help you in resolving all your queries and they will also mitigate for you the trouble of filling the paperwork of the same.


Global Multi Services is a one-stop shop for all of your trucking needs. We’ve spent years developing and executing effective plans and strategies that have helped our customers increase their income. We provide a wide range of trucking services to keep your fleet running smoothly.

We handle all kinds of trucking Permits.

  1. 48 states IRP renewal plates
  2. MC Authority/ICC
  3. New York HUT
  4. US DOT
  5. UCR (Unified Carrier Registration)
  6. Oregon (PUC)
  7. New Mexico WDT
  8. Kentucky Permit (KYU)

MC Authority

MC or Motor Carrier authority is permission that trucking company should take from FMCSA for transporting goods on public roads. If your company work as a for-hire business, transport federally controlled goods, or transport passengers in interstate commerce, you must have a DOT number and an MC number.

Since obtaining MC authority is not an easy task, our experts will help you get the MC authority promptly.

US DOT Number

The USDOT Number serves as a unique identifier while gathering and tracking safety information of a company, agency or operator obtained during audits, compliance audits, accident investigations, and inspection.

Like MC authority, US Dot number is not easy to obtain as one has to go through a lot of paperwork.  Our experts will help you obtain the Dot number hassle-free.

IFTA Fuel Tax Permit:

The states of United States and the Canadian province have an agreement which is known to be IFTA fuel tax permit. It includes:

  1. IFTA Account Setup
  2. 2290 Filing (HVUT)
  3. IFTA Compliance
  4. Additional Decals
  5. IFTA Quarterly Filing

Like other permits and licenses, Global Multi Services will help you in getting IFTA fuel tax permit as well without any worry. Our expert team will guide you in every step and help you getting the permit hassle free.


There are various business structure options available for investors who are investing in a new trucking company. The different options available are partnership, corporations, sole proprietorship, and limited liability company (LLC). Most owners prefer to register as a corporation or limited liability company (LLC) to step into the trucking business and make it successful.

Limited Liability Corporation (LLC)

It is a mixture of a sole proprietorship, partnership, and organization. Based on a personal tax return, the organization members file taxes listing the profits and losses of the business. After enrolling as a limited liability company (LLC), businesses can also tax themselves like corporations.

LLCs do not have annual business requirements, nor they have shareholders. Thus they can start LLC as an individual owner.

IRS Form 2553

This form is employed in the election with authority to own your transportation business, like trucking business treated as an S corporation for tax functions whenever profits and losses are circulated through to the shareholders who announce it on individual tax returns.

If you don’t go for this step, the IRS will assume that it’s a C corporation and you to pay the total corporate income tax.

Bylaws

Limited Liability Corporation needs to go according to the total of 27 articles and ten annexures consisting of the rules and regulations, as of 28 November 2019

Minutes of Meeting

They are documents assembled that need to be prepared during every meeting of the corporation, which contains essential information such as people present in the forum, forming, questions raised, solutions are given to resolve the problems.

Corporation Kit

It functions as a binder containing all the company’s essential documents, starting from the minutes of the meeting to the corporate seal, which has all the financial information along with by-laws and articles of the association.

Experts at Global multi-services will record all the details of minutes of meeting traditionally by reducing your workload. Professionals will rapidly and skill-fully process the paperwork for LLC filing

Experienced experts are ready to walk the extra mile to help you file your new business to reach newer heights.


Global Multi Services hire all truck-related services to legally operate your carriers and save yourself from hefty fines by making your easy.

What Is International Fuel Tax Agreement (IFTA) Returns?

 Being aware of the rules and regulations is very important while making decisions, especially for drivers and carriers. One such principle limitation is the International Fuel Tax Agreement (IFTA), a collaborative deal between the 48 states of the United States and ten provinces of Canada. It allows inter- jurisdictional reporting for the fuel which vehicles consume within a single fuel tax license.

It is mainly designed to maintain a single fuel license within the state carriers. For each possessor of the permit, there will be a single administering base jurisdiction. However, Canadian territories, Alaska and Hawaii, do not participate in this. Operating carrier with IFTA also gets an IFTA license, and for every vehicle passed, there will be two decals imprinted on it. To figure out the refund, the carrier has to file a quarterly fuel tax report. This also leads to redistribution of the collected taxes from different which are due.

Experts at Global Multi Services are best at processing IFTA permits like:-

  • MONTHLY OREGON FILING
  • QUARTERLY NEW YORK FILING HUT
  • QUARTERLY INTERNATIONAL FUEL TAX AGREEMENT
  • NEW MEXICO WEIGHT DISTANCE TAX
  • KENTUCKY HIGHWAYS USE(KYU) TAX

Who gets Qualified for IFTA?

Tax is needed for only two vehicles which are

  • Having weight more than 26,000 lbs when combined with Gross vehicle weight.
  • Having two axles and registered GVW weight over 26,000 lbs.
  • Having three axles or more irrespective of the weight.

Experts at Global multi-services quickly provide you with-

Quarterly IFTA Filing in which every motor carrier has to submit monthly driven miles to BOE so that they charge accordingly for every vehicle.

New Mexico Weight Distance Tax is implemented on owners, intrastate carriers with a GVW of 26,000 lbs or more.

Kentucky Highways Use Tax is (KYU) an organization calculated based on the distance covered by your vehicles traveled that calculated in Kentucky for vehicles with GVW 60,000 lbs more.

Experts at Global Multi Services will help you calculate the miles completed and distance travel within the state. Thus, getting truck permits is an easy task for them and will help you grow your business multi-services.


Introduction: Tax return (Form 2290) for the payment of taxes payable on-highway vehicles used for a given duration can be used by heavy-duty vehicles. This duration is the time for the transport of a taxable gross weight of 55,000 pounds or more, you will use the form to classify and pay taxes owed on a truck where a suspension declaration on another Form 2290 has been completed (if that vehicle later exceeded the 55,000-pound limit).

The cumulative state highway levy on such heavy motor vehicles (HVUT) is the Heavy Vehicle Use Charge. The key vehicles taxed for their usage on roads, though more precisely on the highways, are semi-trucks and truck tractors, and buses. After completing the questionnaire and paying all fees, you can return a stamped Schedule 1(Form 2290) to the truck owner. The truck is licensed at a local DMV through payment and declaration. The IRS firmly recommends that all truck owners that need the electronic completion of one of these types do so. Type 2290 e-filing is super realistic and easy. Although if you report on 25 or more cars, you must register electronically, please note that.

Type 2290 Basics for e-filing: You have to have all the kilo meters and weight of the journeys packed. Please ensure that the supporting documentation is valid with these comments if you have any discount or suspension allegations. All this material is submitted considerably faster to the IRS as it is filed electronically, as it will be simpler to decipher what records include the refund, etc.

E-file Type 2290 Advantages

Saved personal money – e-filing increases tax productivity and aims you save your capital, e.g., postal and tax reporting period costs.

Error mitigation: E-filing decreases scheduling and production errors, significantly leading to efficient and seamless work.

Convenience: The return can be registered from anywhere and anywhere on a regular device or on-the-go laptop.

Fastness: Schedule 1 is nearly accessible as soon as the IRS recognizes 2290 type submission from the transmitters of e-files. Security – you can email a correction to mileage and weight even though you made an error in the context of the 2290 e-filed. This also applies to e-filing correction of VIN and the provision in minutes of a corrected Schedule 1.

Filing form 2290 is a completely clear operation. You require just the following details to do this:

  1. The amount of the car.
  2. The vehicle’s gross weight or one of the vehicles mentioned helps figure out which group it belongs to.
  3. Identity number of the boss. The combination of your name and your EIN is called your special taxpayer ID for safety purposes. Two weeks before e-filing, EIN must be purchased.
  4. Company’s name and address.

Conclusion: In above with Global Multi Services, you can see Schedule 1 is valid for 2013-14 from 1 July 2013; the deadline for submission to IRS Form 2290 is 31 August 2013. The fiscal cycle begins on 1 July of this year and concludes on 30 June of the next year.


Introduction: Type 2290 of IRS is not the easiest form to achieve. However, it takes some time, so you must be completely assertive when you access the details. You could encounter a few impediments along the road if you e-file with incorrect calculations or false details. So before you register, double-check your job! Just wait for Schedule 1 to come in the mail when you finish; you have no issue with a matter.

But don’t worry with Global Multi Services the information you submit to the IRS will be easy and secure to its destination. Your data is kept secure in the database and is included in the account like all other records. Hard copies are much tougher to trace and can be destroyed in the process.

  • E-filing is simple to use interfaces as well. Both records and information guidelines are accessible, and real instructions are often clicked off if you are trapped. If you fill out a hard copy, you even get choices for customer truck e when you register electronically. You will also speak with officials who can accompany you every step of the way to ensure you effectively complete the 2290 form.
  • Form 2290, Heavy Truck Usage Tax must be filed on your side so that the vehicle has a total taxable weight of at least 55,000 pounds. The new submission season for type 2290 is from 1 July to 30 June. For the month in which you first utilize the public highways in the reporting era, Type 2290 filers must register. Form 2290 Tax return (IRS form 2290), charges for truck s first on the public highway, file Form 2290, between 1 July and 31 August, must be filed and tax payments paid.
  • File form 2290, for the truck s you first use on a public highway after July; the Form 2290 tax for the new reporting season would be prorated. Register Form 2290 on the last day of the month that follows the month you used the public road vehicle for the first time. Form 2290 The date for paying a tax bill in addition to a tax return for a year beginning on 1 July 2020 and finishing on 30 June 2021 would usually refer to the 2290 tax form.

Enhance the 2290 application phase by sending your 2290 return form online. You don’t even have one truck at the nearby IRS office file form 2290. Typically, you receive an electronic document of the IRS stamped in Schedule 1 within minutes of filing electronically when you register form 2290 (IRS HVUT 2290).

Conclusion: With Global Multi Services, you can print Schedules 1 at home or hold an electronic Schedule 1 sheet without access to an IRS office to provide it to the state motor vehicle agency. Be mindful that all of them are already operating according to planned appointments and lines if you visit the IRS district office. The most easily approved IRS stamped. Table 1 is still checked, and all truckers experience the electronic form 2290 filing 1.


Introduction: The IFTA is a Canadian arrangement with the U.S. states and provinces to allow data on interstate motor carriers working in two or more member states or provinces simpler on taxation on gasoline use. IFTA’s goal is to create and retain a single Fuel Tax License definition for all your registered motor vehicles, enable it to pass across all IFTA jurisdictions and mandate that you record the fuel and mileage consumption for all IFTA member states and the provinces on a single fuel tax return per quarter.

It is used in a more than 26000 pounds or 11,797 kilograms in combination or recorded gross vehicle weight. The cars used for commercial purposes would not be treated as leisure vehicles.

You need to get fuel trip permits to fly in or through every Member authority if you apply as an IFTA or Interstate Recipient, but don’t want to register. The global multi services provides four successive days for non-statutory carriers to join and return to California without receiving a fuel license. Licensed carriers in California often have to buy a fuel trip license, to re-enter California after they depart the region if they do not have a fuel tax certificate. Before joining the state, the California Travel Authorization must be bought and done.

 

Fuel Trip licenses from California are eligible for online buying. If, for example, you are a California-based carrier not approved under IFTA and travel in Nevada (IFTA jurisdiction). You would have to buy a gasoline trip certificate for California before you head back to California.

You may be liable to a penalty, fine, or quote based on the jurisdiction rules, whether you are approaching California or moving under an IFTA jurisdiction without appropriate IFTA or inter-state permit qualifications or a fuel trip permit. You are liable to a tax if you reach California without a legitimate fuel trip permit or IFTA permits. Penalties are between $100 and $500 or higher (the penalty could be more than $500 when you pay gasoline tax). You would still have to buy a petrol journey certificate and will face potential seizures. When this happens, you cannot free the car until you pay your full obligation, plus the automobile seizure expenses.

The criteria for reporting on fuel tax in non-IFTA jurisdictions would continue to be met by carrier passengers. You must upgrade your IFTA license and order new decals from 1st December of the year. With our online facilities, you can renovate your IFTA credentials.

Once you have extended your license and charged your renewal, we will give you the one (1) California IFTA license for your enterprise. You are requested to duplicate the certificate such that each motor vehicle in your fleet includes a (1) copy.

Conclusion: For an eligible motor vehicle in your fleet, you earn two (2) decals. The outside of the passenger area of the cab must be fitted with one decal; the second stop must be positioned on the driver’s side in the same spot. Decals for all eligible engines installed in California will be obtained annually when renewed; your Interstate Consumer License must not be renewed.


Introduction: Additional state permits may be granted to carriers operating in Kentucky, New Mexico, New York, and Oregon. For each jurisdiction, the specifications and charges vary. If the filing is not filed in a reasonable time, costs and fines will be postponed; then returns must be submitted even without a mileage.

 

License for Kentucky Use Tax (KYU Number): Permanent KYU accounts shall not be renewed, and the state shall be closed. Carriers with a KYU active number must file a quarterly KYU return, even when no miles have journeyed. If KYU returns are not fileted on time, fines of up to $500 may be levied, and a bond will be required to reinstate the account.

 

Temporary KYU – $85: Used for separate journeys, collected instead of the endless number of the KYU. A temporary KYU needs no quarterly submission. This license is only for periodic trips to Kentucky; you must build a permanent Kentucky Highway Usage License account while working daily in Kentucky.

 

KYU Surety Bond – $250: A Kentucky Highway Bond must occur if a KYU license, including the inability to file a KYU fee, is canceled for some cause. The bonds could only be purchased with certified assets. The bond shall usually stay in the file for one year, and all KYU reports must be sent on time per fifth.

 

Weight Tax in New Mexico: Both commercial engines were carrying greater than 26,000 pounds in total weight. Until flying to or via New Mexico, must be recorded with the Department. Admission may be charged at the port until you have signed for a provisional WD license; however, payment at the port is not affordable unless you only fly to New Mexico once or twice a year. If NM weight distance returns are not filed in time, so fines will be levied. 

 

Although the wine industry is pending a ruling of the Supreme court (planned for this June) concerning an alcohol manufacturer residence regulation in Tennessee, claimed by some to be accessible to intergovernmental wine shipment, three changes have recently taken place on the topic of wine shipping.

 

New Mexico is one of the few states which permit wine shipment to residents of retail outsiders and outsiders. The National Association of Wine Retailers (NAWR) reports, however, that entry to customers will be cut off from a vast number of imported, hard to locate collectible wines, Israeli-made Kosher wines, or wines manufactured from wine clubs which could all be inaccessible in retail stores in New Mexico. The bill seeks to secure the deep pockets worth wholesalers of billions of dollars that seek competition security. 

 

Conclusion: New Mexico Quarterly returns must be sent immediately as the deductions are not triggered or renewed. The renewal date for NM Weight Gap is 31 December. Outsourcing by retailers that bypass current DTC prohibitions would not have a pool of tax revenue. NAWR considers that, as is the case for non-state wineries, sellers outside the country should be obligated to receive licenses, pay state taxes and submit information on the quantity of the wine delivered to New Mexico customers.


Introduction: Weight Gap Temporary NM Allowable, Received at entry port, weight & miles in New Mexico, depends on costs. New Mexico Provisional weight gap licenses can be obtained only once or twice a year in New Mexico.

New York Highway Usage Tax (NY HUT) (NYHUT): Carriers in New York that run such commercial engines weighing 18,000 lbs or more shall register and receive NYHUT tax qualifications. You will issue a license which must be carried in the automobile and a decal on all occasions before issuing a certificate of registration. Accounts shall be set up and retained through OSCAR, and tax returns shall be submitted with the State Department of Finance and Taxes, New York, every quarter.

Upon forming an NYHUT account, operators would have to pay quarterly mileage tax and though no miles traveled. If NY HUT returns are not filed, fines and interest may be generated. Per threescore years the New York HUT permit is extended, and the next deadline for renewal is 31 December 2015. If the New York business weighs more than 26,000 lbs. and performs inter-state activities, you are expected to receive an IFTA permit, so your NY Highway Tax Authorization is not an IFTA license.

NY HUT temporary, from $70: A registration tour permit for specific trips is used, and a permanent HUT license is obtained in place no quarterly filing is needed for a temporary New York HUT license. You must create a permanent New York Highway Usage Tax account if you are a traveler in NYC. This permit is only for periodic trips to New York.

Oregon Weight Mile Fee: The Oregon Transportation Division shall include an Oregon Weight and Tax Identifier or receipt from Oregon Motor Carrier Transportation, and shall be valid for all carriers traveling on public roads operating on Oregon’s roads, weighing total weight over 26 000 lbs (MCTD). If no miles have been driven, you must request a tax report. If Oregon Weight Mile returns are not filed on schedule, 10% of the tax owed is due at a late charge. There could be more fines and interest. If you are no longer in Oregon, you have to delete your Weight Mile Tax account. You are liable for making timely reports before the charge is terminated.

Oregon has to bond all potential applicants before granting permanent certificates. Bonds can be placed or posted in cash by a Surety Firm. Cash loan tax charged. The fleet size dictates the appropriate volume of the bond.

Annual permits for weight miles in Oregon are renewed on a calendar year basis. The renewal date for OR Weight Receipt is 31 December. Until certificates are renewed, accounts must remain in good standing, including the filing of all records and all taxes for the quarterly Oregon Weight Receipt.

$45 + State Fee Temporary Pass: For single trips and instead of a permanent permit, a temporary pass for the Oregon Weight Mile Fee. Quick access is used. Until service in Oregon, a provisional weight-Meile pass must be obtained.

Conclusion: An Oregon permit requires no quarterly reporting but could include a cash bond. This authorization is for casual visits to Oregon only. You must set up a permanent weight receipt account while you work in Oregon daily.