How do you pay yourself.

I like the KISS method "keep it simple stupid" I am a sole proprietor. There is no difference between my money and the business money. I keep good records and pay income tax on the profit and self employment tax on the profit.

The profit is mine, I don't have to justify how it went from business to personal

 

I'm setup that way because as far as the gub mint is concerned I'm just a $35k a year truck driver...lol, just like as if I was working for someone else as an employee making $35k - $40k a year.

 

S corp distribution tax on profit is 15%. A lot less than paying federal income tax, state tax and SE tax on that portion.

Other than that, carry on

 

That's pretty much what I have been doing. Has been working well for me.

 

I go through ADP for me & my employees.

 

A one truck guy who drives it himself just need the be sole proprietor, don't know why some guys complicate things

 

Thats how I do it. Except I dont think I pay as much in taxes as you. I pay a CPA to do my books. My wife is self employed as well,.. so we do not do our taxes jointly. CPA has enough smoke coming out of his ears breaking mine down. Takes him 3 weeks to complete mine.

Hurst

 

It shouldn't take more than an hour if you file your receipts and expenses in some sort of organized fashion. I pay someone a $100 every year to do my taxes because it's a friend with a tax business. I could do them myself no sweat. Put me in the one truck guy sole proprietor is all you need to be club.

 

It takes me more than an hour just to collect and organize the receipts and paperwork.

Plus its 3 weeks to do mine and my wife's,.. so technically 1.5,.. I should have been more specific.

He calls me at least 30 times the first few days with questions as to what I did,.. what a receipt was for or what a specific expense was if the receipt is not legible. We use my logs as days out for perdiem. Thats a time consuming mess right there.

Hurst

 

Someone can do all their taxes, including all the other ancillary filing requirements of a trucking company for a hundred bucks a year? I'm impressed