One of the first decisions you make when forming a trucking company is the Corporation Filing your business will take. Will it be a Limited Liability Company, Sole Proprietorship, or Corporation? The answer depends on your preferences, goal, and future growth of your business. Most business owners form corporations because it protects them against financial and legal liabilities. This is because a corporation helps separate owner’s assets and bank accounts from business assets. Corporations Filing provides businesses with many advantages, but it also has its disadvantages. These include expensive corporation filing fees, loss of business control, double taxation if it is a C corporation, and many more. Carefully analyzing the needs of your business will help you decide whether to incorporate it or not. Read on as Global Multi Services discuss the cons of corporation filing in greater detail below.

Extensive Formalities and structure

Corporations are required by law to have a set of standard formalities that governs them. These include keeping accurate records, having a board of directors, holding regular meetings, operate as a separate entity, following the company’s bylaws, and many more. These ensure the company is legally distinct, maintains its status, and runs smoothly.

Expensive Corporation Filing

One of the downsides that come with corporation filing is the expenses. They are one of the most expensive business structures to set up. Corporations are a complex structure, and many filing fees are associated with their formation. For example, in some states, Non-profits corporations must file a separate state tax exemption status to the Internal Revenue Services and pay a registration fee every year. Many states also impose an ongoing fee and an annual report fee on corporations. These fees can be costly for many small businesses.

Corporation Filing Lengthy Application Process

The application process for corporation filing is very lengthy due to extensive paperwork. Filing your article of incorporation with the Secretary of State is easy, but the overall incorporation process is often time-consuming. To establish a corporation, you need to keep details of the organization and its ownership. These include the corporation’s bylaws, board of directors, financial transactions, officers, corporation articles, meetings, shareholders, and other activities. Each state also has its corporate filing requirements and record keeping guidelines for incorporated businesses. Therefore, you need to do research on your state regulations or seek the advice of an attorney to remain in good standing with the state and law.

Double Taxation

Corporations like C-corporation face double taxation. This means the business is taxed as a separate entity and the shareholders are also taxed based on the percentage of profit they earned. The only way to avoid double taxation is by operating as a limited liability company or S-corporation.

Distinct Legal Entity

Corporation Filing takes away the control you have over your business. It is a distinct legal entity governed by a board of directors. Corporations also have federal and state rules stating who can serve on a board of directors. The board of directors can vote in other board members and vote out members. They can also take over the business leaving the founder with no say.


The trucking industry is one of the highly regulated industries in the United States. Each state also has its permit and license. The regulations are given to maintain state roads and allow motor carriers operating in and across the states to stay in compliance. For example, motor carriers traveling on the public highways of New York State are required to obtain New York HUT. Excluding toll-paid portions of the New York State Thruway.

What is New York HUT?

This is a tax levied on commercial motor carriers operating across New York State Highways. The tax is calculated based on the weight and distance covered by motor carriers on New York public highways. Commercial vehicles subjected to New York HUT Permit must also keep records of the miles they travel each day in New York. The tax collected is contributed to the New York State’s Highway and Bridge Trust Fund to help maintain the state road infrastructure.

How To Apply For New York HUT

Qualified motor carriers should apply to the New York State Department of Taxation and Finance for a certificate of registration and decal. After approval, the decal must be affixed near the license plate of the motor carrier. The application can be done under the following categories.

HUT Certificate of Registration

This registration is for motor carriers and other private vehicles with a Gross Weight of 18,000 pounds and more.

Automotive Fuel Carrier (AFC) Certificate of Registration

This registration is for motor carriers transporting automotive fuel.

Temporary New York HUT Permits

This registration is for motor carriers that occasionally travel across New York. They have the option to purchase a trip certificate of registration that allows them to operate in New York without having to register, obtain a decal, or file HUT tax returns. Motor carriers are allowed to apply for the temporary permit ten times in a calendar year.

New York HUT Filing

New York HUT Filing can be processed in the following ways:

Gross Weight

This method is divided into two: the straight-line option and the heaviest weight option. The straight-line option allows motor carriers to compute their tax based on the taxable miles for each vehicle they operated during the period. The heaviest weight option allows the trucking company to record vehicles in their fleet on each line that match the same configuration of weight.

Unloaded Weight

The unloaded weight method is used during the reporting period for motor carriers with an unloaded weight of more than 8,000 pounds. It is also used for tractors with an unloaded weight of more than 4,000 pounds.

New York HUT Fines

New York State imposes the following penalties on motor carriers that stay in non-compliance with the state New York HUT Permits regulations.

  • Motor carriers that fail to file their New York HUT return will be charged an additional 10% of the due tax. They are also charged 1% for each additional month.
  • Motor carriers traveling across New York State without permits and decal are subject to a ticket and fine of up to $2,000 for the first offense.


When it comes to the trucking industry, safety and permits such as Oregon Permit are paramount. According to research, the industry has one of the highest numbers of accidents and fatalities every year in the United States.  The truck drivers long working hours often make them lethargic while driving, which is considered unsafe. To improve safety and compliance, truck drivers need to follow strict regulations on the road. One mistake can cause severe damage to the driver, other road users, and truck. But these can be averted by adhering religiously to safety regulations, making the road a better and safer place for the drivers and other people on the road. Read on as Global Multi Services takes us through how truck drivers Keep their Compliance, Safety, Accountability Low.  

Pre-Trip and Post-Trip Inspection

 One of the best ways to keep your Compliance, Safety, and Accountability low is by performing pre-trip and post-trip inspections. Inspect every truck part to ensures it is in good condition. It is essential to use tools that document inspection accuracy. Drivers are the most vital asset in the trucking industry. Therefore, they must rest and be healthy before driving. According to the Department of Transportation, many truck accidents happen due to inclement weather. Hence drivers need to check the weather condition to stay safe. 

Avoid Distracted Driving 

 According to the Federal Motor Carrier Safety Administration, distraction while driving is one of the major causes of accidents for truck drivers. These occur when drivers take their eyes off the road or their hands off the steering wheel. Distractions can be caused by eating or chit-chatting, staring at a billboard or group of people, and many more. But the most common form of distracted driving is using the cellphone while driving. 

Obtain Oregon Permit and Other Documents

 Motor carriers must obtain all mandatory permits and license to stay in compliance. Each state also has laid down regulations and permits required to travel through them. Violating those regulations can lead to hefty fines and penalties. For example, the state of Oregon requires trucking companies to obtain their Oregon Truck Permit to operate commercially in Oregon. Obtaining the Oregon PUC Permit can sometimes be tedious that can cause delays in business. But with the help of Global Multi-Services, you will get your Oregon Permits within a short time and without stress. 

Avoid Safety Hazard

 Truck drivers must be proactive to safety hazards and their environment. These include looking out for sharp objects, animals, potholes, and other vehicles on the road. During bad weather, drivers can stop driving until the view is clear if they can’t see clearly. They should also ensure their windshield and lighting system are working perfectly. 

Have Proper Rest and Break 

 Truck drivers are mandatory to take break and rest when they feel sleepy or impaired while driving. These ensure they don’t doze off while driving and also help regain their strength. Trucking companies should encourage their drivers to prioritize their safety and the safety of others by taking out time, especially, at night to rest well.