Do most trucking jobs allow you to work using an LLC?

If you're a company driver, most likely you're gonna get on a W-2. Now some companies have the 1099 route, but call them company drivers. They are misclassified. Some of those companies have their drivers get an LLC to cover up the misclassification.

Now if you're W-2 employee, but trying to get paid through an LLC so you can get tax deductions, you potentially can open up yourself to some problems. Your CPA may know all the deductions but you'll need records of all that. Even if you're a "1099 company driver," you still can potentially create problems. A company paying on a W-2, clearly a reputable company, is not about to subject themselves to what appears to be illegal activity.

 

The Chicago based companies will be thrilled to honor your request. In fact, they’ll insist on it.

 

What deductions do you think you or your CPA can legally claim when you don't own/lease the truck? Certainly not fuel, repairs, insurance....And as a 1099 contractor you can't claim unemployment or workers' compensation.
FICA is 7.65% of W-2 gross wages for both the employer (ER) and employee (EE). So if a driver were grossing say 80k per year as an EE then FICA paid by the EE would be $6,120 (80,000 x .0765). As 1099, worker pays both the ER and EE side, double or $12,240. Congratulations, you just paid over 6k more and for what ??? To get some deductions (not credits). You would need a bit over 27k in deductions to recover the extra 6k paid under 1099 even IF the deductions were legal.

 

Only an absolute moron would ASK to become a 1099 driver....

 

You beat me to it!
If he would move to the Chicagoland area, he could change jobs weekly and never run out of 1099 jobs in his lifetime!

 

Be a lease op.
That’s what i’m reading into what you’re wanting.
But you just got cdl.
Maybe schneider will but being CA maybe a red flag.
They’ll probably make you be company driver at least 6 months, which you need a lot more experience that that to be a business owner in trucking.

 

There’s another guy that disappeared from YouTube and social media when the record high rates went away.

 

Humor me, name three things you'll be able to right off as a LLC that you can't currently do as a W2 driver.


Pete

 

Since the OP has an established LLC they may have deductions for real estate loans and other expense under the LLC rather than personal name.

Popular LLC deduction is cost of a room or some square footage as an "Office".

I paid my wife (we are not legally married) a monthly salary which brought down the combined tax bill. That game dropped me down a tax bracket and she paid the taxes on that income at a lower rate. Also increased her reported income and therefore increased her future Social Security check. Also gave her a steady source of income so she could build credit.

Assuming they have enough deductions to justify a long form, they could reimburse themselves the tax free Per Diem many drivers lost visibility of a few years back when the standard deduction was increased.