Finally got my own truck

What you are missing is to lease the truck to wonder move for the amount of the payment for the remaining months you have left. You set up a lease and sign it must be detailed has who makes repairs and pay all fees and a termination clause. The payments will be rental income to you which is not taxed. I'm NOT a tax person disclaim all of this information go see your tax person to see if this will work for you.

 

Yeah I suppose this is another way to siphon money out of the corporation without paying payroll tax...didn't think of that one. Not sure if that's legal though. I really hate making things more complicated though. If I did that, and I'd be paying the corporation $50,000/year to lease the truck and paying the insurance, maintenance, repairs, etc. I'd reduce my personal tax liability to basically 0. I'm not sure if that would fly, but I'd have to ask my CPA about that. I could save 3-4 grand a year in taxes. Hmm.....

 

My LLC requires me to pay myself an income based on industry avg in trucking.

Im a single member llc. So i drew up a operating agreement stating how much i would pay myself to my personnal bank acct from my business bank acct. I also put a clause in it to loan myself monies from my business acct at a % rate which i can pay back to the business acct within 90days. The % rate i used is 7% interest. Ive never borrowed any money from it but the option is there.
The key is to seperate yourself from the business as much as possible for legal reasons. If your business is sued you dont want them taking your personal assests a lawyer will go after them . Under a single member llc its easy for them to do that. If you have multiple partners of the llc it becomes harder due to the fact the monies are distributed among different members not just 1 like a single member llc does . Also make sure you have a registered agent .You can make yourself the registed agent but the down fall is you will have your business address the same as your address which gets posted everywhere online . So seperate the 2. My registered agent cost 99.00 a yr. Well worth the extra security .

By having a registered agent all documents junk mail lawsuits etc go to the agent first then to you. That blanket of security is well worth 99 yr. Otherwise anybody can look up your business name online because your registered with the state you live in and get your address very easily.

Check out "All up in your business" on you tube . alot of info for setting up Llc.

 

If you are also the driver nothing will protect your personal assets. A plaintiff will sure the llc as the trucking company, and you personally as the driver.

There is a long track record of cases supporting this, but the easiest thing to see it for yourself is simply google any of the headline making accidents such as the tracy morgan walmart accident. Wal-Mart was found liable for x dollars, the driver was found liable for y dollars.
The point is, the only protection llc or incorporating gives you is if one of your other drivers is involved in an accident.

 

So if you're single member LLC, they will sue your company and yourself, as you're driver employed by your company.

 

Basically yes. If you are driving the truck and they can make the arguement that driver error caused the accident you will be sued. This goes for all drivers, not just owner operators. For most guys this doesn't matter cause they don't have any assets worth going for, but if that's the case then why bother with an llc at all?

 

I incorporated so I can go on Shark Tank and convince Mark Cuban to buy a 15% equity in my company for a mere $500,000.

 

Why do that, when you could enroll in Trump University and become fabulously wealthy overnight?

 

Lol.

I have one of his books in my storage unit. The Art of the Deal. You know, the same tactics he used when he was schmoozing with the ATA.

I was about to hire this guy, and then boss said no, PSP scores were too high. I put more ads out. About to go back on the road myself. Don't wanna do it solo, though.

 

Nobody plans on having an accident. The tax structure itself is cause for having an LLC.