LLC on a lease program, Advice? Pointers?

Discussion in 'Lease Purchase Trucking Forum' started by TheChisholmTeam, Oct 30, 2021.

  1. TheChisholmTeam

    TheChisholmTeam Bobtail Member

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    Oct 30, 2021
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    just switch from a company driver to doing a lease program with the same company. I just got my LLC and EIN approved. I run as a team with my Fiancee and everything so far is under my name (for tax purposes) and I'm not sure of the next steps we need to take to be fully compliant, we are based out of KC, MO. we don't run under our own authority, 75% of the loads, $0.12 per mile maintenance plan, loves fuel discount, bobtail and freight insurance is taken out from the settlement each week, all other permits, fuel tax, and apportion license is taken care of by the company. Do we need any other business licenses, additional forms or who in what profession can we talk to to find out what else we need before we can use the LLC officially.

    Right now for the end of the year we are sticking with a pass-through sole-proprietor and then switching to a s-corp for next year so my fiancee can be a w-2 employee instead of 1099. Right move? Or too much for just the two of us?

    Any additional advice or pointers are definitely appreciated, we don't have any family or close friends to ask advice on in the trucking industry.
     
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  3. feldsforever

    feldsforever Road Train Member

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    The s-corp tax election is easy and tricky.
    I don't know about your situation. But as long as your leased to a company that pays settlements weekly. I would not do a 1099.I would jump right into it. His or her pay will go up as the company makes more money. To ping off at about 1k per weeks after taxes plus per diem. Its about a 20 to 25% savings in taxes. But again I don't know your plan. Good luck.
    You asked if its the right move or to much for you too. Thats honestly based on your expected income. If you believe your company will gross 80k plus a year.
     
  4. jackoboyo

    jackoboyo Light Load Member

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    Since there are two of you I think the S-Corp is the best. How you set it up is the question. Ownership? Does one person own 100% of the stock or are you 50/50. One owner and two employees on a W-2. Two owners and two employees on a W-2. This determines how profits will be distributed and what happens if the relationship ends and the team splits up.

    CPA and attorney are a must.
     
    wulfman75 Thanks this.
  5. wulfman75

    wulfman75 Road Train Member

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    If you're filing as an S Corp I would think you both would want to be w2.
     
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