Okay, so I bought a used truck from Crete Carrier.

Is a LLC the same as what you are talking about?

 

I understand the difference between a sole proprietorship and a corporation. It's a legal distinction. I was talking about your own internal accounting.

Even being a sole proprietor, you can do your internal accounting as if you were a corporation. It's a separate calculation from your taxes and will likely show a different amount of profit/loss than the IRS will recognize.

You can pay your quote-unquote "employee" a wage for working and your "shareholder" a dividend for being the owner. The IRS won't see any distinction, and therefore it won't change your tax burden. But it will give you a more accurate understanding of how your business is doing than relying on your tax forms to determine your profit or loss.

 

Having a CPA that gives you a monthly Profit/Loss report helps us keep track of our businesses financial health. No need to break our profits into wages and dividends.

We keep our personal finances separate from our maintainance and truck accounts.

 

An LLC has less tax advantages than a regular corp.

 

Good conversation guys, one of the better threads on this board.

 

An LLC can be taxed at any of the tax entity levels set up by the members of the LLC. Sole Prop, Partnership, and Corp. Less hoops to jump through as an LLC than a Corp.

 

Yeah, but you can't do a Sub S corp. and that has the greatest tax advantages.

 

Actually an LLC can. I was looking at this stuff earlier this year, and discussing it with my CPA friend.

This is the source for the above quote LLC Tax Entities

 

OK guys my head is spinning. The best advice I can give is to go talk with a CPA specializing in the trucking industry and see what is the best fit for your individual situation.

 

Best advice right here because only you know the particulars of your situation and how things need to be dealt with. What works for one is not going to work for another.