The best way to beat up Uncle Sam

Like I said I don't have all the answers, and it would be smart to ask a professional tax advisor on this issue, but there has to be a better way.

 

You guys need to back off here, it was just a suggestion..geeez. I'm not giving tax advice there is no way I can tell what might happen if this is done in this way, but I can tell you this...I'm not to afraid to ask. As a sole proprietorship, all property of the business is in the owner's name. The owner is responsible for all debts of the business and is legally liable for any problems that the business might have. In addiiton the life of the business is limited to the life of the owner. If the owner dies, the business legally ceases to exist. I just don't think the best way to start a trucking co. is to be a sole prop. As an LLC, the members have limited liability, income flow and losses to individual members tax returns. Any time there is a substantial personal liability for the owner I feel it would be wise to have LLC status. Just my opinion, I'm not a tax advisor in any way shape or form.

 

Well,
There would be separation of monies from the co. to the employee a regular w2. You can own a company and still be an employee you know, as long as all your t's are crossed. Yes, it seems like a headache and we've owned 4 other trucks before so we are gun shy and don't want to be a sole prop. ever again. An accountant would have to be used, there's no way i would do all that paperwork. An umbrella policy is a good idea, but i'm not willing to put everything we own into someone else's name. It's called limited liability for a reason as long as earnings and profit get separated into respective accounts, and all taxes are taken out, you have an accountant handling all operations I really don't see a problem with it. Income would be reported as required on w2's per individual taxes, the owner is an employee and reports his income on his personal tax return. This is not my idea, there are guys that really do this. They have their own customers though, not independent contractors that's when you get into trouble and can't make the income. You have to have your ducks in a row and know the tax laws. As long as taxes are paid, there is no reason for an audit. Keep good records, that's the accountants job, and yet another deduction. An attorney cannot take the house if it's not included in the assets of the company. LLC is a hybrid taking the advantages from a schedule C corp and the advantages of a sole prop. without the liability issues and not having to sell stocks.
Still not convinced guys, I'm going to ask about this and find things out even if I have to take yet another class, a tax class.

Rosebud