ForumsTaxes and Payroll

Up to All Forums

This Question is Possibly Answered

1 "correct" answer available (5 pts) 3 "helpful" answers available (4 pts)

8 Replies Last post: Nov 21, 2008 8:17 PM by Elite1

LLC being taxed as an S corporation in trucking business

Jan 7, 2008 9:22 PM

jnltrk 3 posts since
Jan 7, 2008

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?

Tags: Report as inappropriate

CorpCons08 1,128 posts since
Nov 14, 2007

1. Re: LLC being taxed as an S corporation in trucking business Jan 7, 2008 9:27 PM

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

Report as inappropriate

jnltrk 3 posts since
Jan 7, 2008

2. Re: LLC being taxed as an S corporation in trucking business Jan 7, 2008 9:41 PM

in response to: CorpCons08

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. . .

Report as inappropriate

CorpCons08 1,128 posts since
Nov 14, 2007

3. Re: LLC being taxed as an S corporation in trucking business Jan 7, 2008 9:44 PM

in response to: jnltrk

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

CC08

Report as inappropriate

LUCKIEST 7,912 posts since
Aug 6, 2007

4. Re: LLC being taxed as an S corporation in trucking business Jan 7, 2008 9:49 PM

in response to: jnltrk

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

Report as inappropriate

CorpCons08 1,128 posts since
Nov 14, 2007

5. Re: LLC being taxed as an S corporation in trucking business Jan 7, 2008 9:51 PM

in response to: LUCKIEST

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

Report as inappropriate

jnltrk 3 posts since
Jan 7, 2008

6. Re: LLC being taxed as an S corporation in trucking business Jan 7, 2008 9:53 PM

in response to: LUCKIEST

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.

Report as inappropriate

CorpCons08 1,128 posts since
Nov 14, 2007

7. Re: LLC being taxed as an S corporation in trucking business Jan 7, 2008 9:55 PM

in response to: jnltrk

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

CC08

Report as inappropriate

Elite1 64 posts since
Nov 14, 2008

8. Re: LLC being taxed as an S corporation in trucking business Nov 21, 2008 8:17 PM

in response to: CorpCons08

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

Report as inappropriate

Bank of America, N.A. Member FDIC. Equal Housing Lender

Bank of America is not responsible for user posts and other user content appearing on this website and does not endorse or guarantee the perspectives, the advice, the users, the businesses, or the products or services sold by any users or businesses that appear on this website.

ForumsTaxes and Payroll

This Question is Possibly Answered

LLC being taxed as an S corporation in trucking business

Jan 7, 2008 9:22 PM

More Like This

Most Recent Forum Posts

Legend