How is your business set-up? LLC? Inc.? DBA?
- Thread starter Lawrence
- Start date
Non-profit organization.
ChanceMaster
Expert Expediter
I am a contractor for FXCC. I drive for a one truck owner. I am set up as a corporation (inc.) I use a payroll service to take my taxes out of my gross every week. All of my payroll is accomplished by smartphone/email . I could do it cheaper, but the payroll service makes sure I do it every week, I avoid procrastination that way.
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18wlrteacher
Expert Expediter
If you don't mind me asking, what payroll service do you use?
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ChanceMaster
Expert Expediter
Paychex
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tenntrucker
Expert Expediter
Didn't intend for it to be this way, just happened .......
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BigCat
Expert Expediter
Hmmm I am gonna have to look in to something like this. What on average is it costing?
S Corporations, for the tax advantage. Also like the way a corp. Puts a definite line between business and personal. Corporations pay all parties involved. Take care of the taxes and everything is nice and neet.
moose
Veteran Expediter
Just as a side note (very sided) for all of you that used to have another DOT number set up "for taxes only" purposes,
while still showing the carrier DOT# on the side of the truck as the one responsible for safety,
the FMCSA got away with that stupid idea, and you are no longer require to have one.
while still showing the carrier DOT# on the side of the truck as the one responsible for safety,
the FMCSA got away with that stupid idea, and you are no longer require to have one.
Ragman, How do you get away as a Non-profit, watch out they are going to audit approx 1 million non profits this year
All others, If you are a Full corporation, or "S' Corporation, you must take a resonabile salary, and have taxes taken out, it is completely deductible to the Corp. you recieve a W-@ with taxes taken out in A full corp,
If you are a sole propreitor set up as a "S" corp, you must do this or you can wait untilthwe end of the year and the "s' Corp makes out a K-1 to you on the profit, An "A' Corp is does not pay taxes, you pay them on the profit on your personal tax return,
A full or "S' Corporation protects all of your assest only if the assets of the Corporation are part of your start up costs and in the Corp.
In otherwords if you use your house to purchase the truck, your out of luck
An LLC is not the recommended was to go, MAIN REASON IS THAT IT ONLY PROTECTs YOU TO THE TOTAL LIABILITY THAT YOU PUT INTO THE BUSINESS, AND IS NOT RECONIZED OUT OF YOUR HOME STATE WHER THE LLC IS SET UP.
lets say you are a Pennsylvania LLC, and you have an accident in ILL. you are not protected at all and you can lose everything, and be sued for everything you own.
My Suggestion is to disolve the LLC and form Corporation with an "S" Election and you will be fully protected
As Far as a Sole Propreitor is concern, you are responsible for all self employment tax and federal tax that on the Profit. it is the least expensive way of doing business but it could cause you large tax obligations to be paid.
you can also set up a payroll being a sole Propreitorhsip, this way you have paid taxes on your income, but you have to pay Social Security, Medicare, this year 2012 4.2% and Unemployment tax, and quarterly and payroll taxes must be paid.,
Frank’s Tax andBusiness Service
120 York RD Kings Mountain, NC28086-3151
(704) 739-4039 Fax: (704) 739-3934
e-mail: [email protected]
Web Site: File Your Return Online
Franklin Katz, ATP, PA, PB,
Providing Professional Accounting, Bookkeeping, Payroll and Income TaxPreparation Services
*Circular 230 Disclaimer: To ensure compliance with Treasury Regulationsgoverning written tax advice, please be advised that any tax advice included inthis communication, including attachments, is not intended, and cannot be used,for the purpose of (i) avoiding any federal tax penalty or (ii) promoting,marketing, or recommending any transaction or matter to another person.
Confidentially Notice: This email message is Ifyou have receivedthis message in error and are not the intended addressee, please advise thesender by reply email and delete this message immediately.
*The IRS does not endorse any particular individual taxpreparer. For more information on tax return preparers go to IRS.gov
All others, If you are a Full corporation, or "S' Corporation, you must take a resonabile salary, and have taxes taken out, it is completely deductible to the Corp. you recieve a W-@ with taxes taken out in A full corp,
If you are a sole propreitor set up as a "S" corp, you must do this or you can wait untilthwe end of the year and the "s' Corp makes out a K-1 to you on the profit, An "A' Corp is does not pay taxes, you pay them on the profit on your personal tax return,
A full or "S' Corporation protects all of your assest only if the assets of the Corporation are part of your start up costs and in the Corp.
In otherwords if you use your house to purchase the truck, your out of luck
An LLC is not the recommended was to go, MAIN REASON IS THAT IT ONLY PROTECTs YOU TO THE TOTAL LIABILITY THAT YOU PUT INTO THE BUSINESS, AND IS NOT RECONIZED OUT OF YOUR HOME STATE WHER THE LLC IS SET UP.
lets say you are a Pennsylvania LLC, and you have an accident in ILL. you are not protected at all and you can lose everything, and be sued for everything you own.
My Suggestion is to disolve the LLC and form Corporation with an "S" Election and you will be fully protected
As Far as a Sole Propreitor is concern, you are responsible for all self employment tax and federal tax that on the Profit. it is the least expensive way of doing business but it could cause you large tax obligations to be paid.
you can also set up a payroll being a sole Propreitorhsip, this way you have paid taxes on your income, but you have to pay Social Security, Medicare, this year 2012 4.2% and Unemployment tax, and quarterly and payroll taxes must be paid.,
Frank’s Tax andBusiness Service
120 York RD Kings Mountain, NC28086-3151
(704) 739-4039 Fax: (704) 739-3934
e-mail: [email protected]
Web Site: File Your Return Online
Franklin Katz, ATP, PA, PB,
Providing Professional Accounting, Bookkeeping, Payroll and Income TaxPreparation Services
*Circular 230 Disclaimer: To ensure compliance with Treasury Regulationsgoverning written tax advice, please be advised that any tax advice included inthis communication, including attachments, is not intended, and cannot be used,for the purpose of (i) avoiding any federal tax penalty or (ii) promoting,marketing, or recommending any transaction or matter to another person.
Confidentially Notice: This email message is Ifyou have receivedthis message in error and are not the intended addressee, please advise thesender by reply email and delete this message immediately.
*The IRS does not endorse any particular individual taxpreparer. For more information on tax return preparers go to IRS.gov
Frank, It was meant as a joke.
Slo-Ride
Veteran Expediter
In doing so is it or would it now possible to say,,Lay myself off during slow and bad economic times and collect unemployment?
(I sure miss the old winter unenjoyment I use to collect
)Lawence: Im set up as a L.I.H. (low income housing) or was untill I recently changed carriers ..
All joking aside I am LLC..Reason being was advised by others and reading here now kinda thinking it may have been the wrong route to go..And will start reseaching my way of think.
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Hi All,
I said in a previous replay to this thread that a LLC only protects you in your home state, but there are very few that work together. Check your laws concerning these LLC's
As far as a Sole Propreitor, you can set up a payroll account and have taxes withheld, but you must pay Quarterly payroll taxes. and since you are Self Employed, and you take a 4 month vacation or don't work, aS fAR AS i KNOW,YOU CANNOT COLLECT UNEMPLOYMENT INSURANCE!, You would have to check with the Unemployment offices in the state where you reside.
As Far aS RAGMAN, that is not a Joke, if the IRS was monitering this site and saw that, you might be in trouble.
Forming a Corporation does protect your personal Assets, True,
but if you do not make the "S" Corp Election, YOU WILL BE TAXED BOTH BY THE CORPORATION AND PERSONAL. OR WHAT THEY CALL "DOUBLE TAXATION" Whereby by forming the "S" Corp any profits or loses shows up on your Personal 1040 line 17 from the items entered on the K-1
Frank
I said in a previous replay to this thread that a LLC only protects you in your home state, but there are very few that work together. Check your laws concerning these LLC's
As far as a Sole Propreitor, you can set up a payroll account and have taxes withheld, but you must pay Quarterly payroll taxes. and since you are Self Employed, and you take a 4 month vacation or don't work, aS fAR AS i KNOW,YOU CANNOT COLLECT UNEMPLOYMENT INSURANCE!, You would have to check with the Unemployment offices in the state where you reside.
As Far aS RAGMAN, that is not a Joke, if the IRS was monitering this site and saw that, you might be in trouble.
Forming a Corporation does protect your personal Assets, True,
but if you do not make the "S" Corp Election, YOU WILL BE TAXED BOTH BY THE CORPORATION AND PERSONAL. OR WHAT THEY CALL "DOUBLE TAXATION" Whereby by forming the "S" Corp any profits or loses shows up on your Personal 1040 line 17 from the items entered on the K-1
Frank
zorry
Veteran Expediter
Frank, if the IRS were monitoring this sight wouldn't there be many people with far larger problems than Ragman joking around about being a non-profit ?
Also,doesn't the IRS have an amenesty program for anyone that wakes up one day and realizes their independent contractors are really employees ?
Also,doesn't the IRS have an amenesty program for anyone that wakes up one day and realizes their independent contractors are really employees ?
golfournut
Veteran Expediter
A note of caution. If you elect to go the "s" or "c" corp route, make sure your paper trail is complete. Down to minutes of board meetings. If your a one person operation, kinda hard to second a motion to accept the minutes of a previous board meeting.
Not such a big deal with the tax man, but it is a very easy way to dissolve the corporate veil in a law suite. Once the veil is breached, your toast.
To properly set up a "s" or "c" corp, be prepared to spend a minimum of $5-10k. Sure you can get it done by a divorce lawyer for $500, but in a major law suite, it won't hold up.
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Not such a big deal with the tax man, but it is a very easy way to dissolve the corporate veil in a law suite. Once the veil is breached, your toast.
To properly set up a "s" or "c" corp, be prepared to spend a minimum of $5-10k. Sure you can get it done by a divorce lawyer for $500, but in a major law suite, it won't hold up.
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maybe where your from but not where im from. it does cost a little money but 5-10 k. somebody bent you over or seen you coming. we are with one of the best cpa firms in central illinois. they have their own corporate lawyers they use to set up and advise on all aspects of corporations and corporate law. been in business for 30 years and are used by most of the largest businesses in the area and the incorporation process isnt over 5k, maybe 3k when all said and done. but i guess being in the middle of podunk, il may account for something.
golfournut
Veteran Expediter
In 1979 I had a "c" corp set up by a lawyer friend in Austin Tx. Paid him $500. It didn't hold up. Another start up was able to take the name. Thank god it wasn't something more serious.
In 1982, I paid $5000 to a lawyer who at that time taught law at UT and wrote a book on setting up a "c" corp. It got tested 3 times, the last in 1995 by the IRS. Each time it held up. Even the IRS couldn't pierce that veil. Meanwhile, she has set up 4 others for me the last one in 2002, cost $7300.
The length of time a CPA firm or the amount of lawyers they have doesn't matter if they don't know what they are doing. The true test is in the courts. Will it hold up and have you done your part. Maybe they saw you coming and charged you too much if it doesn't hold up!
Just because your in podunk and paid only $3000, doesn't mean it won't cost someone else more. Maybe we just want the best in our area to protect ourselves. The best charge more!
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In 1982, I paid $5000 to a lawyer who at that time taught law at UT and wrote a book on setting up a "c" corp. It got tested 3 times, the last in 1995 by the IRS. Each time it held up. Even the IRS couldn't pierce that veil. Meanwhile, she has set up 4 others for me the last one in 2002, cost $7300.
The length of time a CPA firm or the amount of lawyers they have doesn't matter if they don't know what they are doing. The true test is in the courts. Will it hold up and have you done your part. Maybe they saw you coming and charged you too much if it doesn't hold up!
Just because your in podunk and paid only $3000, doesn't mean it won't cost someone else more. Maybe we just want the best in our area to protect ourselves. The best charge more!
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have all the faith in the world in this firm along with several hundred other corps from this area. has it been tried in court, no. am i worried if it would, no. did i get the best as you say, yes. have others that use them been tested in court, yes, at least 4 that i know of and one of them twice. did it hold up and were they there with the lawyers, yes. guess mine must not bill as many hours or something but they are as good and as thorough as any.