New Owner Operator; What to ask CPA?

That maybe true how much taxes does it actually save what percentage.Usually when guys leave out information as you did here when you state the tax savings is worth the cost to form the LLC and you didn’t mention the cost of filling two separate tax filings every year 1 for you and 1 for the LLC now how much are you saving.If it’s a minimum savings I would rather the money go to boosting the social security payments.

 

What part of Cali., are you from ? I’m in the So. Side. Are you guys doing Skateboarding or Door slamming ?

 

The savings are easy.to figure An LLC tax filing runs between $1,000 and $1,500 for an OO. Per diem tax savings depends on days out, State income tax and federal income tax rates. But, for example, for an OO in tthe 20% Federal tax bracket, in California, out 100 nights a year, the per diem deduction would be roughly $6,500 X (0.2 + 0.093 + 0.153) or $2,879.50. The savings in self employment tax for an 0/0 filing taxes on $100,000 is, for example, $40,000 * 0.153, or $6,120. Those savings increase if you are away from home more or earn more.

 

You don’t need to file LLC to get the per diem on your taxes a sole proprietor can take the same tax break I’m not sure why you referred to that.You save some on your self employment tax that would probably depend on how you pay yourself.But then again.There could be a savings but what’s the difference between sole proprietor and a 1 person LLC is the difference big enough to have to pay for 2 different tax returns ever year

 

I would appreciate it if you would share how a sole proprietor can claim M&IE on his tax return. I’m also very interested in how a sole proprietor can avoid Self Employment taxes by claiming dividend income. You’d help many of your fellow drivers if you would share these tax regulations.

 

Yes, I thought this as well. I got hit by a driver in July and he was a lease operator with his company, leasing their truck. He had his LLC, but he was the one driving the truck. My brother told me that since he is the owner of the LLC and he was the driver of the truck, that his LLC would not prevent any loss to him since it was his negligence (literally, he backed into me not once but 3 times trying to park beside me) that caused the damage, and told me to sue him personally as well as his LLC if the insurance didn't settle up on loss of use. The insurance did settle up though.

 

I'm no tax expert but I pay one, and I've claimed per diem as a sole proprietor since I started 8 or so years ago.

 

thanks for that Scotty. I looked it up, and you are right, sole proprietors can claim Meals and Incidental expenses on their Schedule C. That’s a goodthing, happy to be wrong on that one.