Question

Truck drivers paid with 1099 / Is it better to form LLC?

Forum|Forum|6 years ago
August 12, 2019
1 reply
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Hello. My husband is a truck driver. He doesn’t have his own truck - his current employer hired him and is paying him with 1099 (not W2). So my husband is like self-employed? He is planning on registering LLC - is this better for tax purposes? I read he need to report taxes quarterly, and do an estimate. So far we have always filed joint return but he wasn’t working and I have W2. How are we to file jointly, when he will have LLC? What about state taxes - are they to be filed where the LLC is registered? Is there a specific regulation for truck drivers. Where should they file state taxes: where the company that has hired them is based, or based on the state of residence? And in general - is it better to form LLC if self-employed and report income on EIN, or report income as individual on SSN? Thank you.

A

Anonymous_

Employee

Did the following response not answer your questions? Do you need further assistance?

https://ttlc.intuit.com/community/taxes/discussion/truck-driver-taxes/01/823776

A

arangelova77 Author

I definitely need further assistance.. My husband does not have any benefits with his current employer. While he travels, he has expenses (food, clothing, etc.) - not sure if this even counts for expense. Not sure which is better from tax filing point of view - form an entity, or report income under own SSN, and if the latest is the same as being sole proprietor.

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Anonymous_

Employee

He can still deduct expenses regardless of whether or not he forms an LLC or simply operates as a sole proprietor.

Actually, in this case, it makes little difference since a single-member LLC is disregarded for federal income tax purposes, so he would be reporting his income and expenses on Schedule C.