Crossing into O/O land very soon

I'm a sole proprietor. Just an FYI, rates are really low for O/O right now though so come in with plenty of cash reserves to help out until things pick back up.

 

If you plan on having employees in the future ... C Corp. If you plan on just staying on your own a sole proprietorship should work just fine. I'm not up on how Texas treats LLC's you can search google for it. In my state they can be a corp or a sole proprietorship. Also in my state you can start out as a LLC sole proprietorship and transition into becoming a C Corp.

In my opinion there is no reason to do an S Corp. Way to much tax bs just to be "taxed" as a sole proprietor.

My business is a LLC taxed as a C Corp. Corp pays all expenses (drivers salary, bonuses, benefits, equipment, maintenance, business properties, utilities, etc, etc, etc) and I take a paycheck. I pay personal income tax on my salary and bonuses. Whatever is left over after expenses, ie "profit" is taxable for the corp. The corporation does not have to pay social security, medicare, medicaid tax. For my purposes it also lowers my tax bracket and the corps tax bracket. As a C Corp all dividends pulled out of the company are subject to double taxation where the corp has already paid tax on "profit" and the shareholder has to pay tax on the "dividend".

 

Depends. I owned 23 trucks that I ran under a corporation. I owned 3 personal trucks as a sole proprietor. Reasons are for liability purposes only. If you plan on driving the truck yourself then sole proprietorship is fine. You have no shelter. If you have a hired driver then incorporate. If your driver gets into an accident and the equipment has a fault that caused or contributed then your company will incur some liability. Should the driver have any kind of violation ie logbook, then he will have liability as well. It keeps you personal assets safe, but your business suffers the liability. Should you drive the truck yourself then you risk your business and personal asset. Both as owner and driver. I don't care what advice you get about incorporating as a one truck one trailer operation, if you own it the business is liable, if you drive it thenbyour personal assets are at risk. That is the short answer. There are no tax advantages or anything else. It is purely to protect your personal assets from a business failure. If you have any questions ask an attorney.

 

Also as a corporation, certain states, especially New Jersey and a couple New England states have revenue agents that drive around to look for trucks operating in their state and collect revenue on you operating a non licensed corporation in their state. They will go back 7 years on your IFTA as well with subpoena of course and charge you retroactively as well. States are hurting for money still, and taking yours seems like good business to them.