LLC, S-Corp or no?

Have you looked at OOIDA for information?
www.OOIDA.com

 

You really need an account/tax person familiar with the trucking industry. Especially now with 87000 new IRS agents to audit small businesses.
With an Scorp you can pay your self as an employee and part of the tax is paid by the employer thus being deductible along with medical and 401k. Paying yourself 50k you can leave the rest of your profits in the company and remove it as profits at 15% tax rate.
SAVE ALL RECEIPTS ON PAPER FOR 7YEARS

 

Yes, the focus and website is for owner-operators and small fleet owners.

 

The one article I posted shows how important that is. Man & wife had to prove they spent money on truck repairs. IRS said they were flagged and audited because of truck repairs seemed too high. Fortunately, they had all the receipts.

 

Texas cattle ranchers audited by IRS issue dire warning to Americans: 'They want to get you'
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I orginally posted this in the Politics section because I figured it might go south quickly. Maybe not though.

 

Starting out go LLC, you don't know what you'll make. There is a level of income that make sense to switch to an S-Corp. I've heard 50k to 75k range. Then seek out a CPA that can run the numbers for you before the end of your fiscal year, then decide what makes the most sense.
There are added expenses to an S-Corp which will be taken into consideration when running the numbers. Saved myself about 11k last year by switching to an S-Corp. Your mileage may vary

 

Are you a new owner-operator or have been in business but now getting an LLC? Do you have your own authority? Why are you getting your LLC? Not a big deal but it offers very little real protection. The good news is none of us have enough money for a high-dollar attorney to bother with (1 million plus). In most states, they can't touch your primary residence or your retirement.

I agree mostly with noworrez. It only makes sense (due to expenses of payroll and a more complicated tax return that you will be charged more for) once you hit the 50-75k profit on your schedule C consistently. If you are new, and with rates falling, you probably won't be that high if you are using accelerated depreciation on the equipment you just bought to lower your tax bill. The only thing is I am understanding the S corp election has to be made in the beginning of the tax/fiscal year?

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