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LLC or INC

Discussion in 'Ask An Owner Operator' started by selinrosa, Sep 20, 2020.

  1. Sep 20, 2020 #1
    selinrosa

    selinrosa Light Load Member

    55
    18
    Aug 30, 2020
    0
    I know it might be too late to ask since i already registered my LLC, but still want to get some ideas from you experienced O/Os. I know LLC is paying higher taxes, but managing an INC seems more complicated & needs CPA do payroll stuff. Which one is a better choice for a 1-tuck business?
     
    selinrosa, Sep 20, 2020
    selinrosa, Sep 20, 2020
    #1
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  3. Sep 20, 2020 #2
    Spyro2112

    Spyro2112 Medium Load Member

    567
    381
    Mar 17, 2018
    0
    LLC
     
    Spyro2112, Sep 20, 2020
    Spyro2112, Sep 20, 2020
    #2
  4. Sep 20, 2020 #3
    Accidental Trucker

    Accidental Trucker Road Train Member

    3,087
    6,620
    Jun 4, 2015
    0
    LLC does not pay higher taxes. As a matter of fact, both my LLC's are taxed as Sub S. Corporations, by my election at filing.

    LLC is almost always the best choice.
     
    Accidental Trucker, Sep 20, 2020
    Accidental Trucker, Sep 20, 2020
    #3
    Midwest Trucker and selinrosa Thank this.
  5. Sep 20, 2020 #4
    selinrosa

    selinrosa Light Load Member

    55
    18
    Aug 30, 2020
    0
    As i was doing some research, i noticed this option too. But do you have to choose taxed as s-corp when filing your business? or is it possible to make any changes afterwards? thanks a lot.
     
    selinrosa, Sep 20, 2020
    selinrosa, Sep 20, 2020
    #4
  7. Sep 20, 2020 #5
    abyliks

    abyliks Road Train Member

    3,079
    6,891
    May 2, 2010
    ludlow MA
    0
    Llc you can file as an s Corp, if you are owning and driving the one truck you can even do sole proprietorship,
     
    abyliks, Sep 20, 2020
    abyliks, Sep 20, 2020
    #5
  8. Sep 20, 2020 #6
    Accidental Trucker

    Accidental Trucker Road Train Member

    3,087
    6,620
    Jun 4, 2015
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    You make the election at filing (sole proprietor, S-Corp, C-Corp), and I vaguely remember that you can change it once? Get professional advise on that one. Generally, being taxed as an s-corp is preferred because it allows you to pay yourself a base salary and take any additional distributions from the company as dividends, avoiding Self Employment taxes on that portion. C-corp election would get you into double taxation issues (corporate and individual income taxes), so that is rarely used.
     
    Accidental Trucker, Sep 20, 2020
    Accidental Trucker, Sep 20, 2020
    #6
    selinrosa Thanks this.
  9. Sep 20, 2020 #7
    ichudov

    ichudov Heavy Load Member

    736
    639
    Mar 14, 2012
    Berkeley, IL
    0
    I have a S corp for 22 years and it's been great. Pass thru taxation, lots of freedom, etc. I own 100% of it and do literally whatever I want, nobody tells me what to do or not to do.
     
    ichudov, Sep 20, 2020
    ichudov, Sep 20, 2020
    #7
    selinrosa Thanks this.
  10. Sep 22, 2020 #8
    Judge

    Judge Road Train Member

    11,169
    71,401
    Mar 19, 2014
    Arkansas
    0
    Same.
    LLC taxes as S Corp.
     
    Judge, Sep 22, 2020
    Judge, Sep 22, 2020
    #8
    selinrosa Thanks this.
  11. Sep 22, 2020 #9
    TallJoe

    TallJoe Road Train Member

    7,490
    16,266
    Apr 12, 2016
    Chicagoland
    0
    For a solo: 1 truck & trailer, the difference is insignificant in practical terms.
     
    TallJoe, Sep 22, 2020
    TallJoe, Sep 22, 2020
    #9
  12. Sep 23, 2020 #10
    Midwest Trucker

    Midwest Trucker Road Train Member

    5,771
    20,598
    Aug 31, 2018
    0
    I’m LLC taxed as S Corp as well.
     
    Midwest Trucker, Sep 23, 2020
    Midwest Trucker, Sep 23, 2020
    #10
    selinrosa Thanks this.
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