Wanting my own truck???

You can also still make good money in this industry, and if you own the truck who else is going to pay for the maintenance and tires? I don't understand your statement? O/Os that want to be doing this gig have a maintenance account set up.

 

Now somebody correct me if I am wrong....

But isn't he overlooking taxes in his numbers? He'd be fully out of pocket for SS for one thing instead of the 50/50 he pays as a company driver. Hopefully a few O/O will chime in on that aspect of it.

Good call on the LLC thing though.

 

Rich T.

If he forms an LLC and he operates as an O/O leased to that LLC, he can claim his pay as a contractor (1099). Then when he files his taxes, he'd fill out a Sched. C and Sched. SE that would factor in his SS taxes. Since those earnings would show up as Self-employent wages he would only have to pay the employee portion of his SS taxes.

So, just to use a round number, if he made $25000 he would only pay $1912.50 (25000*7.65&#37 in SS tax. Which is what would be withheld from a regular paycheck. *See line 27 on your 1040*