Ok my SIL told me that since Jackson owned his own business & is the only driver that we don't need a 1099? Is that right or what?
She told me to add all the straight bill of lading together & show what we made. Something isn't right about that. So I need some expert advice from so of you hot shot drivers.
P.S. he pulls cargo trailer. Thought I would just let you know so you know what type of work I'm talking about, so the pay goes straight to him when he get the trailer where they are going.
mhlogistics
Sounds like he gets paid cash on delivery from whoever receives the trailers? If thats the case this sounds right. Just add up what he's made and deduct all expences and pay the taxes on whats left over.
alicia
Thank you so very much.
admin
LLC not separate tax entity
Hope these tax laws help. Rose
A limited liability corporation, commonly called an "LLC," is a business structure that fits somewhere between the corporation and the partnership or sole proprietorship. Like owners of partnerships or sole proprietorships, LLC owners report business profits or losses on their personal income tax returns; the LLC itself is not a separate taxable entity. Like a corporation, however, all LLC owners are protected from personal liability for business debts and claims -- a feature known as "limited liability." This means that if the business owes money or faces a lawsuit for some other reason, only the assets of the business itself are at risk. Creditors can't reach the personal assets of the LLC owners, such as a house or car.
A Small Business
Small Businesses must fit into one of the following categories:
Wholesale Business: Annual sales of four million dollars ($4,000,000) or less during its fiscal year.
Service Business: Average sales of five hundred thousand dollars ($500,000) or less for the current preceding three (3) fiscal years and who employs no more than twenty-five (25) persons.
Retail Business: Annual sales and receipts of five hundred thousand dollars ($500,000) or less.
Manufacturing Business: Employs no more than one hundred (100) persons
