Forming a Company – 3 of 5 in Starting a Logistics Operation

Forming a Company – 3 of 5 in Starting a Logistics Operation

Companies that plan revenue opportunities that may exceed a million dollars in annual should consult an attorney,  and  a competent Certified Public Accountant (CPA).  A corporate structure is a must for motor carrier (trucking) from medium and up. There are numerous classification of corporation, so an attorney or/and CPA should be consulted.  Contracts of any kind is an agreement between two (2) parties, and a breach of contract may have dire consequence.

Once you know that you are ready to move forward through the Secretary of State, select a “Fictitious Name”, which is the official name of your business, and a “DBA”, Doing Business As. Create a positive presence, promote your services on the social media, i.e. Twitter, Facebook. your business.

You must contact the Internal Revenue Service “IRS” for your “Federal Identification Number”  for assistance in selecting the type of business you will own, and the pros and cons of each for filing your business and personal taxes.  They range from a Corporation…Partnership…Limited Liability “LLC”… S or C Corp.

The broker and carrier business can be risky when you factor in the moving a load.  The broker agrees to pay the carrier an agreed Dollar ($)  amount for moving a load with a small profit margin for the amount of money expended for fuel, permits, and travel time.

Scenario:  In an average movement, the broker agrees to pay the carrier am agreed amount to move the load from point “Origin” to point “Destination”.  It is assumed that the full amount of the debt or cost is to the carrier.

View Point:  When a shipper is unable to pay, particularly if the shipper is deeply indebted the broker may be liable to pay the carriers and the broker may be forced into bankruptcy. In many instances the broker’s commission is only 10 to 15%.  Just one (1) or (2) bad loads could cost a broker thousands of dollars.

The corporate shield protects personal and/or business assets from creditors, except when a principal signed as a “Personal Guarantor”.


  • Limited Liability Company or LLP are created and created and treated differently, because they represent different  liabilities issues generally requires an attorney.  Here are alternatives to these entities for a corporation with associated cost savings for its formation.
  • Fictitious Business Names (d/ba)-  The Business name is processed through the Secretary of State in each state.  There is no protection against bankruptcy.  A legal notice that in the local newspaper, an article be posted declaring the individuals involved in the formation of the company involved in the formation of the company and the place of business is required to open a business checking account.  Interstate transportation is not subject to state and local sales tax.

Always make a call if uncertain on what type of protection is required for your business.

Post by Alyson Stasek

I am the main admin for If you have any questions please message me directly here on eTruckBook or via email Thanks and welcome to eTruckBook! Alyson

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