Truckers Report Jobs

Find Trucking Jobs

Company Driver Company Driver Dry Van Dry Van Flatbed Flatbed Refrigerated Refrigerated Specialized Specialized Owner Operator Owner Operator
More Trucking Job Searches ⌄ Fewer Trucking Job Searches
⌃

LLC Sub S

Discussion in 'Trucker Taxes and Truck Financing' started by Triple Digit, Apr 13, 2018.

  1. Apr 13, 2018 #1
    Triple Digit

    Triple Digit Bobtail Member

    18
    5
    Dec 19, 2015
    0
    Looking for some advice... Doing a LLC and going to have to chose filing as as a sub s or not with the IRS. Not paying FICA on the dividends is a plus but is all the extra forms needed when filing and such worth it? Thanks in advance
     
    Triple Digit, Apr 13, 2018
    Triple Digit, Apr 13, 2018
    #1
  2. Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  3. Apr 13, 2018 #2
    JoelP

    JoelP Bobtail Member

    19
    23
    Jan 27, 2018
    0
    Depends on how much you net. Previously anything more than about $55-$60k net back to you was worth it. With the new 20% QBI deduction, might be closer to $75k-ish. And you could argue it makes sense at numbers less than that, but that’s a safe guesstimate not knowing anything else about your situation.
     
    JoelP, Apr 13, 2018
    JoelP, Apr 13, 2018
    #2
    Triple Digit Thanks this.
  4. Apr 13, 2018 #3
    ast26909

    ast26909 Medium Load Member

    408
    263
    Mar 1, 2018
    0
    You should do a single-member LLC, taxes for the LLC will be filed on a separate schedule under your personal tax return. A LLC is its own entity, it's like a person in name only it can open bank account, credit card account, own property... After the LLC filling you should open a bank account and credit card in the LLC name, use the bank account and credit card for all LLC expenses NEVER use your personal bank account or credit card for anything related to the LLC. If the LLC needs money write a personal check and deposit it into the LLC bank account that would be your 'investment' into the LLC, you MUST keep the LLC and your personal financials separate. Also get an EIN number for the LLC you can get it online from the IRS website, use the EIN number for all LLC tax related matter NEVER use your personal SSN.
     
    ast26909, Apr 13, 2018
    ast26909, Apr 13, 2018
    #3
    RoadRacer and truadvocate Thank this.
  6. Apr 14, 2018 #5
    kathyegan

    kathyegan Bobtail Member

    13
    4
    Feb 6, 2018
    0
    Schedule Cs get audited more frequently than S Corps, in my experience. In an S election, you are expected to pay yourself a reasonable salary, and pay into social security and Medicare. Many drivers find it far less painful to pay taxes through payroll withholding throughout the year than try to remember quarterly payments. There are other benefits to S elections too.
    If you already have your LLC and EIN, it only takes two short forms, we set these up all the time. However, the deadline to apply for an S election for the year when you are an established LLC is February 15.
     
    kathyegan, Apr 14, 2018
    kathyegan, Apr 14, 2018
    #5
  8. Apr 14, 2018 #5
    Triple Digit

    Triple Digit Bobtail Member

    18
    5
    Dec 19, 2015
    0
    Thanks Joel. I’m on the fence with the S Corp election. I’m hoping to throw most of the $$ (2 income household) at paying off the equipment so not sure the S Corp will be worth the hassle some say it is when filing. I’ve thought about making the election and not worrying about the “salary” as long as I don’t take any dividends payment to myself.
     
    Triple Digit, Apr 14, 2018
    Triple Digit, Apr 14, 2018
    #5
  9. Apr 14, 2018 #6
    Triple Digit

    Triple Digit Bobtail Member

    18
    5
    Dec 19, 2015
    0
    Thanks. As a o/o either way I have to deal with the yearly payments to the IRS. I’ll have to move $$ to a separate account to do the business withholding with the S Corp election and my own withholding from my weekly/biweekly check. Or no S Corp and still have the quarterly... I’m purely looking at the dividend payments with no FICA withholding and dealing with the mandatory reasonable salary vs not dealing with the the S Corp election altogether...
     
    Triple Digit, Apr 14, 2018
    Triple Digit, Apr 14, 2018
    #6
  10. Apr 14, 2018 #7
    kathyegan

    kathyegan Bobtail Member

    13
    4
    Feb 6, 2018
    0
    The term “reasonable” is deliberately ambiguous. “Reasonable” for a trucker given your cash flow needs. Many of my truckers just pay themselves enough to cover taxes.
     
    kathyegan, Apr 14, 2018
    kathyegan, Apr 14, 2018
    #7
  11. Apr 14, 2018 #8
    Caseli

    Caseli Light Load Member

    86
    65
    Apr 5, 2018
    0
    That's how Im set up. Heres a great laymans explanation.

     
    Caseli, Apr 14, 2018
    Caseli, Apr 14, 2018
    #8
    Yoyoredrum, RoadRacer and Triple Digit Thank this.
  12. May 11, 2018 #9
    Banker

    Banker Road Train Member

    3,704
    9,873
    Aug 19, 2012
    0
    This is a great explanation! How often do you do payroll and what do you pay for the service?
     
    Banker, May 11, 2018
    Banker, May 11, 2018
    #9
  • Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.