How Much to Set Aside each week for Taxes ?

You could find a CPA or bookkeeper who works with trucking companies and ask them how much you should put back for taxes. If they work with owner operators or carriers regularly, they could give you a closer idea of what you need to save for your taxes.

 

S-Corp may be the way to go. You must pay yourself a "reasonable salary" and the remainder can be considered distributions. The distributions are taxed at a flat 15%, while the remainder will be taxed as normal income. I currently have one set up for a business of mine and it seems to work well. I save quite a bit more than I was previously as a sole proprietorship.

 

I have owned several Sub S Corporations. One of the greatest benefits of incorporating is the potential tax benefits. I receive much more in tax benefits than I pay in corporate taxes and fees.

 

I can only surmise that you are new to the business world and owning your own business otherwise you wouldn't be asking this question. It's asked many times but really there's no stock answer. Only you can figure out how your business is doing. I've read all the opinions and that's all they are as far as I'm concerned....opinions. And there's plenty of those flying around. You have to start thinking like a businessman and not as an ex-employee. Being in your own business takes a different approach, a bit more self discipline.
But what makes you think you owe taxes anyway, at this stage of the game ??
It's probably way too early to start thinking about paying taxes. Again, I don't know your particular circumstance but in the main, there's a great deal of initial investment and expenditures that can neutralize any tax liabilities. You could easily run at a loss for the first couple of years, certainly on paper. That's par for the course.
I think a good start would be to compile a monthly or quarterly profit and loss statement so you can see how you are doing on a regular basis. Especially if you are new, then the last thing I'd be worried about is the IRS. They will get their $$ in due course, but all in good time. Your money is better in your pocket than there's. Don't kid yourself, they know the score when it comes to trucking but they will try every trick in the book to get you to part with your hard earned $$....pay as you earn as they call it. But you can do whatever you want, but I ignore them. I pay taxes all in good time, if any taxes are due. As for penalties for not paying as I go....I could care less. Really I leave it to my guy, once more and I've never had a problem taking care of business at the end of the fiscal year.
But remember, your tax guy is the cornerstone of your business. He's invaluable and can make you or break you so choose wisely.
That's why I pay my guy well. He does his job, which is to file my tax returns every year. I have a 'S' Corp. I trust his judgment. He knows how to deal with the IRS. And as the tax code is so complex, I'm not foolish enough to think I'm skilled or knowledgeable enough to do my own taxes. I've got enough going on with the other parts of the business.
There is nothing wrong with saving $$ and it's wise to accumulate a nice cache of $$ just in case you fall on hard times and have some costly repairs in the offing. There's no real constant in this business. There's too many variables. So I don't try to do "ball park" anything. The IRS can wait for their money, they know it.
It's your business, you may be better to be pretty frugal in spending and try to save as much as you can, in the early stages.
Good luck.

 

OP may have to go through a few CPA's before he/she finds "that" sharp CPA!

 

I was told tonight that I should start paying myself a salary, as well as my wife. By doing this I will get some kind of tax benefit, so I was told but, after reading this thread it seems only if you file as an S-Corp, can you reap the benefits of paying yourself,,,right?

For the OP; I take out 25% from my gross net,,that is what is left after I pay my "Fixed" and "Variable" expenses. I have completed all my accounting for the year and am now ready to file my taxes. I use KR's Profit Gauges and my taxable income is $21,558.72 after all expenses, including per diam...

I was a company driver from Jan-First Week of June Than from 2nd week of June to Dec I am looking forward to filing but, curious as well. My wife has been the tax person for years but, she has never filed business taxes before. I do think it will be easy but, wonder what there is that I don't know, that I don't know.....