One of the perks of driving with Dispatch is being your own boss. Whether you’ve officially registered as a business owner or not, this is a fact. But what are the benefits of creating an LLC as a driver? Find out the four reasons you should create an LLC.
One of the perks of driving with Dispatch is being your own boss. Whether you’ve officially registered as a business owner or not, this is a fact. But what are the benefits of creating an LLC as a driver? Read on to see for yourself.
The most significant benefit to you as an independent contractor driver is liability protection. Establishing an LLC keeps your personal assets separate from your business. It allows you to keep your personal bank account and house safe from creditors if you get sued or end up in debt. It’ll also protect your personal assets in case you have an employee or business partner sued for negligence. That case would still be negative for your business, but it won’t affect your personal assets.
As an LLC, you’re automatically seen as a sole proprietor or partnership, depending how many owners there are. That means you’re able to take advantage of “pass-through” taxation, allowing you to only pay taxes from your personal income tax returns and avoid the double taxation route most corporations have to deal with in corporate taxes. You’ll also have the option to file as a S-Corp, which could allow you to pay less in taxes than a sole proprietorship if eligible. Safe to say, having an LLC can save you some money when it comes to tax time.
LLC’s allow you to structure your business how you see fit, in ownership and management. There are no rules on how many owners or shareholders you can have when you have an LLC, so if you and your friends want to start a trucking company together, as an LLC you can do that. You also don’t have restrictions on who can be a shareholder. In addition to no ownership restrictions, there aren’t management restrictions either. As the owner, you can decide whether you want to be in charge of managing your fleet or you could hire someone else for that task. Lastly, LLC’s aren’t required to have a board of directors, making you the sole decision maker. Choosing an LLC gives you the freedom you’re looking for as an independent contractor driver.
Filing an LLC gives you a level of credibility that’s immediate. It shows customers you take your business seriously enough that you’ve made it official with the government. A driver with an LLC can garner higher respect than someone who is only a sole proprietor. It also gives your drivers more credibility out on the road because they’re representing a certified company rather than just driving for a person they know. Not only does it give you and your drivers credibility with other businesses, it also gives you credibility when trying to bring on new drivers with your company. Sounds like a win for everyone!
Getting started with an LLC does have its costs, so Dispatch is partnering with ZenBusiness to provide you with resources to make starting your LLC fast and easy. You’ll even receive a discount on your LLC by signing up through Dispatch.
If you already have an LLC and want to get started with Dispatch, sign up on our website!