Is it possible to work as a company driver and trucking company issues my personal company the driver pay instead of me directly? This would make trucking company save on medical, dental, vision insurance etc for the employee since my company would be on 1099. Also, it would benefit me immensely in my taxes.
I know some small companies do this but not sure about mega carriers. Any input will be much appreciated.
Do Mega Carriers Hire On 1099?
Discussion in 'Questions From New Drivers' started by Gabru, Mar 18, 2017.
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Let's assume:
ABC is the Mega Carrier
AAA is my LLC
SAM is the President of AAA LLC
Now, ABC hires AAA and assigns a truck instead of SAM. AAA makes SAM drive the truck for ABC since the driving has been subcontracted to AAA by ABC. This is like an IT consultant who hires people on 1099 and places them in a company. It happens all the time. I know some small mom & pop trucking companies in Canada do this. -
@Chinatown, he might know..Gabru Thanks this.
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So you want the driver to take the full hit on taxes instead of you putting them on as drivers and paying part of their taxes... plus not giving them any benfits sign me up not
HalpinUout, driverdriver and MJ1657 Thank this. -
@passingthru69
you didn't read the whole thing I believe therefore misunderstood my point completely.
I am the driver and I don't want to be on the payroll of the mega-carrier and instead, I form the LLC and that LLC works as 1099 for a mega carrier. This way my LLC can show expenses for the company and pay very limited to almost no taxes (after company expense deduction) as an S-Corp. -
I think they call that tax evasion. Just a means of avoiding withholding tax. Any deductions you can take as an llc you can take as an individual and the bottom line will be the same anyway. So what would be the point?Lepton1, RollingRecaps, brian991219 and 1 other person Thank this.
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Try Carolina Logistics. All their drivers have LLC and paid on 1099.
I can't really give advice on that subject other than that.
@Sam Bhullar - not sure, but I think Carolina Logistics helps drivers set up an LLC and buy the truck and supplies the freight.Last edited: Mar 19, 2017
Gabru Thanks this. -
Why would you want to? As @LandslideRich said, any deduction you can take as an LLC, you can take as a driver. Plus you will be paying the employer's share of FICA and Medicare taxes. You will come back and say "I'll pay myself less than the mega pays the LLC. Therefore, I'll save in those taxes." The problem is you have to pay yourself a reasonable wage. The megas don't pay a reasonable wage, so how do you expect to pay yourself and have your LLC have a profit?
If you're dead set on it, most of the have a fleece purchase deal. Then, it could be argued you are an IC.brian991219 Thanks this. -
You may want to term it as tax evasion. Your choice, not mine. But it's the loopholes that the Government has provided for all the citizens alike. This is perfectly legal and people all the way to the top from Bill Gates to Warren Buffet to Donald Trump and millions of others do that on a regular basis. Everyone should take advantage of the laws meant for us. These loopholes are there for a reason.Bean Jr. Thanks this.
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