[layoutshooter]

How does a O/O (one truck) account for the income/taxes on that business? Do you pay yourself a 1099 and the business pay it's own taxes or do you just pay it all yourself? Should a single truck be totaly split off from the household taxes? My CPA says that a total split is not needed for a single truck. I get confussed.(my normal state) I somehow think that the my LLC should pay a 1099 to the family and the truck pay it's own taxes. HELP!!!!!
The LLC is registered in Michigan. Layoutshooter

[Fkatz]

Income splitting

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How does a O/O (one truck) account for the income/taxes on that business? Do you pay yourself a 1099 and the business pay it's own taxes or do you just pay it all yourself? Should a single truck be totaly split off from the household taxes? My CPA says that a total split is not needed for a single truck. I get confussed.(my normal state) I somehow think that the my LLC should pay a 1099 to the family and the truck pay it's own taxes. HELP!!!!!
The LLC is registered in Michigan. Layoutshooter

Hi layoutshooter,

The tax law states that you are considered a SINGLE MEMBER LLC, (A DISREGARED ENITITY) AND FILE A REGULAR 1040 WITH A SCH C, PROFIT/LOSS FROM BUSINESS OR PROFESSION Along with all your personal tax deductions. No 1099's are need but you MUST HAVE a separate checking accout in the business name, you cannot comingle your personal funds with your business income and expenses. depending on who you are lease to, you would deposit your settlements into the business account and then transfer, or withdraw and redeposit what ever you need to pay your personal bills, I am supprised your CPA DIDNT TELL YOU THIS.

You enter your Federal ID # that you recieved for the LLC and put it in the ID line, not your social security #. and enter all the expenses

You do not even have to spit if you decide that you want to own a fleet, up to 5 trucks and put them in service, Once you get beyond that then I would suggest to form a full Corp.

With an LLC you only have limited protection depending on the state you live in, I cannot tell you exactly what, but your Lawyer is the one to talk to on that.

I specialized in the trucking industry, and do as many as around 100 truck driver returns, who are individual Sole Propreitors, LLC's, "S " Corps and Full Corps. I myself drove as Owners Operator, Company Driver, Tax Preparer, over the last 10 years, but I have been preparing Income tax returns since 1975

I am a member of OOIDA, #640573
If you have any other question please do not hesitate to ask,

Franklin Katz, ATP, PA
Frank's tax & Business Service
120 York Rd
Kings Mountain, NC 28086
(704) 739-4039

[layoutshooter]

That is exactly what the CPA has down for us. It just seems goofy to me. I guess it's my slow nature with numbers. I hate them!!! LOL. I guess I don't have to understand it if it keeps the IRS happy. All the numbers work so I guess we will keep it up. Thanks a million.
Layoutshooter

[mypie]

FKatz,

So, my husband and I are just getting started driving team. In a couple of weeks we will being working with a fleet owner and driving for FedEx CC.

What do we need to know about tax issues?

Do we need to set up a separate business entity? What are the different types and what would be the best for husband/wife team?

What can we write off as a business expense?

I may have more questions, but don't know enough at this point to know what to ask.

Thanks.

[arkjarhead]

Fratz,
I'm going to tell you up front I know nothing about accounting. I'm telling you this because I don't want you to think I'm acting like a smarty pants know it all because I don't. I'm in the college class Intro to Accounting and I'm just trying to apply what I'm learning in class to the real world.

Here is my question and I hope I don't confuse you with it. Of course o/os are going to withdraw money from their business accounts to pay personal bills. I know this has to be tracked. So is this where in double entry accounting you have the account the drawing account? If so this makes a lot of what is being taught to me in class make sense. Of course you know the drawing account comes into the extended accounting equation which is assets= liabilties+owner's equity-drawing+revenues-expenses.

I hope I haven't confused you or came across as a know it all I'm just trying to take some stuff from the classroom and apply it to the real world.

[layoutshooter]

Thanks Arkjarhead,

I think that is what I was trying to ask. Math sucks!!! I would be rich if it were not for numbers. They have always held me back. LOL Layoutshooter

[arkjarhead]

In accounting class our instructor told us a business can set up a temporary account called the drawing account. When you withdraw cash you will do a credit in your cash account and a debit in your drawing account. Since this drawing account is a temporary account you have to close it out at the end of the month. Then next month you can open it back up basicly. At least this is my understanding. I would like to add a disclaimer that I am in no way,shape, or form a professional accountant. I'm just taking the class.

[ATeam]

Originally Posted by mypie

Do we need to set up a separate business entity? What are the different types and what would be the best for husband/wife team?

The U.S. Small Business Administration has a nice summary of business types and their pros and cons on their web site. Click here to view it.

[Fkatz]

It seems that there are always a few explanations into accounting in class and in the real world,

In trucking you must have a separate account for all your business transaction,

If you are a Sole Propreitor, all you have to due is withdraw any amount that you would like and transfer it you your personal Account to use for personal bills, teh remainder ould stay in the business account to use for only business expenses.

An LLC, "S" and "C" Corps, Owners Draw debit and credit.s

except If you are a Singe Member LLC, you would do the same as a Sole propreitor,

A partnership as a LLC or Corporation must send out k-1's to each partner
Corporation Also must take a draw from the corp to use for personal use.

you use the double entry posting

Frank