I want to engage in cargo transportation. Do you need to register ...

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I want to engage in cargo transportation. Is it necessary to register an LLC, or is it enough to have an FOP?

27.04.2023 20:11 529

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Photo of lorina200215 Lorina Fedan

For cargo transportation, you can acquire both the status of a Limited Liability Company and the status of an individual entrepreneur. Acquiring one of these statuses will be sufficient to legally engage in such activities.

If you intend to build a large competitive business and involve a significant number of workers and participants in it, then it is better to obtain the status of a limited liability company. But if you plan to work "on your own", i.e. perform the functions of a chauffeur, dispatcher or porter yourself, then apply for the status of a natural person-entrepreneur.

The difference also lies in the following: when registering the status of a sole proprietorship - you will personally be responsible for your debts in any case. That is, your property (apartment, land, car) may fall under debt obligations. If you form an LLC, then in this case your personal property will be fully protected.

Nevertheless, the preference is given to the registration of a business owner: you can independently dispose of your income, spend it not only for the benefit of your activity (cargo transportation), but also for personal needs; simplified bookkeeping is inherent to FOP. The income of the Limited Liability Company will be only the income of the legal entity, and you do not have the right to dispose of them personally.

For a more accurate answer to your question, you need to know about the specifics of your activity, what is the cargo transportation, its type, and within which territory the transportation will be carried out

28.04.2023 12:05

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