How much to pay ourselves

I'm not sure I understand all this. Wouldn't you still have to pay taxes on profits the company made? Why wouldn't someone pay himself 10k a month?

 

Like Old Man said it boils down to the self employment tax (AKA Social Security Tax). Company doesn't have to pay it, employee does. So the employee should make the least amount possible while still looking legit to the tax man in order to minimize the self employment tax hit.

 

Save money for maint or new equipment if the money stays in the corp you don't have to pay self employment tax, take it as wages and pay twice.

I know several so call truck accountants that don't know what their doing, to find someone that knows business and trucking is not easy. Some know less than the drivers at the TA counter of knowledge

 

Not quite right - as the ‘company ‘ pays the equal amount of FICA as the employee.

The whole point of LLC ‘s’ Corp is to reduce the FICA burden - from the entire profit, to just the wage.

@Midnightrider909 - ensure you get this step right - most of the advice above is very solid.

We - pay the driver (me) - 40cpm on all miles. That’s all we need and don’t take draws.

Your income needs may be different - so you may need to take draws.

DO NOT SKIMP on an accountant. Ask others and interview as many as needed till satisfied they know their poop. Changing CPA’s is a headache.

 

I dont think it will.

I made $78k my last year as a company driver. As O/O I dont show myself earning more than $30k.

Never have any IRS issues.

Hurst

 

I pay myself a flat salary of $850 per week and my drivers 25% of the gross. Most weeks, they double my pay if I do my job properly. One of the best tax shelters is reinvestment in the company.
Maintenance and new equipment will drastically reduce paying the man at the end of the year.

 

Yeah I agree.

I bought a fleet a few years back and they used a highly recommended firm from the radio, the accounting was so screwed up, it took me a while to get it profitable.