EIN Question

if your only interested in payroll, its not necessary. one's social will suffice.

ein, if i recall correctly come w/ corp. status.

 

If the business is owned by both of you, an EIN is required. It would be because you are a partnership.

If it is owned by one, you would probably be better off with a EIN in case you ever have to give a 1099 for labor performed on the truck over 600.00 in the year.

You will also need one for the heavy use tax, I believe.

A local person who is well versed in trucking is a good choice. Try for an enrolled agent to practice before the IRS or CPA. You must be comfortable with who you choose.

 

Yes you do need it for the 2290 (HVUT). You should get an EIN anyway because your social security number will be attatched to it. That way you will not have to worry about identity theft. No sense in having a SS# all over the place.

I use brokers to get loads under my own authority, so I give them an EIN instead of my SS# (I am a sole-proprieter), for security reasons. I have about 20 brokers that I use. The more your SS# is out there the more likely that you could have your identity stolen.

 

I take it since you have an EIN you are an "S" corp.......

What I do is is take what is known as an "officer loan"..... You'll pay less taxes......

In fact....if you do it right, you can reduce your "payroll" to a minimum......

The trick is show that the corp is not profitable......or as profitable.....
Also make sure you leave a "paper trail"...
Find out what you can write off and just not your rig.....
If you have a home office...some of it may be written off as well as the phone and electricity bills.....as a percentage due to business use.

 

Ok.....

Now we know.......

My advice..incorporate....
As a "sole proprietor" you have more exposure than a corporation.
You can lose your house if you are a sole proprietor......

You want to reduce your exposure....why??????
When you have your name on the door.....people only see $$$$$$$$...
not John Smith Transportation....

Depending on what state your in, you can file all the necessary documents yourself to become an "S" corporation......

Remember....you need to cut down on exposure as much as possible...

Show the IRS you made next to nothing........

Find the best accountant you can afford.......

For book keeping, payroll, banking, billing...I would suggest Quickbooks.

Back-up your files on a thumb drive and take it over quarterly to your account......

 

Agree with Patriot... Incorporate . All liabilities become the responsibility of the corporation. You are also able to deduct alot more expenses if you play the game right. Your goal will be to write off as much as possible of all recipts. I always recommend to find a good CPA . Ask around, if you have a good relationship with your bank ask the bank manager who they recommend for your type of business. Meet up with a few . DON'T be shy ask alot of questions up front now. A good CPA will basically pay for themselves with what they save you. Keep doing exactly what you have started here ...ask. Read everything you can find. Figuring out what is good advice and what is garbage will soon be clear. Good Luck