Work for company in one state, live in another state?

You will be an independent contractor. They aren't going to withhold any taxes so it doesn't matter where you live.

Your friend is correct. Pay yourself reasonably, not take every penny you get. Your friend is however wrong, you will pay taxes on all NET income. You can't make $2,000 a week, but only pay yourself $800, and not pay taxes on the other $1,200. It doesn't work like that. If that is what your friend is doing, then he's committing a felony and will be facing years in prison when he gets caught. With an S-Corp, you could pay yourself $800 a week and pay personal income taxes on that, and have the $1,200 a week be charged at the corporate income tax rate, but you have to sit down and do the math and figure out if it's really worth going through all of that.

 

Both are a waste of money. Just remain a Sole proprietor.

 

Call a CPA that specializes in trucking taxes. They will tell you that not only do they use LLC for their company all their drivers do also. With that being said taxes are not why they use it it's for the privacy aspects.