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IFTA Fuel Tax Return: Filings Trucking Companies Need To Stay Compliant In The Trucking Industry

December 22, 2021 0IFTA DecalIFTA Fuel Tax ReturnsIFTA PermitIFTA Program

The trucking industry is one of the fastest-growing and most regulated industries in the United States. Establishing a trucking company needs thorough research on how the industry works and considering various compliance obligations. Trucking companies need to obtain permits and licenses to operate across state lines. They also need quarterly and annual filings to stay in compliance. Examples of these filing are IFTA Fuel Tax Return, IRP Plate, UCR Permit, and many more. The filing is done through the Federal Motor Carrier Safety Administration and other operating bodies. Continue reading as Global Multi Services explains filing trucking companies needs to stay in compliance.

Designation Of Process Agent

Filing the BOC-3 form is mandatory for trucking companies operating in the United States. Trucking companies need to file Designation of Agents for Service of Process when applying for authority. The process agent represents the company when sued. Trucking companies must renew their BOC-3 filing every year. The filing costs between one hundred to two hundred dollars, and it’s filled annually to stay in compliance.

Unified Carrier Registration

The Unified Carrier Registration Renewal is mandatory for trucking companies engaged in interstate commerce. The renewal process is easy and provides smooth operation for commercial motor carriers with no delay. Trucking companies can complete UCR filing through the Department of Transportation in their state. The filing fee depends on the number of trucks in their fleet. Failing to apply for your UCR Renewal on time may lead to fines and penalties.

IRP Plates Registration

IRP is important for trucking companies operating across the Canadian province, the District of Columbia, and the United States except for Alaska and Hawaii. The International Registration Plan facilitates one license plates and fees collection from trucking companies engaged in interstate commerce. Trucking companies must register for IRP Plate in their base jurisdiction and pay an apportionable fee, calculated based on the miles covered in each jurisdiction. IRP has filed annually through the Department of Transportation in each jurisdiction.

IFTA Fuel Tax Return

The International Fuel Tax Agreement is an agreement between the Canadian province and the United States except for Hawaii, Alaska. IFTA establishes the concept of using a single fuel license and simplifies fuel tax collection for motor carriers operating interstate. Qualified motor carriers must register and obtain an IFTA license and two IFTA Decals in their base jurisdiction. Trucking companies must keep records of mileage covered in all participating jurisdictions and gallons of fuel purchased in each state. They must also file IFTA Fuel Tax Returns for every fiscal quarter.

The Bottom Line

Trucking companies must comply with federal, state, and local taxes to avoid penalties. They must have an IFTA account to file IFTA Fuel Tax Report. They must also report quarterly driven miles of their motor carriers to ensure the accuracy of their filed tax. Global Multi Services helps process IFTA permits and file IFTA Fuel Tax Returns.

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Corporation Filing: Types of Corporations

December 16, 2021 0Corporation Filing

A corporation is a business entity authorized by the state to act as a single entity. Corporations are best for entrepreneurs who want a formal business structure with the legal right to enter contracts, protect shareholders’ assets, sue and be sued, loan money, and pay taxes. But it involves many processes. These include Corporation filing, designation of registered agent, and many more.

The legal statute of a corporation varies from one state to another. Therefore, you need to seek the guidance of an attorney before your corporation filing. Read on as Global Multi Services takes us through the types of corporations.

What is Corporation Filing?

Corporation filing is a set of legal documents that provides name, address, business purpose, representative information, and other important information about the corporation. It is mandatory for every corporation and filed by the shareholders.

How to Start A Corporation

Starting a corporation requires filing an article of incorporation by shareholders with common stock in the corporation who are also pursuing the same goal. The board of directors governs the corporation and is elected by the shareholders. The number of shares each shareholder owns determines its percentage in the company.

Types of Corporations

There are different types of corporations which includes the following:

C-Corporation

C-corporation is a business entity with unlimited numbers of shareholders. They raise capital by selling shares, making it a common entity for many large companies. These business entities are subjected to a double taxation situation. That means the shareholders are taxed individually and on the dividends received from the company.

C-corporations protect the shareholder’s liability from business debt and litigation. The shares in the corporation can easily be bought and sold. The percentage of ownership is also divided based on shares owned by the shareholder.

Closed-Corporation

A closed corporation is a private or family company where shareholders are small and closely associated with the business. The shareholder asset is protected, and the company also experiences greater flexibility in operations.

S-Corporation

S-corporation is a business entity with limited shareholders and avoids double taxation. The corporation’s income is passed directly to the shareholders without paying federal corporate taxes if it meets the requirements of a specific internal revenue code.

That means the shareholders are taxed: instead of taxing the company as a separate entity. To qualify as an S corporation, the corporation must meet specific requirements. These includes not having more than a hundred shareholders, must be a citizen, not having partnerships, and many more.

Non-Profit Corporation

A non-profit corporation is a business entity established for religious, educational, charitable, or political purposes. They often provide public benefit rather than personal profit and do not pay federal and state taxes.

The members of this corporation cannot distribute profits but are allowed to pay wages or compensation for service rendered. Requirements for establishing a non-profit corporation vary from one state to another.

B-Corporation

B-corporation is structured to benefit society by meeting the highest standards in legal accountability, public transparency, social and environmental performance. The corporation redefines success in business by providing a more sustainable and inclusive economy. These reduce poverty, inequality while promoting a healthier environment.

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LLC Registration: What You Need To Know

December 15, 2021 0LLC FilingLLC Registration

The first decision to make before starting a new business is to choose an entity depending on how you want to run your business. Generally, most entrepreneurs either register as a corporation or process LLC Registration. Limited liability companies protect personal assets, provide ease of operation and tax flexibility. Read on as Global Multi Services takes us through what you need to know about LLC Registration.

WHAT IS A LIMITED LIABILITY COMPANY?

Limited Liability Company is a business entity where the members are not liable for the company’s debt or liabilities. It combines the features of a corporation, partnership, or sole proprietorship. The members file taxes, listing the profits and losses of the business on their tax returns.

LLC Registration requirements vary from one state to another, and anyone can be a member of the business entity. These include foreigners, other limited liability companies, corporations, and many more. LLC provides a more formal partnership, more flexibility, and protection. It is also easy to establish when compared to other entities.

HOW TO ESTABLISH A LIMITED LIABILITY COMPANY

Limited Liability Company is created by choosing a name, designating a registered agent, and filing articles of organization in your base state. The articles of organization contain the name and address of all the members, business statement of purpose in the base state, the right, duties, and other obligations of each member of the limited liability company.

ADVANTAGES Of LLC REGISTRATION

Tax Flexibility

Limited liability companies’ members choose how they want to be taxed. They are taxed like a corporation, a partnership, or a sole proprietorship. But most tax option s similar to a sole proprietorship. That means most of them file taxes listing the profits and losses on their tax returns. Many limited liability companies do not pay corporate tax. These help them to avoid double taxation.

Simple To Set Up

Limited liability companies are easy to set up compared to other business entities. They are generally under state law, and their requirements depend on the state it is being established. They also take less paperwork and are simple to manage. While some states require filing articles of organization with the Secretary of State in person and drafting of Operating Agreements, other states allow online filling.

DISADVANTAGES OF LLC REGISTRATION

Self-Employment Tax

Limited liability companies pay self-employment tax, and these taxes can sometimes be more than taxes paid by a corporation. The self-employment tax includes Social Security tax, medical tax, and many more.

Automatic Dissolution

Other members of a limited liability company’s liability are protected if one of them fails to meet its legal obligations. However, the automatic dissolution of the limited liability company gives creditors leverage to go after members. Death or withdrawal of a member without any succession can affect their operating agreement and structure. These can also lead to automatic dissolution.

Different State Law

The difference in state requirements and laws governing the establishment and operations of a limited liability company can affect its operation in multiple states. It can also lead to additional documentation and paperwork across different states.

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