LLC or INC

Discussion in 'Ask An Owner Operator' started by selinrosa, Sep 20, 2020.

  1. selinrosa

    selinrosa Bobtail Member

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    I know it might be too late to ask since i already registered my LLC, but still want to get some ideas from you experienced O/Os. I know LLC is paying higher taxes, but managing an INC seems more complicated & needs CPA do payroll stuff. Which one is a better choice for a 1-tuck business?
     
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  3. Spyro2112

    Spyro2112 Light Load Member

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    LLC
     
  4. Accidental Trucker

    Accidental Trucker Road Train Member

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    LLC does not pay higher taxes. As a matter of fact, both my LLC's are taxed as Sub S. Corporations, by my election at filing.

    LLC is almost always the best choice.
     
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  5. selinrosa

    selinrosa Bobtail Member

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    As i was doing some research, i noticed this option too. But do you have to choose taxed as s-corp when filing your business? or is it possible to make any changes afterwards? thanks a lot.
     
  6. abyliks

    abyliks Medium Load Member

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    Llc you can file as an s Corp, if you are owning and driving the one truck you can even do sole proprietorship,
     
  7. Accidental Trucker

    Accidental Trucker Road Train Member

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    You make the election at filing (sole proprietor, S-Corp, C-Corp), and I vaguely remember that you can change it once? Get professional advise on that one. Generally, being taxed as an s-corp is preferred because it allows you to pay yourself a base salary and take any additional distributions from the company as dividends, avoiding Self Employment taxes on that portion. C-corp election would get you into double taxation issues (corporate and individual income taxes), so that is rarely used.
     
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  8. ichudov

    ichudov Medium Load Member

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    I have a S corp for 22 years and it's been great. Pass thru taxation, lots of freedom, etc. I own 100% of it and do literally whatever I want, nobody tells me what to do or not to do.
     
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  9. Judge

    Judge Road Train Member

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    Same.
    LLC taxes as S Corp.
     
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  10. TallJoe

    TallJoe Road Train Member

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    For a solo: 1 truck & trailer, the difference is insignificant in practical terms.
     
  11. Midwest Trucker

    Midwest Trucker Road Train Member

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    I’m LLC taxed as S Corp as well.
     
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