S.P., Inc. or L.L.C.???

I'm not going to get into an argument with these guys. I still say call an attorney. It won't cost you a thing to call. They can explain what a LLC or corp will and will not do for you.

 

I don't want to have a flame war over this issue, it is true that if a corporation (s-corp or LLC) is not managed properly it will provide limited personal asset protection. If, on the other hand, all of the required paperwork is maintained then there is very little likelihood that someone can claim that the corporation is a fraudulent front - here's a link with some more information.

My personal recommendation is to incorporate furthermore do it in Delaware where there are very strong laws protecting corporations and ownership anonymity if you wanted to be anonymous.

 

The TIN is your SSN all that other stuff is a waste of time and money if you're going the SP way. SP for one or two trucks gives you better pretax deductions. Authority is in my name and so is everything else that way there's no mistake who gets the money. Anyone that wants your ssn can get it easy enough.

 

Guess the whole recommendation from DOT, FMCSA, IRS and Secretary of State to get your TIN to use for filing (which BECOMES public record) is pretty well hogwash. Instead of your ssn

 

Fmsca don't make your number public record. Why would you go to the secratary of state for anything? O/O no need for a EIN it's your SSN. Anytime you get anything it cost money so the EIN is going to cost you something.
But that's what they want good people to open their wallet without question. Me I take the cheap route. No special accounts or any of the bells and whistles and my money still spends the same as yours. Fmsca don't make your number public record. Why would you go to the secratary of state for anything? O/O no need for a EIN it's your SSN. Anytime you get anything it cost money so the EIN is going to cost you something.
But that's what they want good people to open their wallet without question. Me I take the cheap route. No special accounts or any of the bells and whistles and my money still spends the same as yours. Now I'm sure they told you just what you wanted to hear about numbers. I liken that to volunteering for something you may get more than you wanted. I never volunteer or hold my hand up nothing good comes from it.


http://www.thetruckersreport.com/tr...an-owner-operator/212652-s-p-inc-l-l-c-2.html

[h=2]Purpose[/h]The main purpose of any tax identification number is to allow the business owner to pay taxes on behalf of the business. When filing business taxes, the company owner must include this number on her tax forms. Banks require a tax identification number to open an account in the business name. Suppliers and customers sometimes ask for a tax identification number in order to establish an account with the company or cut a check for payment for tax reasons.
[h=2]Clarification[/h]In the case of a sole proprietorship, a Social Security number is the same thing as the business' tax identification number. A sole proprietor's personal Social Security number automatically covers his business activities--the owner and business are one and the same. But owners of other business types (partnerships and corporations) must apply for a separate tax identification number in order to conduct business. A partnership involves two or more people, so the business cannot use just one owner's Social Security number. A corporation is a unique entity, clearly separate from an individual.

 

Better pretax deductions? Care to elaborate?

 

If you're a corp or llc you pay taxes in quarterly and it's pre schedule C so you're paying more.
On S.P. You pay social security on the bottom line of your schedule C thats after your meal deduction and business use of home if you claim it, ect..
You pretty much deduct everything on schedule C instead of a itemized 1040 you come out lots better. There will be those that say otherwise but I paid
1500 in taxes last year total and didn't fool with all that extra stuff that some here think makes them look more business like.
My goal is to keep as much of my money as possible..... I also plan my income around a certian amount of income of you make to much you only cost yourself more as they take more being broke has it's advantages. I'm hoping next year some big dollar union driver will pay for my obama care insurance.

 

I agree with you but the truth is you can get sued and your personal assets can be looked as part of your total asset worth because you are both the operator and owner of the company, eliminating that protection. A good lawyer will be honest about it, especially if they had been involved with such a litigation. I found after interviewing a number of lawyers, they would give me the line about the protection and offered to set it up for me without any management support of course for a fee but I have found a few who said "I can break any of that protection no matter where it is located.

Where it happens, really doesn't matter because you are still the operator and the owner. Having in a state where taxes are not applied like Alaska, Nevada or Florida can be an advantage if the lawyer and accountant you get are on the same page about lowering the tax liability. AND YES a corporation can offer better tax advantages, it just depends on who is setting up the plan and how it is executed.

 

No advantage to INCing your business if there's one of you. You have to write yourself a check and pay taxes on each pay check and you NEVER get it all back. Schedule C you only pay taxes on the bottom number and you don't have to fool with that quarterly crap and you don't need a cpa to fill it out for you. As to corp protections I sued a corp once along with the officers they got zero protection cause they overseen the business and I got a check.

 

Here's a way to do it take a schedule C and fill it out and see how much you have left to pay taxes on. Then fill out like you have it an Inc. and see how much you pay.
You'll see that it's more advantagous to do the SP thing. Most won't tell you that cause you want need their services then.