Company driver 1099 help

If you form Corp, usually an s Corp you claim the max allowed as pay in dividends. That pay isn’t subject to the roughly 15% that’s evenly paid by employers and employees on W2. This results in lower tax due, the actual amount you’ll pay may be more or less, depending on the exact numbers and percentage allowed as dividend pay. The down side is less total amount paid into SS for retirement. That May affect the amount of your SS check when you retire. Tax laws change every year. That’s my VERY rough understanding. Actual details, numbers and percentages are unknown. Those questions need to be answered by a CPA, and retirement planner.

 

FWIW, saying you are a "Company 1099 driver" is an oxymoron; there are only company drivers and 1099 drivers. They are mutually exclusive. You are either one or the other.

 

No, $3000 to the IRS is a stupid amount of money. I’m just sayin. I pay $450 to get my taxes done. Worth every penny compared to some of the horror stories I hear.

 

If a new 1099 driver under-pays the IRS by $300 in a year, the IRS will wait 2.99 years and bill him for at least $3 grand due in 30 days. Any money spent on an accountant or bookkeeper to setup quarterly tax payments will save him a ton of cash & grief later. He'll likely only need professional tax help once or twice & then be able to use software to stay on track. Nobody spends more money than someone trying to be too cheap.

 

WTF? It ain't 1955 anymore, buddy! That's actually kinda cheap for a CPA consultation. Stop being a skinflint, or else just bend over and take whatever they give you. The choice is up to you.

 

There’s no need to start a business or file an LLC for one person to drive a truck for someone on a 1099. Just run it as a sole prop. You won’t be profiting enough to make a huge difference on your taxes and the LLC doesn’t protect anything if you’re the driver and get into an accident.

 

Have you done in internet search on your question? I usually use Duckduckgo.com and then YouTube. You need both because lots of YT videos are "I'm ignoring the rules & getting away with it by X." You want someone that is following the rules, so don't follow bad advice." There are thousands of people doing ANYTHING you might do. Look for the people that have done it for years without problems.