Forms of Ownership - Page 2 - Truckers' Trucking Forum

Roadmedic · **^ Top** #11 09.10.2009

Quote:

Originally Posted by Mr. PlumCrazy

Last week I met with members of SCORE and let me tell you these old businessmen know their stuff. They showed me all the unseen expenses of owning and operating a business. By time I left there I had to go home and redo my business plan, recalculate my cost of operation and everything. I see it is not going to be as easy as I first though.
But the Questions I have is this, They told me to structure as a sole proprietorship vs an LLC or Corp and I did not need an EIN even though I had already retained one and told me to see if I could get it canceled and just use SSN. This would keep me from having to file Quarterly Federal Excise Tax Return (Form 720) and would only have to file Schedule C on my end of year taxes
I would appreciate input from others thanks

I would have to disagree with score here.

Number 1. You are a business entity. You are required under the IRS rules to provide a 1099 to any and all business entities that are not corporations for services rendered during the year. This includes anyone that worked as labor charges on your truck.

You cannot meet the obligation of the 1099 rules without having a employer ID number. As far as form 720, I have not looked at it yet, but I can if you want.

I am an enrolled agent to practice before the IRS and have done returns professionally since 1982.

Cowpie1 · **^ Top** #12 09.10.2009

I would agree that going the Corp or LLC route as a sole proprietor is not worth the trouble. You will go down either way if some aggressive lawyer for the law firm of Burn em and Run decides to target you. The primary advantage of going the corp route is for tax purposes and most O/O with 1 truck will not see any benefit. That is where a CPA can give you advice. You can start as a sole proprietorship and then change later to a corp or LLC as your situation changes. It is more difficult to go the other direction.

JasonTheRock · **^ Top** #13 09.10.2009

Quote:

Originally Posted by Cowpie1

I would agree that going the Corp or LLC route as a sole proprietor is not worth the trouble. You will go down either way if some aggressive lawyer for the law firm of Burn em and Run decides to target you. The primary advantage of going the corp route is for tax purposes and most O/O with 1 truck will not see any benefit. That is where a CPA can give you advice. You can start as a sole proprietorship and then change later to a corp or LLC as your situation changes. It is more difficult to go the other direction.

No its Dewey, Cheatum, and Howe!!!!

Cowpie1 · **^ Top** #14 09.14.2009

Quote:

Originally Posted by JasonTheRock

No its Dewey, Cheatum, and Howe!!!!

I thought there was another law firm doing the same thing!!!

Gears · **^ Top** #15 09.15.2009

I've spent the greater part of my life being self-employed and/or being paid commission. I have never had to have an EIN for 1099 purposes. Never.

I registered my transportation company as an LLC, me as the only member. I started it as a sole proprietorship, using my SS number for everything but that changed as you MUST have an EIN for your 2290 filings. SS numbers are not allowed.

I the LLC route as it was easier to set up and maintain. Whatever you do, just don't co-mingle $$ between your pocket and the company. If there's ever an issue and this is discovered, your corporate veil has just been pierced and it's easier for folks to come after you personally, regardless of having a corp or llc in place. Saw it happen to a friend

Mr. PlumCrazy · **^ Top** #16 09.16.2009

Thanks all I see where it do require you to have a EIN on Form 2290 that's why I was questioning it

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