NEED INFO ASAP! !! what is a "k 1" ?

One other thing to consider regarding a K1 is that it is a document that details your share of the taxable income for a company, which you are responsible to pay taxes on regardless of whether you receive any $$ from the company. And again, this has nothing to do with being paid as a driver.

 

my point was this, if they explain it to you in a manner you could understand then something is up. and you have answered your own question, someone is lying to you , screwing you, and dancing around to make it sound good. when they couldn't or wouldn't, you in reality already had your answer. walk away

I think this just may be folks trying to get around the 1099 issue, by making everyone a partner , and making them pay the taxes on a k-1.

a new scam it would seem.

 

I've never been an O/O, but I can tell you that you have the right ideas here. Anytime somebody is trying to "sell" you something, (whether it is a used car, a job, an insurance policy, whatever,) and they can't provide useful information, something is wrong. This "I'll check" or "let me transfer you," without giving you any legitimate answer to a legitimate question, should raise all kinds of red flags!

 

If they are compensating you as a partner, you also are likely to become responsible for any liabilities the partnership incurs. For example, in typical partnerships, if their are ten partners and the partnership goes bankrupt, each and every partner isn't just liable for 1/10 of the total liability, each partner is separately liable for up to 100% of the total liability. I personally would stay away from this even though it may sound like a great opportunity UNLESS you understand partnerships, have a partnership agreement, AND have a lawyer review and explain everything. Otherwise, good way to lose your house, your dog, and everything else you own if the partnership goes belly up.

 

Texan59 is correct. A K1 is given to each partner at the end of the year. I've dealt with several of these and it does make for a much more complex tax situation. First of all you actually have to be a partner, signing legal documents that make you a partner. This usually also requires that you are an investor and have liability for any losses the company incurs. By no means would you ever enter into such an agreement without having excellent legal council to review the agreement(s) before signing them.

A 1099 on the other hand would be issued by a company to someone that is hired, but not exclusively working for the company. I've received 1099's from companies that paid commission to me for representing their interests managing overseas production, but I was not employed by them. At any one time I had several clients.

It sounds to me that if the trucking company is seeking to "hire" you and is offering you a K1 instead of a W2 or even a 1099, then that's a massive bait and switch scam. Be extremely careful of what you are asked to sign. You'd better be compensated as a true "partner" with a partner's share, and as a partner you should be privy to all partner financial statements, minutes of meetings, etc.

Any driver that accepts a 1099 is also on the losing end of the stick. Ask your CPA before entering any employment contract that gives you a 1099 and asks you to be an independent contractor. Almost by definition of the IRS a truck driver who's "freedom of action" is controlled by the company is NOT an independent contractor.

See the following:

Independent Contractor Defined

Independent Contractor (Self-Employed) or Employee?

You need to establish your own business and payments from the company that gives you a 1099 must be written to your business, not to you personally.

 

I like k2 before it was illegal to have on you. K1 is something totally different that I have never heard of.