Driver Expense Logs

[KarylB]

My wife is getting ready to go out on the road as an O/O and I plan on doing her bookeeping. She's becoming incorporated as an S corp with the help of a CPA. But I was wondering, what kinds of expenses should should she be keeping track of while she's on the road. Obviously, as her bookeeper I want her to keep every single receipt for every single penny and as a driver she'd rather not bother with all the details.... So what's important to keep track of and what isn't. She'll be driving a brand spankin new Sprinter leased to a carrier.

Thanks.

Karyl

 

[Fkatz]

Hi,

Personally and as a Tax Professional I do not think that it is wise at the present time to incorporate in any corporation, but every CPA will tell you to do so, this way they can get a large fee for doing this.
If you go to [www.partners-in-business.com] (written by Over the Road Magazine and Volvo Trucks) it states in there that if you are new to the transportation industry you should not incorporate, even as a "S" corp. due to the fact that if you do not like the business, your only expense would be the vehicle lease that you are responsible for the full term.
Now you have to keep 2 full sets of books. the Corporation and your own.
I do not know exactly how you are going to work out of the corp.
with the corp you have to pay payroll taxes, consisting of
Federal, State, Medicare, file Quarterly 941's for payroll taxes, W-2' at end of year. Your most expensive expenses will be Insurance.
Regular business and business liability, workments Comp, your Vehicle insurance for the Sprinter, have to carry all, Sprinter must be leased to the corporation not to yourselves as individual owners.
I think you better resind the corp before it starts, and be a sole propreitor for the first 1-3 years. there is not as much expense TO KEEP UP WITH.

THIS IS WHAT I DO NOT UNDERSTAND, WHY DOES EVERYONE FEEL THAT THEY HAVE TO INCORPORATE IN THE FRIST YEARS.
FIRST OF ALL IT IS VERY COSTLY TO INCORPORATE, DUE TO THE FACT THAT EVEN IF YOU INCORPORATE IN THE FREE STATES, SUCH AS DELAWARE,OR TEXAS,NEVADA,WASHINGTION STATE, YOU STILL HAVE TO PAY ALL OF THE CORP. TAXES THAT ARE REQUIRED. in your resident state.
if you really want to you can file for Corporate papers online. at 1/2 the cost.

this is my own opinion, I was never incorporated when i was leased on for 6 years. Never has any problems, Corporationsthey watch closer then sole proprietors. you must have as I said before, your Corporate Check book and your personal check book, you can not combine the two.

Frank

 

[Fkatz]

Hi Karyl,

I forgot on the Expense. if she is going to be a Corporation, All receipts are required. no exceptions,
including showers, laundry, etc, also you must have a Corporate cell phone it can not be a personal one, which means if your wife want to call you at home, she cannot use the corporate phone, so she had to carry 2 cell phones. not just one. and then only the corporate phone can be deducted as a expense. all tires, repairs, and other major items must be made out to the Corporation not to her personally. and so on, keeping a corporations books are not as easy as a sole propreitor. you still have to keep a separate checking account and take an owners draw out of it, but the other way everything must go in the corp name.

Frank