The corporate structure of your company is the foundation on which your legal protections rest. An informed decision about corporate structure can protect your company for years while an uninformed decision will cause cracks in your protection that always get worse with time.
Whether your business is a corporation, an LLC, a limited partnership or another type of business organization, your bylaws, company agreements and shareholder agreements should be carefully drafted to protect your business. Your company’s limited liability status protects your individual assets from a big verdict and we strongly suggest you periodically review your entity structure with an experienced trucking attorney.
Recently implemented Department of Transportation regulations require that motor carriers and freight brokers operate under separate authority. In many cases, the best practice for companies who have business as a motor carrier and as a freight broker is to operate under separate legal entities. Unless your businesses are properly separated, a bad accident in the motor carrier business can wipe out your other businesses and all the hard work it took you to build them.
Many trucking companies are formed with just a few trucks and some grow rapidly to have hundreds of trucks in a few years. Trucking companies often begin by providing transportation services but quickly grow to also offer freight brokering services, equipment sales and leases, safety consulting services, driver staffing services, tire and parts sales or maintenance, and other many other successful businesses. As your company grows and as you develop other businesses and streams of revenue, we strongly suggest you consult an experienced trucking attorney and consider separating the businesses into multiple entities.
We have extensive experience with trucking company formation and restructuring and our lawyers understand how your company’s operations impact the corporate structure it needs. As always, please contact us if you have any questions.