Yes. I'm in a similar situation now. The truck/equipment must be in the business name.

Find a good CPA for proper guidance moving forward.

 

The main two advantages for most of us are 1) liability protection, and 2) tax break. The LLC can pay you a fair salary and you pay self employment/SSI tax and income tax on that amount but you don't pay that on the remainder.

Consult a good CPA!!!

 

While you can use the truck as a business expense, it doesn’t equate to a dollar for dollar tax deduction. Since the truck will also be pulling your fiver, that mileage won’t be deductible either. If you’re going to hotshot, get the biggest slip tank you can fit in front of the hitch. Don’t forget you need to DOT the truck and get your DOT physical card. And yes, a good CPA is an asset for a single proprietor LLC.

 

You don't need an LLC to be a sole proprietor.

 

^ but can you take advantage of the tax breaks afforded an "S" corp/pass-thru?
Not disputing what you say, just curious...

 

I was an LLC S-Corp for 9 years and it was perfect for my situation. You get to pay yourself whatever salary you like and you can do a shareholder distribution at the end of the year for whatever is "reasonable". The distribution money comes from the company bank account and is already "taxed" through your quarterly estimates, so if you write yourself a check for 50K, you actually get 50K. Pretty cool, just don't get crazy with it as what is "reasonable" in the eyes of the IRS is not so clearly defined.

No matter what you do, get a good CPA and listen to them. Any advice from the 'Bullet is free internet advice and should be taken as such.

Good luck, -Abone.

 

You want to keep personal money and llc money seperate! The idea is to distance yourself, hence it being a Limited Liability Company. You do not own the company. You are a managing member. You start comingling funds and diluting your legal boundaries, You ll find out the hardway when a lawyer can break thru the llc proving you own it and ran it.

Edit* it appears thats what youre saying too.

 

Speak with a competent accountant. Thats where id start.