Team owner operator tax question.

Without having a lot of information the easy answer is you want to form a Sub-Chapter S Corporation and split the shares 50/50

 

The easiest way is for one person to own the company, and the other one work for them. Otherwise you end up with two captains on a ship......

 

Man that's a good question. Who's name is on the truck would be able to deprecate . Let us no when you figure this out

 

The easiest method is to come up with a name that both of you like and make it an Partnership. It takes legal papers to show the name and percent of ownership. The partnership buys the asset for the business. It gets the income and expense during the year. You can draw a salary during the year and then split profit end of year.

This can be achieved by forming an LLC with both names as well and choosing to be a partnership.

You can do an LLC and make it a C corporation and do the same. The C Corporation can pay a salary and give benefits to the officers.

You can do the LLC and be an S Corporation. Take a salary and then share profits. Benefits to shareholders are limited.

All require a set of books. The corporations require more documentation and annual minutes.

 

Get married and file a joint return,
Sorry I couldn't resist.

 

A good accountant and an attorney. follow their advice. you and your friend will still be friends at the end of the day.

 

Pay each of you a base salary and then give him 40% profit share, or whatever you agree on. You should get a bit more to compensate for the risk you're taking.

You will get paid from the company you are leased to, you (your LLC) will pay him. I would definitely stay away from 1099. Just run it through a payroll service.