1099 but Don't Own Equipment

Hey all,

So this company I'm driving for now classifies me as a 1099 contractor and I needed an LLC. I live in Texas and the company is based in IL. I don't own the truck or make any payments on it, I also don't pay for fuel or any repairs/maintenance. It's their truck. My concern is taxes. They're not taking out anything for taxes and I'm worried about what needs to be done for the end of the year. Am I expected to get nailed with $48,000+ in taxes at the end of the year? What do other drivers in this situation?

 

Your gonna pay taxes plus self employment tax, your part and their part. But you can file a complaint with the IRS and they will have to pay back their part for anyone that the paid on a 1099. The will go back as far as they can and the company will go broke.

 

If you have not been putting money away to pay your taxes, you will get hammered at the end of the year. There are plenty on good paying jobs out there that you get a W2.

 

Tell the IRS you’ve been misclassified and let them go after the crooked carrier.

 

Why are you now just wondering what to do? Did you not understand you have to pay taxes on any money made?

 

Can't believe that someone would create and LLC to drive someone else's truck. Unreal!!!

 

At least it is only March... the damage is somewhat limited.

 

Despite being misclassified, you are now a business owner, and, unfortunately, one without any expenses to deduct. Like a business, you must pay your taxes quarterly or there will be an underpayment penalty.

Also, since you’re an LLC in Texas, make sure you file your annual franchise tax return with the Texas Comptroller’s office. It’s due on May 15th. You shouldn’t owe anything, but if you fail to file there will be a penalty.

 

Why would you drive for a company like this ? Bad driving record ? New in the industry ? Many have chimes in already and basically all have said “Run, Run away ASAP and don’t look back”…….

 

WAIT!! first let's hear the details.

Were you a driver as an employee?

Did you fill out your tax form for them when you started?

If you were then you are still an employee, not a contractor, they have to terminate the employment and then offer you a position with a contract as an IC.