Question for O/O IC Drivers

Sole Proprietorship..yes it is allowed.

I went with it due to tax reasons..you have to make over a certain amount using any of the others before you see any savings.
As for protection..not really any different then the others.
Any 2nd year law student can get around the protection offered by a LLC.

I live in Delaware..home of the LLC.
I talked with accountants and 2 lawyesr as to which would be the best for me.

Sole Proprietorship is the one.

Use the one you feel will be best for you..do your homework.

 

If you go the LLC route and you are the sole member (ie: the only listed owner of the LLC), then from a tax point everything still pass through to your personal income tax return UNLESS you specifically elect with the IRS to have the LLC treated as a corporation. I have my rental property in an LLC, and if I eventually go the IC route I'll do that as an LLC as well. No matter what form you choose to go, as the operator of the vehicle you bear some personal liability for anything negligent you would do. Perhaps listing yourself as an employee of the LLC will help mitigate the risk and protect your personal assets, but that's something beyond my vast (haha) scope of knowledge.

 

Look into becoming an s-corporation as well. When I was doing insurance auditing a lot of small businesses/individuals I audited were set up as s-corps for tax purposes. Main difference between an s-corp and c-corp is that s-corps are taxed more like a sole prop, while c-corps are taxed twice (on the corporate level first then on the individual level when you pay yourself salary).

I don't claim to be a tax accountant and never delved into taxes at all really, but this is info that will at least steer you in directions to ask a tax professional about. I was more into general ledger accounting/bookkkeeping more or less.

 

By the way I'm tentatively shooting to be up in Green Bay the week of August 18th.

 

Congrats stevep1977

 

Thanks, Main reason I've been putting it off till then is:

a) parents want me to dog sit in a couple weeks when they go on vacation. Can't let the pooch be boarded.

b) point a is a perfect reason to take time off, figure out the details, a play in a few semi-major poker tournaments lol

 

Congrats on your new entrepreneur venture! I went with sole proprietorship to begin with. Now after a year and 1/2 have revisited the idea of going with a LLC. However my income just barely is at the level where it would actually be a tax savings plus add the cost to set it up and I have decided to just stay as SP for now.

 

NY state requires IC/OO's to be set up as an LLC.....