what entity should I form,INC or LLC

Hi guys,need help.I'll become to O/O soon,and I knew I should form a entity 1st.so,what type entity should I form,I means INC or LLC? which is better for just 1 truck and husband&wift team up?which one will saving on tax?thx

 

Why should you form one??

Most dont understand if they really need one or not. Just because your "gonna be an o/o" doesnt mean you need an LLC or INC

 

Inc will give the best tax break. I believe that my accountant said if you had to pay taxes on more than 34k to go ahead and inc.

 

you mean I should take my truck to other big carrier?

 

each persons/companies situation is different. one model may work for you while be wrong for someone else

Huh?? What??

Some business/tax classes or professional consultation would benefit you!!

Why do you THINK you need to file either?? Why not just be a Sole Proprietor??

So many in the trucking industry file LLC's or INC's thinking it provides protection from the individual; it doesnt!

 

I have no id how much tax I am going to pay,normally I think i would get $16000 gross/month,192000/yrs

 

I asked 3 accountant,they all said go INC,that made me confused,my job s simple,just 1 truck,why should i be a corporate,did they trying make thing complex ,then they'll have more work on it,so they can charge more service fee?

 

And it will depend on the state that you are in. Different states have different fees.

As the owner and the driver you will have no protection. Best protection is having plenty of insurance. The only benefit MAY be taxes. But you will have additional expenses with an INC/LLC so you have to figure out if the additional expenses will save you money or not. For most independent O/O's they don't save money.

But if you plan on growing past a single truck I would do it regardless so that down the road you don't have to change all the contracts with your customers.

 

my wife and I did DBA (proprietorship) in the case of a married couple, I believe it's called a "joint venture" and you file separate tax returns. Each person gets to share the profit/loss. Way less hassle than incorporating and until we break the six figure salary, it'll work just fine for us.

 

I'm an LLC just one truck and I'm the driver. I have no more depreciation on the truck and last year taxes about killed me. Simplest way to put it is LLC you pay 25 percent tax rate. INC you pay 15 percent. That what an accountant told me so I'm about to switch over just as soon as I am up to snuff on the rest of the legal mumbo jumbo. So for me it sounds like simple math.