QuestionMy husband has been an OTR agency driver for 12 years for a major HHG company - he is paid L/H & accessorial commission and comes close to $100,00 yr net. He is about to purchase a truck and still drive for the same agency. I am treating this like a business and want to be sure we do everything correctly from the start. I need advice on 1. plating through the agency versus plating himself through IRP - is either more sensible/expensive?
2. Should he incorporate? I know he has to get a fed id# but isn't his liability lessened with incorporation?
3. I have called the IRS and they are not helpful regarding filing taxes. I file ours every year and they are NOT basic, simple taxes - we itemize, have a schedule C, SE, receive a 1099 for farm profit... I want to continue filing the taxes when he is competely self-employed but have so many questions about deductions and expenses specific to transportation workers. It is much different than just a traveling salesperson. I want to estimate and pay quarterly and I'd love advice from a succesful o.o. - I don't want to learn from MY mistakes!
Thanks in advance! Nancy
AnswerHi Nancy,
Sorry about the delay in response, but sometimes I have to hop in the truck. I would absolutely start a corporation and plate the truck thru the company (unless your agency says otherwise). You want to keep all liability on the corporation and if anything happens, your not personally liable. It's the smart thing to do.
Calling the IRS won't yield you the results you need. At the very least, find a trucking accounting program. I would find a good accountant, that preferably knows something about trucking. If that's not an option, I would go to some tax seminars, buy tax books and study up. I have a great accountant that take care of everything for me for only a few hundred dollars a month. He knows all the loopholes and it's something I just don't have time for.
The OOIDA (www.ooida.com) can help out too. Make sure you join!
Good luck!
Bob Stephens
