Should I form a biz entity before starting walk away lease?

Discussion in 'Lease Purchase Trucking Forum' started by tscottme, Feb 1, 2021.

  1. Matrixexpress

    Matrixexpress Bobtail Member

    3
    6
    Feb 26, 2021
    0
    You can get away with a 1099 as long as you are paying self employment taxes
     
    Bean Jr. Thanks this.
  2. Truckers Report Jobs

    Trucking Jobs in 30 seconds

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

  3. Pepper24

    Pepper24 Road Train Member

    1,433
    908
    Apr 19, 2016
    0
    so you don’t believe a driver that caused an injury can be sued you don’t have to take my word google it.You have no idea what your talking about everyone has this friend I heard that 1000 times if you as a driver cause an injury you and your company is going to be named in the lawsuit
     
  4. Pepper24

    Pepper24 Road Train Member

    1,433
    908
    Apr 19, 2016
    0
    You can also make what ever claims on a internet chat line you want because it’s on the internet it has to be true right a lease purchase driver isn’t going to clear enough that incorporating is going to make almost no difference in taxes.Most aren’t even going to clear $70,000 that there actually paying tax on so paying for your tax and the corporation tax filling is going to eat up in little bit you might have saved.what paying your self on a 1099 makes no difference company’s do this so they don’t have to pay half of your taxes if you’re the only one in the company you’re still paying all of it
     
  5. WannaGoTrucks2016

    WannaGoTrucks2016 Bobtail Member

    40
    33
    Oct 10, 2015
    I-84 & I-87
    0
    OTE="Pepper24, post: 11103855, member: 180790"]It’s hard to believe anything you’re saving when you obviously lead out with a lie if you’re the only one in the LLC or corporation how is your personal things protected your obviously have to be the one driving if your the only one in the corporation so any lawyer is going to sue you since you were the driver and your corporation and the carriers of the insurance which is the carrier your leased too[/QUOTE]

    You really are completely clueless about the purpose of an LLC, how they work, and the benefits of setting it up. As long as the single member of the LLC isn't comingling their funds and paying business expenses out of their personal accounts and vice versa, the whole point of government creating the Single Member LLC was to provide asset protection along with pass thru taxation, avoiding double taxation.

    Sometimes it's better to keep silent on things you have no knowledge of than to come off sounding ignorant.
     
    Bean Jr. Thanks this.
  6. Wasted Thyme

    Wasted Thyme Road Train Member

    6,217
    30,452
    Jan 27, 2020
    GOAT watching
    0
    You really are completely clueless about the purpose of an LLC, how they work, and the benefits of setting it up. As long as the single member of the LLC isn't comingling their funds and paying business expenses out of their personal accounts and vice versa, the whole point of government creating the Single Member LLC was to provide asset protection along with pass thru taxation, avoiding double taxation.

    Sometimes it's better to keep silent on things you have no knowledge of than to come off sounding ignorant.[/QUOTE]
    He doesn't mention taxes. He's talking about being sued.
     
  7. Bean Jr.

    Bean Jr. Road Train Member

    4,644
    7,433
    Mar 30, 2014
    0
    The mega carriers pay their new drivers bupkes. If that's reasonable, then I can pay myself similar, and I do, and the remainder is profit. My self-employment taxes, ie FICA, are based on my salary, not total income. I won't say I had a great year last year, but by having half of my profits as wages typical of a mega carrier to a first driver, I saved $4,200. If you don't plan on clearing $50,000 a year, why bother to do it at all?
     
  8. Pepper24

    Pepper24 Road Train Member

    1,433
    908
    Apr 19, 2016
    0
    Yea I know everyone on the chat rooms are clearing these mega salaries by leasing to trucking companies.But if you start adding what these companies pay and subtract your cost it never adds up to reality..
     
  9. Pepper24

    Pepper24 Road Train Member

    1,433
    908
    Apr 19, 2016
    0
    I don’t believe for a minute you saved 4200 on any self employment tax or fica as you claim you wouldn’t even owe 4200 total on an self employment tax.But maybe I don’t understand.I understand a Scop can save you 15% on your self employment tax.I know you know what self employment tax is but anyone that doesn’t if you’ve work for someone on your check your fica is what self employment tax is,it’s not federal or state these are separate taxes.So if 4200 represents 15% savings what was your total self employment tax $35,000 ?you must be clearing about $500,000 a year
     
    Last edited: Mar 29, 2021
  10. Bean Jr.

    Bean Jr. Road Train Member

    4,644
    7,433
    Mar 30, 2014
    0
    What are you talking about? Self employment tax is 15.3%. $4,200 is 15.3% of $27,450. I don't know why that is hard to believe.
     
  • Truckers Report Jobs

    Trucking Jobs in 30 seconds

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

  • Draft saved Draft deleted