Leasing and taxes

Does it really matter? Any number you multiple by Zero is still Zero.

OK, I had to take the first shot. Really a question for accountant based on projected income.

 

lol You got that on the dime Bill!
After all of your expenses you won't be paying much as a lease op. it will be about 7-10%. self employment tax is what will hurt you. an accountant would advise you to create a company, any other form besides a sole proprietorship preferably an S Corp. Then you would be an employee of your company. this would reduce the amount of tax you will pay. Get a Trucking Accountant. not a regular one. many of the regular CPA's don't know about all the deductions we are allowed.
Good luck it's a lonely lonely narrow and long road as a lease op

 

Tell me.

Why would an accountant advise something like that?

By the way, I am one and I do not ever just recommend something without proper long term meetings and planning.

Most of the time it is not done.

 

8% of gross will get you real close to covering self employment tax and is a simple to figer out

 

yeah sure you can step on me...
Let me rephrase what I said, an S Corp or LLC (guessing it isn't a partnership) is better and more beneficial than other forms of companies for an owner or lease operator.
well, as you would know, Mr. Accountant..
http://smallbusiness.chron.com/differences-between-llc-sole-proprietor-s-corp-4372.html
There are many advantages and disadvantages for each type and entity
I know accountants like to think they're the best thing since sliced bread, so do inform us why you disagree without just saying random and general statements.

 

No need to get spiteful.

There are reasons that many clients should never be a Corporation, whether S corp or LLC.

Take some time and read up on piercing the corporate veil.

There are some that cannot keep the accounts separated and maintain the type of entity.

I just find fault in your making the statement that an accountant would instantly make such a statement.

 

Hey we're all just #### chatting here... don't be offended.
I still stand by my statement. Most cases fit these types I mentioned.. only a very few are the odds. besides, he needs to protect himself and his personal property from the liability of his company and law suites against it.. wouldn't you agree?

 

No, I do not.

If the trucker is incorporated like you said, let us play a game.

There is an accident involving a truck owned by Joe Smith. Joe thought he was smart and incorporated the entity.

It is now owned by Barbertown Transport, LLC of which Joe is the Sole Stockholder. Joe is also the driver of the truck.

It is leased to Robertson Trucking.

There is a major accident.

Who do you think will be sued?

Simply put.

Robertson Trucking will be sued.

Barbertown Transport, LLC will be sued.
Joe Smith as the sole stockholder will be sued as well.

Joe Smith as the driver will also be sued.

How protected are his assets now?

 

they can sue the company... but not Joe smith personal asset... like is home,car, ect ....what every the company has like truck,trailer...ect