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"After serving on the bench for the last 16 years I sincerely believe that Harvard Business Services, Inc.
is the most professional, knowledgeable, and customer focused formations company in the State of Delaware.The proven reliability,
accuracy and Harvard's 25 years of experience are invaluable when starting and maintaining a company."
Hon. Joseph B. Melson
Delaware State Court
Retired
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Your data is kept confidential and is not released to third parties.
Your personal information is encrypted by Secure Sockets Layer (SSL) software so that it cannot be read as the information travels over the Internet.
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Benefits By Industry/Group:
Protect your assets, smart, hassle free and affordable.
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 Taxi Drivers/Owners |
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You’re in the transportation business. As with trucks, airtaxis and buses, your vehicles move things from Point A to Point B—in your case, people. When vehicles are in motion, they collide with other things, sometimes a fender bender, sometimes far worse.
When an accident involving one of your cabs falls in to the "far worse" category, you need to protect your assets and your family’s financial future. You need to enlist Harvard Business Services, Inc. to help you place your taxis into separate Delaware Corporations or LLCs.
At HBS, we have specialized in Delaware business formations for more than 25 years. By choosing Harvard Business Services, Inc. as the company to help you make informed decisions about incorporating in Delaware, you’ll join thousands of other savvy business owners who have turned to us to help them protect their personal assets and save money on taxes.
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| WHY INCORPORATE? |
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| 1. |
Real Life
If you are an owner/operator of one or more taxis, you probably rely heavily upon your automobile insurance to protect you in the event of an accident. Unfortunately, most drivers don't buy or can't buy enough insurance to cover even a minor accident, let alone a major one. Plaintiff’s attorneys won’t stop at the limits of your insurance if the claim is large enough. If you have the taxis titled in your or your spouse's name, you run the very real risk of losing not only your taxis, but also your personal assets—your home, your car, and your savings.
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| 2. |
Benefits of Incorporating in Delaware
- Limited liability
- Asset protection
- Homesteading & Insurance
- Delaware Family Limited Partnerships
- Delaware Corporations and Limited Liability Companies
- International Corporations
- Delaware Trusts
- International Trusts
- Offsets inadequate insurance
- Pass-through taxation (with S-Corp and LLC)
- Business deductions for losses and expenses
- Enhanced credibility with existing and potential customers
- Investor attraction
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| 3. |
Strategy
Following are strategies implemented by our customers to protect thier assets through Harvard Business Services, Inc., depending on whether they own one taxi or multiple taxis.
OWNERS OF ONE TAXI:
We often hear owner/operators ask, "I drive my own taxi, so how can incorporating protect me from liability?" They mistakenly believe that if they are behind the wheel they are liable no matter what, which is simply not true if they take the right precautions.
Here are a few tips from owner/operators faced with the same situation:
- If you are sued for an accident that wasn't your fault, it may help to be incorporated in Delaware. A Delaware corporation or Delaware LLC will provide another layer of protection that complicates the plaintiff’s lawyer’s task. This extra layer of protection may cause the lawyers to reconsider suing you personally, or may be an inducement for them to attempt to reach a settlement.
- If you own a home, check on your state's "Homestead Laws." These laws, which vary greatly from state to state, may afford you protection from losing your home, even if you lose everything else and can't pay for it. In some states, you have to qualify first, so check it out.
- If you own any other real estate — a farm, beach house, cottage in the woods, or an apartment building—put each piece of real estate under a separate Delaware LLC immediately. Include your spouse and children in the LLC as non-voting members. In most states you'll need to file a quit-claim deed to transfer the ownership; if the property has a loan against it, you may need the permission of the lender to transfer the title.
- If you have numerous assets, consider setting up a family trust. You'll need a good trust lawyer, which adds to the cost, but it is the best form of protection there is.
- If you've got nothing to lose (that is, you don't have any sizable assets), consider increasing your insurance. It may keep you from declaring bankruptcy.
OWNERS OF MORE THAN ONE TAXI:
At great risk to their future financial wellbeing, most owner/operators who own more than one taxi are still doing business in their own names as sole proprietors. If an accident occurs, in an effort to recover damages the victim or victims will go after both the assets of the business plus the owner's personal assets. This could not only bankrupt the business but also strip the owner of all other personal assets.
There are those who have incorporated the business and placed the ownership of all the taxis in this one corporation. While this arrangement is preferable to a sole proprietorship, it still leaves the corporation vulnerable to losing all its other assets and taxis in a lawsuit resulting from an accident involving one taxi.
Forming multiple entities so that each one owns a single taxi is the safest strategy—a strategy the large transportation companies, including major airlines, employ. They use this strategy for maximum protection from lawsuits, and so can you.
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Case Study
Here's one way to protect your assets as an owner/operator with three taxis, a home, a family farm and other household assets. It may not be right for everyone, but it's a strategy to consider:
The first entity is a Delaware Subchapter S corporation. This entity is your operating company, the one you use with your customers and suppliers. All payments flow into this company. Using a Sub S Corporation for the operating company gives you tax advantages and separates your business from your personal assets. It protects your assets from the business’s potential liabilities, yet this Sub S Corporation doesn't own any of the taxis.
Each taxi is owned by and titled in the name of a separate Delaware LLC. Each taxi is then leased to your operating company under a separate contract. Consequently, if one taxi is involved in a lawsuit, the other taxis can keep operating.
LLCs are utilized to hold the assets because they are tax-free companies with strong liability protection. If you set them up correctly, you won't need to file separate tax returns for each LLC, saving time and money.
The above strategy is just one example of how you, the taxi owner, can use the same legal protections used by the biggest companies in America use.
The strategy may not be an exact fit for every circumstance so it would be wise to consult with your lawyer and accountant first and then rely on Harvard Business Services, Inc. to handle the details of filing and maintaining of your company.
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