O/O Need Advise on best way

nlb75 · Aug 28, 2010

talk to a cpa

10 speed · Sep 2, 2010

REDD said: ↑

I didn't read your whole post... But I read enough to give you perfect advice.

NEVER DO BUSINESS WITH FRIENDS OR FAMILY.... THE ENDING WILL NOT BE GOOD!
Click to expand...

^^^^This x's 100,000,000

Brickman · Sep 2, 2010

stormshy7 said: ↑

@Denis3721; The company we are leasing on to is already well estibilshed, and adding us in effort to not loose his already established private customer base, as he can not handle all the loads himself anymore. It is better to expand than say no, I can't haul that for you.
I do believe you may find ourself a bit strapped if you are leasing people onto your own authority, covering their plates, insurance and what not, and only charging 10%.

I appriciate your comment, however, My question was not in reguards to place we can make more money, it was about setting this where both my boyfriend, and myself are protected, along with our assets. I own the truck. I also own my own home, free and clear, and have a decent amount in investments. I would like to make sure my assets, while still tied to the truck because I own it, are protected in case something should happen.

@Lilbit If you could send me the link, it would be greatly appriciated!
Click to expand...

While you can get some good advice here there is also some bad advice. The next quoted post is one example.
Be certain to run your business plans by a CPA or business lawyer. It may cost you a few $100 for the consulting fees but save you $1000s down the road.

Krooser said: ↑

Pay your driver as an independent contractor... but you can't dictate to him when he works and what he does while he's working (then he's an employee)...
Click to expand...

Bad advice and highly illegal.

The IRS is cracking down on this sort of thing. I've talked to a current and former CPA this week. They both told me the same thing. The current CPA just came from a 2011 law change seminar. She said that she knew the new laws would be bad but had no idea how bad.
Next yr when the new taxes and new laws kick in to start funding the health care fiasco that there are going to be A LOT of folks going out of business and there will be A LOT of very very pissed off voters.

The IRS is hiring hundreds of new agents to track down tax violators. The illegal 1099 worker set up is going to be probably one of the areas.
As long as he doesn't own the truck he IS NOT an independent contractor!

Plain and simple.

direct quote

Provision of tools and materials. Workers who perform most of their work using company-provided equipment, tools, and materials are more likely to be considered employees. Work largely done using independently obtained supplies or tools supports an independent contractor finding
Click to expand...

http://www.comptroller.ilstu.edu/downloads/20-factor-test-for-independent-contractors.pdf

The practice of 1099ing truck drivers that do not own the truck has been illegal for many many yrs.

Krooser · Sep 3, 2010

Brickman said: ↑

While you can get some good advice here there is also some bad advice. The next quoted post is one example.
Be certain to run your business plans by a CPA or business lawyer. It may cost you a few $100 for the consulting fees but save you $1000s down the road.

Bad advice and highly illegal.

The IRS is cracking down on this sort of thing. I've talked to a current and former CPA this week. They both told me the same thing. The current CPA just came from a 2011 law change seminar. She said that she knew the new laws would be bad but had no idea how bad.
Next yr when the new taxes and new laws kick in to start funding the health care fiasco that there are going to be A LOT of folks going out of business and there will be A LOT of very very pissed off voters.

The IRS is hiring hundreds of new agents to track down tax violators. The illegal 1099 worker set up is going to be probably one of the areas.
As long as he doesn't own the truck he IS NOT an independent contractor!

Plain and simple.

direct quote

http://www.comptroller.ilstu.edu/downloads/20-factor-test-for-independent-contractors.pdf

The practice of 1099ing truck drivers that do not own the truck has been illegal for many many yrs.

Click to expand...

If you set it up with the driver paying the fuel, tolls and misc. expenses in exchange for a higher percentage of the revenue it will work. Many truck owners split the revenue 65/35 with the driver getting the big number but paying his own fuel.

But you also must allow the driver the freedom to pick and choose his loads and when he wants to work. There are many expediters who run legally that way and there have been court cases that have supported those agreements.

I drove my son's truck for a few weeks last year after I wrecked mine when a drunk illegal pulled out in front of me. I picked the loads, the delivery times (within reason) and paid my own fuel and tolls. I got a 1099... seems legal to me. My CPA didn't think it would be a problem either.

stormshy7 · Sep 3, 2010

We deicded to make me the Lien Holder on the truck. That way the truck, and everything can be in his name, all the paperwork is his to deal with and file. I just have some recourse if something were to happen to him, the truck will come back to me. Not his parents or children or something.
And my other investements and house are not on the line should anything happen.

nutcase · Sep 4, 2010

Guess that is another way to do it. Hope it works out for you.

Frenzy · Sep 4, 2010

stormshy7 said: ↑

We deicded to make me the Lien Holder on the truck. That way the truck, and everything can be in his name, all the paperwork is his to deal with and file. I just have some recourse if something were to happen to him, the truck will come back to me. Not his parents or children or something.
And my other investements and house are not on the line should anything happen.
Click to expand...

I think you have picked the best way to go. One more thing is to talk with your insurance agent about how to cover yourself against loss if something were to happen to the truck or b/f.

Ken

Ed- · Sep 4, 2010

REDD said: ↑

I didn't read your whole post... But I read enough to give you perfect advice.

NEVER DO BUSINESS WITH FRIENDS OR FAMILY.... THE ENDING WILL NOT BE GOOD!
Click to expand...

I agree 101 %

Krooser · Sep 4, 2010

stormshy7 said: ↑

We deicded to make me the Lien Holder on the truck. That way the truck, and everything can be in his name, all the paperwork is his to deal with and file. I just have some recourse if something were to happen to him, the truck will come back to me. Not his parents or children or something.
And my other investements and house are not on the line should anything happen.
Click to expand...

Make sure you are listed as an additional insured on the truck insurance policy.

Mr. PlumCrazy · Sep 5, 2010

You need to seriously talk with a Lawyer. God forbid anything happen to him a lien can be challenged in court. While the odds might be in you favor it could cost more than what its worth. Liens are tricky and a lawyer can advise you. There are several types of liens

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