New Federal Trucking Regulations Could Increase Opportunities for Independent Truck Drivers
BizFilings Encourages Trucking Entrepreneurs to Consider Incorporation as a Way to Increase Employability
MADISON, Wis. (August 9, 2011)
The federal government is currently in the process of adopting new regulations that would affect daily and weekly driving limits for over-the-road truck drivers. The proposed regulations would mean that fewer driving hours per day are available to drivers, which may lead to an increase in demand of independent owner-operators by trucking companies struggling to complete the usual shipping routes. To take advantage of these changes, BizFilings, a leader in online incorporation services, suggests incorporation should be one factor that all independent owner-operators should consider.
Federal regulators hope to cut driver fatigue and increase safety on the nation’s highways by further limiting hours in service and instituting more mandatory break times. With fewer driving hours per driver available each week, more drivers will be needed, and trucking companies will likely be looking to add to their rosters of independent drivers.
This change may mean an increase in business revenue and take-home pay for independent drivers, but it also may mean a change in business formation. Independent contractors can expose a trucking company to liability and tax issues, so trucking companies prefer to work with drivers operating as corporations or limited liability companies (LLC), making them more appealing than non-incorporated contractors.
Taking advantage of the change in regulation to form a corporation may also have certain tax advantages. Small businesses that form a corporation in 2011 get to take advantage of a special tax law designed to spur job growth and business formation during an economic downturn. The current law allows the stock in newly formed corporations to grow tax-free indefinitely. If the business gets sold in the future, there are no capital gains taxes on the transaction.
BizFilings is a leading provider of incorporation in the U.S. and assists small businesses across the nation through its business filing and registered agent services. Visit the BizFilings online learning center to learn more about the benefits of incorporation.
BizFilings is a full-service, online incorporation service provider, offering small-business owners a fast, easy and economical way to form a corporation, limited liability company (LLC) or other business structure online or by phone. BizFilings also offers a full range of business filing and compliance products, including nationwide Registered Agent Service, helping keep businesses in compliance with state regulations. BizFilings can be found online at www.BizFilings.com. BizFilings is a part of Wolters Kluwer, www.wolterskluwer.com, a leading global information services and publishing company. Wolters Kluwer, with 2010 annual revenues of €3.6 billion, employs approximately 19,000 people worldwide, and maintains operations in over 40 countries across Europe, North America, Asia Pacific and Latin America.