Need your Guys advice for Business Start up.

[jzalesky]

Hello everyone-
I have an opportunity to start my own local cartage company running freight locally for an airfreight company. I have a father that has been in the airfreight business for 25 plus years and the company he works for is giving me a chance to run freight for them. The whole idea is to get started and grow from there.

So right now I am in the middle of putting everything down on paper and getting the ball rolling. My question is as being the sole owner and operator of Box Truck with the intentions of growing, which type business should I form? Should I go LLC or should I do a C-Corp or S-Corp? I want to make sure I go the right directions for tax purposes etc. I am looking to average about 120k to 140k gross each year per truck with this current company I would be running freight for. I would be home every night except for a few long hauls, so I would average about 40,000 miles a year.

Anyway I just thought I would come here and get some advice. So lets say I take home as salary 48k a year. Will I have to take off 13 percent for self employment and another 20 plus for income tax? I live in Texas so there is no state tax. I am also single and own a house. So any idea what I would actually get to keep out of that?

I will profit around 60k a year and will have to provide my own health insurance etc. Not sure if thats a right off or if that has to go on personal taxes? I appreciate anyone's advice or input on this.

Thanks,
Jason

 

[usafk9]

If you're going to invest money into a truck, why wouldn't you also invest in a good tax planner/preparer?

What I mean is, don't be cheap. Hire an accountant AND an attorney.

$3.00 + per mile on local runs? Maybe I'm in the wrong gig.....

 

[BobWolf]

The rules varry from state to state get ahold of a good business lawyer and accountant they know how to do things right and legal focus on building your customer base and being a motor carrier dont just wing it. Having a "friendly" contact at the F.M.C.S.A. to answer major D.O.T. and enforcement questions never hurts best to ask rather than get caught doing somthing wrong even if was not intentional you are expected to know and its better than heresay from other drivers.

 

[jzalesky]

If you're going to invest money into a truck, why wouldn't you also invest in a good tax planner/preparer?

What I mean is, don't be cheap. Hire an accountant AND an attorney.

$3.00 + per mile on local runs? Maybe I'm in the wrong gig.....

There are four other Owner/Operators that average about 2500 a week. The top guy does around 3,000 a week but he is willing to run on weekends. This is for local freight which would be running to customer locations and to and from the DFW airport. 40,000 miles was just an estimate so could be more mileage per year.

As for tax stuff I plan on getting a CPA. This gig is something that my father is hooking me up with so hopefully its the right thing to do.