Should I form a biz entity before starting walk away lease?

to the OP, it would be in your best interest to start a LLC (even if its just you) an LLC will protect your personal assets. as far as a lease, there are many, it would greatly vary on the details. I am currently in a walk away lease purchase with my company. it is actually to my benefit over owning my own truck outright. (I did have my own older truck and my repairs and maint. was costing me more than the new truck im in now) I however run team and I know up front ill wear out the truck by the end of the lease. I also know what I need on a per mile basis for my truck to be profitable. keep in mind if you are solo it is just you paying for that truck and your not making money 10 hours a day that you are paying for. also i dont know how your lease works but mine covers ALL costs due to maint and repairs. tires and oil changes add up fast, so keep that in mind. as far as other comments, we make WELL over $100,000 per year EACH. if you are an owner op and not making that kind of money you are at the wrong company. for reference my truck runs aprox 300k miles a year, nets about $760,000 and gross after all expenses around $440,000. dry van no drop and hook (my trailer) never touch freight. OTR but I do NOT do the new england states. I refuse to pay those high ### tolls. I also live in a state free of income tax. so I do not pay any state tax. BTW I do not work for ANY of the big outfits you see running up and down the road. I work for a very small (30 truck) all O/O company who treats all its drivers like humans not ###. Ive been here for a year and will retire from here.

 

you have to make money to get tax benefits.

 

Agreed and I do.

 

Sounds like you got a good lease that's working for you. I myself will never team and my days of running western 12 or all 48 are over. I love running the west coast and being home every weekend. Sure I'm not making a killing out here but I also only work around 225 to 250 days a year also. Props to you for being a runner and making that money. I wish success in the future.

 

But your not the OP

 

It’s hard to believe anything you’re saving when you obviously lead out with a lie if you’re the only one in the LLC or corporation how is your personal things protected your obviously have to be the one driving if your the only one in the corporation so any lawyer is going to sue you since you were the driver and your corporation and the carriers of the insurance which is the carrier your leased too

 

i wasn't going to comment but dam this Pepper24 truly has no clue what there talking about, in 2002 a buddy of mine was sued yes the accident was his fault so he deserved what he got, his lost his CDL for 5 years and a personal fine of $2000.00, that being said an LLC will not protect you from that but since his LLC was sued his personal assets could not be touched at all the LLC did have its own assets that he had to liquidate before the LLC went bankrupt and shut down... 100% of his personal assets were protected.

any one with a brain at all can research protection laws for LLC's, both state and Federal .... I have owned and operated an LLC for 7 years im making allot of money and the tax benefits from that LLC are awesome you do not have to pay yourself i dont i 1099 the profits .. i am in the process of growing as we speak and able to drop 60% down on three trucks and trailers just have not decided yet whether im going for my own authority yet or not and i will not surpass 20 trucks as a company always protect yourself and business yes wait a few months like 6 months than decide if you stay lease operator than obtain your LLC fast.

 

What is your tax structure LLC or S Corp

 

I file as S-Corp

 

I do also but wanted to let you know when filing as an s corp the irs requires you to pay yourself a fair wage that is comparable to industry average. I pay myself 45k a year.

Employment Tax Forms
If your S corporation has employees, it must withhold employment taxes on their wages. Moreover, as a rule, any shareholder in your S corporation who provides services to the corporation must be paid a salary. Shareholder-employee salaries are subject to employment taxes in the same way as the salaries of other employees. Taken together, this means that your S corporation must periodically withhold, report on, and pay employment taxes for employee and shareholder-employee wages and salaries.