Tax question for non married team drivers

[Vtro]

Me and my friend are buying a sprinter and will be driving it as a team. My question is how do we set up properly in order to do taxes. I heard a partnership Is the easiest way with a joint account, another thing I heard is have the money go into one account and then 1099 my co driver, (which would make him a sub contractor unable to write any thing off??) in my opinion that seems a little shady. Any ways any opinions are welcome. Thanks

 

[terryandrene]

Your friendship with your future business partner may lead you to think your entry into the trucking business is no big deal, but it is. You would be best served by seeking legal and accounting advice, particularly if you think you may be successful enough to expand your business into a fleet of trucks...Think Big. For starters, I'll offer a bit of layman discussion. You really need to develop a business plan that will discuss, among other things, the relationship you two will have. If you create a Limited Liability Corporation (LLC), you can operate as a company, lease your company to a carrier so that you company is receiving any revenue into its account. That account will be used to pay all business expenses and its two employees, taxes and all. Your pay will be determined after all business expenses and deductions are taken care of by the LLC. You each can then file your own takes and take your business expense deductions, such as meals and sundries. You should also have written agreement about your relationship considering all of the good and bad issues that will or may be experienced. Such as, one of you decides to quit, how will you divide your assets and liabilities? One of you takes a week off for vacation or illness and the other drives solo, how will you distribute run revenue? One of you dies; who will inherit the deceased persons share of the business, the biz partner or the deceased partner's next of kin? Think about what I said and you two can develop your own list of what ifs. Good luck