Lease Op question

Discussion in 'Lease Purchase Trucking Forum' started by Gabe2790, Jun 16, 2021.

  1. Gabe2790

    Gabe2790 Light Load Member

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    Hello everyone. When you lease through a carrier, can you do it as a business such as an Llc or S Corp like an owner Op would on their own, or does it have to just be on your personal SSN?

    I have read through several threads here and I know that most replies are about how dumb and evil lease ops are; I get it. No need to respond merely to bash that business model.
    Thanks everyone!
     
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  3. Cat sdp

    Cat sdp . .

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    You need a ein number and can do it as sole proprietor .
     
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  4. Crazytrucker77

    Crazytrucker77 Heavy Load Member

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    Yes you can run your own business through another carrier all you do is get a separate EIN number as suggested by the previous comment. I run my own business leased on to a carrier and formed an LLC S corp. Been doing it for 4 years
     
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  5. Gabe2790

    Gabe2790 Light Load Member

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    Just to be clear, are you doing lease purchase through your carrier?
     
  6. Crazytrucker77

    Crazytrucker77 Heavy Load Member

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    I lease my truck through the carrier. I'm not doing a lease purchase. You can still set up a business name while leased onto a carrier. How you have your equipment doesn't mean anything when it comes to establishing the business. It's just being an independent contractor 1099. The only difference between what I do and what you're looking into is how you write that off as an expense for the business. Because I am not purchasing the truck I write off the full lease payment every month as an expense. When you are doing a lease purchase you will depreciate the value of the truck at the end of the year when you do your taxes for a certain amount of years. The main reasons people establish a business when they're an independent contractor is so they can get better tax rate on their net income and to establish business credit for future purchases.
     
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  7. Short Fuse EOD

    Short Fuse EOD Medium Load Member

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    If you are sole proprietor you don’t need Ein, (just use ssn) unless you want to file 2290 electronically. Currently IRS is recommending electronic due to a backlog of paper.
     
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  8. Gabe2790

    Gabe2790 Light Load Member

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    I’m wanting to do it as an S Corp and be building business credit while doing the lease purchase. This way I think it would be easier to actually purchase a truck with conventional financing.
     
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  9. Crazytrucker77

    Crazytrucker77 Heavy Load Member

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    So I will tell you that if your net income is below 65k then file as a sole proprietor. 65k is kind of the break-even point on the tax savings versus extra expenses for the s corp. Honestly if you're going to do this before the end of the year I wouldn't worry about an s corp until next year. Just make sure to establish your business name with an LLC right away. I changed mine after 6 months to add the LLC to it and it made it look like I just started a new business. So I technically had been in business for two and a half years before any creditors would deal with me at all. Most creditors want you to be in business for 2 years before they will deal with you. Feel free to private message me if you have any questions I will do my best to help you.
     
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  10. Crazytrucker77

    Crazytrucker77 Heavy Load Member

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    Basically I have mine set up as a single member LLC S corp. I have an accounting firm that does all of my payroll and bookkeeping as well as taxes. I don't do any of that BS. One thing to think about is the fact that you have to be on a payroll to be an s corp. If you file as a sole proprietor you do not have the added expense of payroll because you don't have to be on one.
     
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  11. Gabe2790

    Gabe2790 Light Load Member

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    I really appreciate the info. I will be in touch
     
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