Home: Message List - LLC being taxed as an S corporation in trucking business

Re: LLC being taxed as an S corporation in trucking business

Elite1 — Sat, 22 Nov 2008 01:17:19 GMT

CorpCons08... Are you aware of how an S-Corp is taxed? An S-Corp is a pass-through entity. The income and expenses are passed through to the members. The members report their share on their personal tax return as Passive income...not subject to self-employment tax. Hope this helps for the future.

Tanya
Elite Financial Services, LLC

Re: LLC being taxed as an S corporation in trucking business

CorpCons08 — Tue, 08 Jan 2008 02:55:20 GMT

Please do and let us know what you find out.
Best wishes.

CC08

Re: LLC being taxed as an S corporation in trucking business

jnltrk — Tue, 08 Jan 2008 02:53:26 GMT

Yes I asked about the partnership and they advised the S corp. It was an online service but I spoke with the attorney also. I will get an accountant asap though.

Re: LLC being taxed as an S corporation in trucking business

CorpCons08 — Tue, 08 Jan 2008 02:51:30 GMT

He did ask as he said, and his lawyers response was to avoid the annual fees.
The question comes though if the lawyer is acting in the clients best interest with that response.
I would consult a second professional if you can. If they agree, then go with it.

CC08

Re: LLC being taxed as an S corporation in trucking business

LUCKIEST — Tue, 08 Jan 2008 02:49:42 GMT

The attorney setting it up advised the S corp. That is was every busness should have a Lawyer and an Accountant.
They know. Did you ask the lawyer about the partnership??
LUCKIEST

Re: LLC being taxed as an S corporation in trucking business

CorpCons08 — Tue, 08 Jan 2008 02:44:56 GMT

It would be just a matter of doing the change with the IRS.
They have a form to designate your LLC status.

CC08

Re: LLC being taxed as an S corporation in trucking business

jnltrk — Tue, 08 Jan 2008 02:41:26 GMT

Was going to do exactly that but the attorney setting it up advised the S corp in order to avoid paying the llc annual fees in CA until 2010. If the partnership is indeed the better route, how complicated is it to change to it? Have not yet actually started operating the business, only paid for the llc. . .

Re: LLC being taxed as an S corporation in trucking business

CorpCons08 — Tue, 08 Jan 2008 02:27:20 GMT

Why not keep it under the LLC and set up as a partnership rather than an S Corporation under the LLC entity?
Then you are not taxed at the rate of a corporation, get the benefits of a partnership and the liability protection of an LLC.
Just a suggestion.

CC08

LLC being taxed as an S corporation in trucking business

jnltrk — Tue, 08 Jan 2008 02:22:05 GMT

As an trucking owner operator I set up an LLC (two members, husband and wife) and was advised to elect to be taxed as S corporation. Does anyone know if it would be best to keep the truck in one members name and lease to the corporation , or put truck in the name of the LLC? Considereing both tax benefits and liability?