Looking for clarity

This is by far some of the dumbest stuff If you have one truck and you are driving it you have no need to incorporate with 2,10or 20 different bank accounts.Incorporating doesn’t protect anything not your personal assets in a accident or any business debt because a 1 truck operation is never going to have any kind of business debt that your personal ss# isn’t tied to the loan.All this stupid dividend payments paying yourself a salary is by far the dumbest stuff I’ve tried to read.You’re not going to clear 2 or 3 or 5 hundred thousand dollars.Your going to pay taxes on the money you clear after deductions and expenses at the end of the year.If you buy a truck with a truck payment and lease it to a carrier your going to do good if you clear 80,000 at the end of year.If you can live on 50,000 simply set up a retirement investment and save on taxes that way but even if you keep it all how much tax are you going to owe on 80,000 if you’re good enough to clear that..But a good tax accountant that has experience in the trucking industry is very good place for information

 

Clarity has been achieved then?

 

Maybe it's the dumbest stuff you've tried to read because you use punctuation and spaces different than everyone else?

I agree with you mostly except for one thing. You don't need an accountant. An accountant is different than a tax preparer and will cost you more money. A simple tax preparer who has had small business/trucking clients before is really all you need as a one truck operation. Heck, they don't even have to have worked with truckers. We're no different. Equipment depreciation, expenses, per-diem, that's all standard stuff to any tax preparer.

 

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As you see everyone has an opinion.
Take all of them with a grain of salt.
Here's mine. LLC is the way to go.
As said above it's all about TAXES.
You want to stay in the lowest bracket, I think it's 12 percent. If your wife is a stay at home mom she can become an employee. If you are paying a loan for the truck put the same amount in a new truck account so when it gets worn out you have the cash to buy a new one. If you get three or four trucks you can stay home and run the show.
Most H&R Block tax people can give you the answers you need and they are local.

 

Yep, I couldn't agree more. I'm not LLC but I'm not telling anyone how to run their show. There are lots of ways to do this and about the only way I know to learn anything is to get started. Maybe that's why college just wasn't for me.

 

LLC, scorp this is the stuff these lease purchase guys are sold in orientation.Like I said if you’re good enough to even clear 80,000 and you can live on 50,000 put 10,000 of it in a tax free retirement fund now you have 70,000 of taxable income now if you buy a truck and don’t do this LP junk you can now depreciate the cost of your truck of your profits so say the truck cost 70,000 maybe your tax person says use 25,000 of the 70 now your taxable income is45,000 an LLC isn’t going to save you anything that the extra tax filling for you and the LLC is going to cost more then.If you’re looking to try and protect your assets from any kind of lawsuits there is nothing you can do to protect anything if you’re driving the truck that caused the injury

 

This is the correct answer. Once you start NETTING over about $70K per year, the cost of running an LLC are less than the taxes you save by not having to pay FICA (15.some %) on the profits you take as dividend.

The "reasonable salary" thing really has nothing to do with how much profit you make. I had this discussion with my CPA two years ago. He had a client that owns a very successful franchise restaurant that at the time netted almost 7 figures. His salary was $35,000, which is what a restaurant manager makes around here. The rest was dividend, and this was filed for at least 7 years like that without a complaint from the IRS. The standard is "what does that job pay", not how much profit you make.

 

Really?Like to know who your cpa is so I can stay far away from him if he thinks it okay to be sharing other people financials with you.