LLC formation & EIN — do this first, correctly

Why an LLC, not a sole prop

You can technically get MC authority as a sole proprietor. Do not. One rear-end collision as a sole prop puts your house on the line. An LLC — properly maintained — creates a legal wall between your business liability and your personal assets. It costs $100–$500 and 45 minutes to set up. It's the single cheapest insurance policy you'll ever buy.

File in the state where you physically operate the truck. Full stop.

The four filings, in order

1. 1LLC formation with your Secretary of State ($50–$500 depending on state).
2. 2Operating agreement (single-member is fine; template below).
3. 3EIN from the IRS (free, 10 minutes, get it same day).
4. 4Business bank account funded from your personal account with a documented capital contribution.

Filing the LLC — the two ways

Option A — Direct with the state ($50–$500, 1–15 business days). Search "[your state] secretary of state LLC filing" and use the state's own portal. Never pay LegalZoom $299 to do a $150 filing.

Option B — Registered agent service ($39 first year + state fee). Use Northwest Registered Agent ($39) or Harbor Compliance. This is only worth it if:

• You don't want your home address published as your business address (agent's address is used publicly).
• You're a solo owner and want mail scanning.
• You physically move a lot.

Do NOT use ZenBusiness, Incfile, or LegalZoom for registered agent service. They're expensive and upsell aggressively.

Naming your LLC — one rule that matters for trucking

Your LLC name will appear on:

• Every rate confirmation
• Every W-9 sent to brokers
• Your MC authority record (public, searchable)
• Your Certificate of Insurance

Pick a name that's easy to say on a phone, easy to spell, and doesn't scream "one-truck carrier." Bad: "Bob's Fast Trucking LLC." Better: "Salvo Logistics LLC" or "Northwind Freight LLC." Neutral and scalable.

The operating agreement — clauses that actually matter

Even for a single-member LLC, you need a written operating agreement. Banks will ask. Brokers occasionally ask. And it's the document that proves the LLC is real, not a shell — which is what preserves the liability wall.

Clauses to include:

• Business purpose: "motor carrier and logistics services, and any other lawful business."
• Capital contribution: whatever you put in from personal (e.g., $5,000).
• Distributions: owner may take distributions at any time consistent with tax obligations.
• Indemnification: the LLC indemnifies the member for actions taken in good faith in the scope of business.
• Dissolution: what happens if you die or wind down (usually assets to your named beneficiary).

Free template: search "[your state] LLC single member operating agreement template" — most secretaries of state publish one.

EIN — file yourself, same day, free

Go to irs.gov/ein (during business hours) and use the online EIN Assistant. It takes 10 minutes and you walk away with the EIN letter (CP 575) as a PDF.

The business bank account

Open a business checking account the same week you get your EIN. You need:

• Filed articles of organization (or certificate of formation)
• EIN letter (CP 575)
• Photo ID
• Initial deposit (varies, usually $100)

Good banks for trucking: Bluevine (online, no fees, integrates with QuickBooks), Novo (similar), Chase Business Complete (physical branches, easy in-person deposits at truck stops... kidding, at branches).

Fund the account with a documented capital contribution. In your bookkeeping, log the deposit as "Owner's Capital Contribution — [date] — $X." This is the paper trail that keeps the LLC from being pierced.

The S-Corp election — DON'T do this yet

You'll see YouTube gurus screaming "S-Corp saves you $10k in taxes!" That's sometimes true — once your net profit crosses roughly $60,000/year. Below that, the payroll costs (reasonable salary, quarterly filings, W-2/W-3, state unemployment) eat the savings.

Rule of thumb: file the S-Corp election (Form 2553) in year 2 or when your accountant tells you your projected net will clear $75k. Not before. Filing early costs more than it saves.

Action items — do these this week

• File LLC with your Secretary of State
• Draft & sign operating agreement (single-member template is fine)
• Get EIN from irs.gov/ein (free)
• Open business checking account
• Make documented capital contribution ($1,000+ recommended)
• Set up QuickBooks Simple Start ($30/mo) and connect the bank account

Next: MC & DOT authority — the FMCSA filings that let you legally haul freight.