I currently am leased onto a company and have always filed a 1099, Recently I bought another truck and want to partner with my son to eventually spin off and do it myself. Until then the 2nd truck will be leased onto said company that I currently drive for. In order to hire him what do I need to do in order of taxes. Should I start and LLC and File under S-CORP to save taxes? Also so that we have a w-2/4 and a set salary? Just some guidance would be great!
The best way to do this is file to become an LLC. Then you can elect to be taxed as an S Corp which is the most beneficial for tax purposes. Setup a payroll service like ADP and pay on a W2. If your net profit is over 50k per year this is the best way to do it. Find a good truck CPA to guide you through the process. Good luck.
