Pay and new per diem

So is a DBA necessary for doing business?

 

Absolutely not. You can transact business under your given name and social security number.

That said, filing for a employer ID number does keep you from sending your SSN out to a lot of companies, brokers, etc. Likewise, a DBA and separate bank accounts make business a little simpler.

 

I don't see which option is best? Ssn# or DBA? I apologize for the questions.

 

It's not between SSN and DBA. It's between using your SSN or an EIN (Employer Identification Number). If you have an EIN, you don't have to include your SSN on all your business transactions, like your W9. In this day and age, that could save you some grief with identity theft.

The DBA is more of a marketing decision. Do you want to be "Super Duper Master Trucker Express Logistics", or do you want to be known as "Bill Jones"? A DBA isn't really a legal construct, other than the ability to call your business with a business name. "Bill Jones Trucking" is a DBA, but you would remain a sole proprietor from a legal and tax perspective.

 

The way I understand the new per diem tax law, the only per diem you save taxes on is what ever your employer shows as per diem. The companies not doing a per diem program and just screwing the company driver out of a tax savings. Please correct or inform me if someone knows different.
Also I wonder how much this will effect the amount an owner operator or contractor can take on his profit and loss statement.

 

This guy is good, and dead on. See the entire picture. I used to cross $1200 doing advertising tours. Motel allowance $85 and $35 for meals. Decent deal and could work Holiday Inns for any price room because they know what corporate pays. Hello real breakfast buffet. Then i go to witk fir a different company. $900 a week taxable. I was complaining until another driver clued me in. He said you are going to get $135 per diem, tax free. Do whatever you want with it. So we paired up in Super 8s and saved tons. I was making more in per diem than salary. Sweet.

 

I get .42 per mile. My company breaks it down to .32 taxed and 10 per diem. Works for me.