Input Wanted on Small Business

Discussion in 'Ask An Owner Operator' started by ihford350, Jan 15, 2010.

  1. Gears

    Gears Trucker Forum STAFF - Gone, But Not Forgotten.

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    ...but I think a PC can.
     
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  3. Roadmedic

    Roadmedic Road Train Member

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    A pc is a corporation.
     
  4. ihford350

    ihford350 <strong>The Grease Monkey</strong>

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    So i get that this has no upside for me, i would like to thank you guys for your input, im wondering now what your thoughts are as to the two different types of deductions and which one most truckers use.
     
  5. RickG

    RickG Road Train Member

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    That question is too complicated to be answered here . Most members aren't qualified to answer even if they knew all your info . Your best bet is to find a god CPA or enrolled agent . They are well worth the fee they charge . They can back you up if you have a problem with the IRS but if you use them it's not likely you will have a problem .
     
    ihford350 and Roadmedic Thank this.
  6. Cowpie1

    Cowpie1 Road Train Member

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    The only benefits of incorporation is to decrease personal income tax and reduce social security/medicare tax payments. For a solo operation, no real advantage unless you got a grip of money coming in from elsewhere and the trucking business in a hobby. You still have to deal with corporate tax rates. By incorporating, you could avoid some taxation by paying yourself via bonuses at end of year or quarter and avoid self employment tax on it, but if you are not already paying yourself a realistic average salary for a truck driver, the IRS will give you a barbed wire enema in penalties.

    The LLC is viewed by the IRS almost the same as a sole prop or partnership would be anyway. Full incorporation is just not that cost effective or beneficial. Some argue that incorporating will save you and your personal stuff from lawsuits. That is unrealistic. Since you are the CEO of the corporation, they can go after you just as easy for business decisions you make or, since you are the driver, they can mess your life up just like any other driver. Just ask the former executives at Enron. Remember that Bernie Madoff who swindled all those investors out of billions was the CEO of his corporation. Where is he sitting now?
     
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