People planning to embark on a new trucking company may overwhelm seeing various business structure options available. These options include sole proprietorship, partnership, corporations, and limited liability company (LLC). However, when it company to the trucking business, most owners prefer to register as a corporation or LLC.
If you are also devising to file your truck company as one of these entities, Global Multi Services can reduce your workload. Our professionals quickly and meticulously process the paperwork for corporation or LLC filing.
By registering your company as a corporation, you can separate your personal assets from the debts incurred by the business.
For tax purposes, you will pay according to your business profits. Besides, you can also take on an unlimited number of shareholders who will share the profits of the company. Sharing dividends often creates heavy tax benefits for corporations. This approach will also help you receive funding from investors.
Below are some of the further options of this traditional structure to help you file for the exact kind of corporation.
- C-Corporations – Profits are taxed separately from owners.
- S-Corporations – Typically not subject to income taxes. Instead, profits and losses are passed through to the shareholders who report it on individual tax returns.
- Professional Corporations – Experts in a common field come together for this type of corporation, better thought of as a sub-category. A degree of liability often rests upon the owners for certain losses brought about by professional actions.
- Non-Profit Corporations – Typically tax-exempt on all funding. This is the route of setting up a business for education, or for philanthropy, or even for the community.
Limited Liability Corporation (LLC)
LLC is a combination of sole proprietorship, corporation, and partnership. The members of the organization file taxes listing the profits and losses of the business on the personal tax return. By registering as an LLC, businesses can also tax themselves like a corporation.
Besides, you can also start an LLC as an individual owner. Neither LLCs have annual business requirements nor they have shareholders.
IRS Form 2553 is used to make an election with the Internal Revenue Service to have your business entity treated as an S corporation for tax purposes. The IRS will assume that it’s a C corporation if you don’t take this step, and your business would then be obligated to pay a corporate income tax on its net taxable income for the year.
You should establish your business entity in the state where the company will conduct the bulk of its business before you make the election. If your company meets the eligibility criteria for an S corporation and you’ve decided that you want to elect that status, you must prepare and file Form 2553, “Election by a Small Business Corporation,” with the IRS. Eligibility criteria include:
- It is a domestic corporation.
- It has no more than 100 qualifying shareholders.
- It has only one class of stock.
- It’s not ineligible to be a corporation.
Statement of Information
Statement of Information is akin to annual reports published by public entities/corporations. Statement of Information contains the information related to the location of the business, registered agent of the business, officers, and management involved in a small business. Both LLC and Corporation need to publish Statement of Information only if the state in which the business is operating, demands to do so.
If you are operating an LLC in the USA, then you might require an operating agreement. It is a document that contains all the functional information related to the LLC. It contains financial information, distribution of profits and losses, etc.
Minutes of Meeting
Minutes of the meeting are a record of documents that needs to be prepared during every meeting of the corporation. It contains vital information such as the date of the meeting, people available in the meeting, issues raised, solutions given to resolve the issues, etc. Although minutes of the meeting is useful for LLC as well, they are not bound by the state law to maintain any such record.
Our experts can record all the details for you in a standard manner. Connect with us for more help.
As of 28 November 2019, there is a total of 27 articles and 10 annexures consisting of the rules and regulations that a corporation or LLC needs to abide by.
Non-compliance with these laws will be considered as an offense and penalty or imprisonment or both can be levied on the offender.
Corporation Kit functions as a binder which contains all the important documents of the company ranging from minutes of the meeting to corporate seal. It contains all the financial records of the corporation or LLC along with the bylaws and article of association.
Our experts are adept at handling everything required for corporation or LLC filing. We will go the extra mile to help you file your new business leveraging our profound expertise.