What is the difference between opening ur comp let's say in wa vs tx? I live in ca and I own a property in az. Insurance is higher in ca so if I open my comp based in the state of az(cheaper ins) live and operate my truck in ca is there something wrong with that? P.S. I want to become o/o in Ca will they look at my plates and say no it has to be registered in CA? I want to haul across the country come home once a month.
If you have property in AZ, then I think you can register the truck there, but the plates will cost pretty much the same whether you live in AZ or CA. You have to pay for apportioned plates for each state you go through. If you get plated for all 48 states, then it might be around $2,000, and each state will get a different % of that money. If you get your own authority, you should put the business in the AZ address for tax purposes, and then you'd probably need to change your driver's license to AZ also. If you start a corporation, you can have the corporation based in AZ, and hire yourself as a driver in CA. You will pay your income taxes to CA but whatever you leave in the corp will be taxed as AZ. But make sure you don't embezzle from your own corp, the IRS will find out. As in, whatever you pay yourself from your profits, make sure it's documented in a paycheck. If you just go sole proprietor or LLC, well then I'd just have all of it set up in AZ, including your license, and just go home to CA whenever you feel like it. Make sure you don't have a CDL from more than one state, you'll have to surrender the old one.
BoyWander is correct. It depends if you are incorporated and/or have your own authority. However, I agree with him. If you're going to chose between CA and AZ, go with AZ. As well, make certain that your truck is registered with the CA Clean Air Act so you can take the vehicle into CA.
I was planing to find a comp in CA and work for them as o/o use their authority. What's my best choice in this case?
California: Tax Rate Range: Low 1.0%; High - 12.3%. For 2010 the state has enacted a 0.25 percentage point increase in each of the states income tax brackets. A tax credit for dependents was reduced from $309 to $98. Income Brackets: ** Lowest $7,455; Highest $48,942 Number of Brackets: 6 Personal Exemptions: Single $102; Married $204 Tax Credits: Single - $99; Married $198; Dependents $315; 65 years of age or older $99 Standard Deduction: Single $3,769; Married filing jointly $7,538 Medical/Dental Deduction: Same as Federal taxes Federal Income Tax Deduction: None Retirement Income Taxes: Social Security and Railroad Retirement benefits are exempt. There is a 2.5% tax on early distributions and qualified pensions. All private, local, state and federal pensions are fully taxed. Arizona: Tax Rate Range: Low 2.59%; High 4.54% Income Brackets: * Lowest $10,000; Highest $150,001 Number of Brackets: 5 Personal Exemptions: Single $2,100; Married $4,200 with no dependents, $6,300 with one dependent; Dependents $2,300; 65 years or older $2,100 Standard Deduction Single: - $4,703; Married filing jointly $9,406 Medical/Dental Deduction: Allows deductions for all qualified medical and dental expenses. Federal Income Tax Deduction: None Retirement Income Taxes: Social Security and Railroad Retirement benefits are exempt. Up to $2,500 total of military, civil service, and Arizona state/local government pensions are also exempt. All out-of-state government pensions are fully taxed. I'd definitely change your residency to Arizona if you can. Taxes seem WAY higher there in California. 12.3% income tax on anything over $48,xxx? I don't think so.
