LLC or INC

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

  1. Sep 20, 2020 #1
    selinrosa

    selinrosa Light Load 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?
     
    selinrosa, Sep 20, 2020
    selinrosa, Sep 20, 2020
    #1
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  3. Sep 20, 2020 #2
    Spyro2112

    Spyro2112 Medium Load Member

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    LLC
     
    Spyro2112, Sep 20, 2020
    Spyro2112, Sep 20, 2020
    #2
  4. Sep 20, 2020 #3
    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.
     
    Accidental Trucker, Sep 20, 2020
    Accidental Trucker, Sep 20, 2020
    #3
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  5. Sep 20, 2020 #4
    selinrosa

    selinrosa Light Load 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.
     
    selinrosa, Sep 20, 2020
    selinrosa, Sep 20, 2020
    #4
  7. Sep 20, 2020 #5
    abyliks

    abyliks Road Train 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,
     
    abyliks, Sep 20, 2020
    abyliks, Sep 20, 2020
    #5
  8. Sep 20, 2020 #6
    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.
     
    Accidental Trucker, Sep 20, 2020
    Accidental Trucker, Sep 20, 2020
    #6
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  9. Sep 20, 2020 #7
    ichudov

    ichudov Heavy 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.
     
    ichudov, Sep 20, 2020
    ichudov, Sep 20, 2020
    #7
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  10. Sep 22, 2020 #8
    Judge

    Judge Road Train Member

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    Same.
    LLC taxes as S Corp.
     
    Judge, Sep 22, 2020
    Judge, Sep 22, 2020
    #8
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  11. Sep 22, 2020 #9
    TallJoe

    TallJoe Road Train Member

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    For a solo: 1 truck & trailer, the difference is insignificant in practical terms.
     
    TallJoe, Sep 22, 2020
    TallJoe, Sep 22, 2020
    #9
  12. Sep 23, 2020 #10
    Midwest Trucker

    Midwest Trucker Road Train Member

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    I’m LLC taxed as S Corp as well.
     
    Midwest Trucker, Sep 23, 2020
    Midwest Trucker, Sep 23, 2020
    #10
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