Forms of Ownership

Discussion in 'Trucker Legal Advice' started by Mr. PlumCrazy, Sep 9, 2009.

  1. Roadmedic

    Roadmedic Road Train Member

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    I would have to disagree with score here.

    Number 1. You are a business entity. You are required under the IRS rules to provide a 1099 to any and all business entities that are not corporations for services rendered during the year. This includes anyone that worked as labor charges on your truck.

    You cannot meet the obligation of the 1099 rules without having a employer ID number. As far as form 720, I have not looked at it yet, but I can if you want.

    I am an enrolled agent to practice before the IRS and have done returns professionally since 1982.
     
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  3. Cowpie1

    Cowpie1 Road Train Member

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    I would agree that going the Corp or LLC route as a sole proprietor is not worth the trouble. You will go down either way if some aggressive lawyer for the law firm of Burn em and Run decides to target you. The primary advantage of going the corp route is for tax purposes and most O/O with 1 truck will not see any benefit. That is where a CPA can give you advice. You can start as a sole proprietorship and then change later to a corp or LLC as your situation changes. It is more difficult to go the other direction.
     
  4. JasonTheRock

    JasonTheRock Light Load Member

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    No its Dewey, Cheatum, and Howe!!!!:biggrin_25523:
     
  5. Cowpie1

    Cowpie1 Road Train Member

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    I thought there was another law firm doing the same thing!!! :)
     
  6. Gears

    Gears Trucker Forum STAFF - Gone, But Not Forgotten.

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    I've spent the greater part of my life being self-employed and/or being paid commission. I have never had to have an EIN for 1099 purposes. Never.

    I registered my transportation company as an LLC, me as the only member. I started it as a sole proprietorship, using my SS number for everything but that changed as you MUST have an EIN for your 2290 filings. SS numbers are not allowed.

    I the LLC route as it was easier to set up and maintain. Whatever you do, just don't co-mingle $$ between your pocket and the company. If there's ever an issue and this is discovered, your corporate veil has just been pierced and it's easier for folks to come after you personally, regardless of having a corp or llc in place. Saw it happen to a friend:biggrin_2552:
     
    rookietrucker Thanks this.
  7. Mr. PlumCrazy

    Mr. PlumCrazy Road Train Member

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    Thanks all I see where it do require you to have a EIN on Form 2290 that's why I was questioning it
     
  8. lowbudget

    lowbudget Medium Load Member

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    Old thread, I know.

    Is it possible to acquire an EIN without incorporating? I would much rather run as a SP than an LLC. Am I wrong?

    EDIT: I will be leasing to a company. I hope to eventually get my own authority someday, but not now.
     
  9. JasonTheRock

    JasonTheRock Light Load Member

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    Yes, go to the IRS website and apply for one its easy.
     
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