Making some changes to your trucking business

Posted by Bonnie Published in Article, Business, How To

If you have been thinking of changing your sole proprietorship trucking business into a corporation, or LLC, keep reading.

First, lets start with some definitions to clarify the difference between the different types of businesses.

A sole proprietorship is just that, a business owned by one person. In your case, that would be you owning your trucking business. T

A partnership is a business that is owned by more than one person often two people who share in the profits and file taxes individually.

A corporation is a company or group of people authorized to act as a single entity.

A limited liability corporation is just that. It limits the liability of the company or LLC for short. A LLC provides protection from personal liabilities like a corporation and the tax advantages of a partnership.

There are tax advantages and disadvantages with each type of business. Consult with a business professional or a business attorney for guidance on what is right for you.

Now that we are clear on the company definitions, let’s go into some of the forms and their definitions.

What are the Articles of Incorporation?

The articles of incorporation describe the fundamental identifying and operating characteristics of your corporation. Once filed and approved by the state, the articles of incorporation legally create the corporation as a registered business entity within the state.

What is Included in the Articles of Incorporation?

No matter the type or size of your new business, most states require that the articles of incorporation include, at a minimum, the following information:

• Your new corporation’s name and address (principal place of business)

• The corporate purpose (usually stated in broad language such as “to engage in any lawful activity,” in order to avoid limiting the corporation’s business prospects)

• Name and address of your corporation’s registered agent, who will be authorized to physically accept delivery of certain legal documents (including lawsuits) on behalf of your corporation.

• Stock information — including number of shares the corporation is authorized to issue, designation of classes of shares, and value of each share.

The articles of incorporation will usually identify the incorporators of the corporation, who initiate the incorporation process and are often responsible for signing the articles of incorporation prior to filing with the state. If the articles name the director(s) of the new corporation, the director(s) may also be required to sign the articles of incorporation before they are filed.

Writing the Articles of Incorporation

Whether you prepare them yourself, or consult an experienced business attorney for assistance, your new business’s articles of incorporation do not necessarily need to be complicated or extensive. If you decide to write them yourself, your articles of incorporation will most likely be accepted for filing in your state as long as they contain the minimum information identified above in bullet-point. But you likely need not create the articles completely from scratch, as most states’ Secretary of State web sites contain pre-printed articles of incorporation forms that your business can complete in a relatively short amount of time. Some examples, visit your state website, i.e. For Colorado it would be www.sos.state.co.us To change to another state, remove the “co” from the web address and enter another state such as Wisconsin, wi or any other. Look for the Publications area and click to find the articles.

Articles of Incorporation: Filing and Fees

Once your new corporation’s articles of incorporation are written and signed, they are ready for filing with your state’s Secretary of State office (or similar state agency that handles business registration). In all states, the filing of the articles of incorporation requires the payment of a corresponding filing fee — ranging anywhere from $35 to $300, depending upon the state of incorporation. In some states, the filing fee varies if the new corporation is a non-profit rather than a traditional (for-profit) corporation. For example, in California the fee for filing articles of incorporation for a traditional “general stock” corporation is $100, while the filing fee for a non-profit’s articles of incorporation is $30.

To ensure that your new business complies with your state’s legal requirements at all steps in the incorporation process, you may wish to consult an experienced business attorney.