As a freight factor, I worked with over 500+ carriers, helping them get their wheels rolling and their businesses earning. During this time I repeatedly saw a very common issue with the setup process for carriers. At least 33% of new trucking companies file their LLC wrong, and time is money. A lot of carriers are making some silly LLC paperwork mistakes, so I wanted to help.
Whether you're married and creating this trucking business with your spouse, or partnering with a friend, Tip #1 is pick ONE person's name (the person with the best credit score) to put on the Company Registration with the Secretary of State. Only list one person regardless of how many people own the business. Why? You're a new business, and you're going to be setting up with a lot of other businesses — DOT, FMCSA, freight factors, insurance, ELDs, fuel cards, banks, etc. Each of those will need to do "underwriting" on the person(s) signing up. You'll get set up faster and start making money quicker if there are fewer people to be underwritten and analyzed.
About 33% of the time, someone will say "Hey Paul, I want to get signed up." I email them the setup packet, and 3 people are on the Articles of Incorporation — two get approved, one doesn't. They then ask, "How can we get this third person approved?" The answer: you can't. You need to remove them and redo your LLC filing, changing the company structure to only list 2 people. Then there will be no issues. But now the Secretary of State needs 2 weeks to update the paperwork — wasting time and money.
The quickest way around this: only list ONE person's name on the Articles of Incorporation, and use that same person's name on all applications for other companies' services. If you're doing this with your spouse, create an "Operating Agreement" saying the company is registered under one name but owned 50/50 by both. Type it up and get it notarized at your bank when setting up your business account. Same goes for a partnership with friends — type up an agreement listing each owner's percentage, then over the next 4-6 months, add an amendment to the Articles of Incorporation adding the other owners.
Another trick: when filling out forms, list ONE person's full name — first, middle, and last. If I list "Paul Clark," there are over 300 different Paul Clarks in Georgia. Listing "Paul Elijah Clark" reduces underwriting and analysis time since it avoids "common name discrepancies." Trust me — little things can make a very big difference in the freight game.
Check out www.howtostartanllc.com to help get you started.