how to pay yourself?

not if he is a sole proprietor and doesn't have it incorperated. he can only draw a paycheck if it's incorperated. since he's the sole propretor then all the money is his and there is no company to pay him. you probably just set up the company account under a DBA (doing business as) which means it's his accoutn and it's authorized to accept checks written to the company name.

 

there is no point to keeping it seperate if he isn't incorperated. There is no legal seperation that would prevent anyone from sueing you for it so why seperate it? unless he plans to incorperate and is just getting things lined up.
You say he is leasing the truck from them and you say he owns the truck. Is this a lease purchase program? if so then he doesn't own it, the company does. The word Lease is thrown around this industry so much you never know how someone is using it

 

There are indeed reasons to have an ID number. When you are a business and you pay someone more than 600.00 for services such as a mechanic or contract labor, you are required by law to send them a Form 1099. To send such a form, a ID number is needed.

Many people also use a separate number as a way of keeping the accounts separate. It is a good idea under IRS scrutiny to have a separate account and if it has a name different from the owner, then the ID number is used.

 

I meant no reason to have the seperate business acount not that there was no reason to have a tax id number.
I just dont' see the point of having a seperate account when legally there is no seperation anyways.

 

IRS says that in order to take losses, you should show business intent. This includes the separation of the account from your personal checking in order to reflect the intent to make a profit.

 

having a separate account for yer business is a good idea, a savings account attached to the business account is a good way to keep yer taxes separate from yer business account. especially if yer married.

 

rdkatwell said the company deducts the truck payment from their settlements. so I would say company owned truck or fleece operator.

 

exactly what I firgured which means he doesn't own the truck and this is all a moot point. the taxes are different for someone leasing a truck the they are for someone who owns it. it at least changes the whole discussion. Although I'm not real up on the tax implications of such

 

The tax implications are the same whether it is owned or leased. It is still treated as self employment income. The entire issue of the separate account is still the same as whether an O/O as you are thinking.

 

you like bustin my chops don't ya! lol I'm just messing with ya. Where do the differences come in, in depreciation of equipment?