How To Pay Yourself as a Trucking Business Owner | S Corporation | Owner Operator

How to pay yourself as a truck driver? How to pay yourself as an S corporation? How to pay yourself from your own business? I answer these questions for trucking businesses in this video.
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ABOUT ME:
Hey TH-cam. I'm Brandon Lindsay, a CPA and former trucking business owner. I make content to help trucking business owners, and I help trucking companies resolve their back tax issues with the IRS.
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Disclaimer: Nothing contained in this video should be considered business, legal, tax, or accounting advice. Its content was prepared by Lindsay Accounting LLC (an Indiana accounting firm). This video is for informational and entertainment purposes only and is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties. You should consult with the appropriate professional services provider if you have questions about your specific situation.

[@focused0002]

Thank you. I just expected you to finish with how the profit, as a distribution, would be taxed

[@terrysmith7229]

Thanks. That helped me a lot.

[@lindasherrod9887]

Love the videos, they are so detailed and the examples well put. You're great! Thanks again!

[@brandonlindsaycpa]

Thank you!

[@TruckingPayroll]

Yes!!!!! We agree!

[@thizizitz]

Awesome, best video on this topic, seriously, seen many, but this one was perfect. Thank you

[@brandonlindsaycpa]

Thanks!

[@750count]

Thank you Brandon for explaining this so clearly
Great presentation and easy for someone that knows nothing about this to follow

[@brandonlindsaycpa]

Appreciate that! Thanks for watching.

[@staystrongpeople4942]

Awesome and clear explanation.

[@brandonlindsaycpa]

Thanks

[@alanmos9224]

Finally the information was looking for.. thank you mister..you have new subscriber here

[@brandonlindsaycpa]

Thank you!

[@planebored]

Excellent information!

[@brandonlindsaycpa]

Thanks

[@berekettiramo7495]

Thanks Bro that helps a lot

[@brandonlindsaycpa]

Glad it was helpful

[@bigrigpusher]

Hey Brandon, Excellent information as always. We will be talking about this soon. R Davis

[@brandonlindsaycpa]

Thanks. Yes we will!

[@blackmax3705]

Well spoken

[@brandonlindsaycpa]

Appreciate that!

[@jtselfmade]

This should be an Ebook. Excellent information, great explanation, short and simple 👏🏽

[@brandonlindsaycpa]

Thanks! I thought about that

[@captainbusketttv3159]

Thank you for this video. I was having a heck of a time understanding the downsides to just using distributions for everything. I knew it wouldn't be as easy as "I can just evade paying taxes to the IRS", but your video really helped flesh out what I need to do come tax season.

[@brandonlindsaycpa]

Glad it was helpful!

[@simonkaruri7666]

Good info

[@brandonlindsaycpa]

Thanks!

[@ihohotvshow9607]

U deserve subscription

[@brandonlindsaycpa]

Thanks!

[@derekjimenez286]

Great information! You just got a new subscriber. We just started our trucking company and got our first load this week.

[@swaggertiger49]

I’m getting ready to start mine . Good luck man

[@brandonlindsaycpa]

Appreciate that. Thanks for checking out the video. Congrats on getting your first load!

[@JustinWhite-]

How's it going now? If you see this

[@jeanninemcwhorter919]

Do you have video for C Corp?

[@brandonlindsaycpa]

This is the other video I mentioned. The one I made about paying yourself as an owner-operator with an LLC: th-cam.com/video/UZ0bY4i7-RI/w-d-xo.html

[@lnkinc6823]

Great video and I really appreciate it however I did get a little confused at the end when you were saying that the 40,000 goes on the 1040 so does that mean now it's being taxed because you're putting that 60,000 from the W2 along with the 40,000 from the K-1 on the 1040 so does that mean that the 40000 is being taxed thank you

[@467inc]

With my trucking company I started a c corp . Im an employee under my c Corp so I have a salary that takes taxes out on me as an individual at the end of the year I would get a W2. to file my taxes under my seat c corp. Still a little confused about making distributions to myself do a video about that please. I think you going to distribution in this video but the difference is I have a c corp

[@realestateinvirginia]

Thank you for the explaination - very helpful. How or what program is recommended to use to actually pay yourself and file with the IRS? I was looking for an email for you but cannot find one.

[@TrueReviewGuy]

Hey Brandon thanks for the videos...16yr driver new S corp owner operator...looking for guidence

[@conniemyers1854]

Hey Brandon...I love your videos they are very informative. We are single LLC S corp just starting out with a leased truck. My question is what do most use for payroll software? QuickBooks payroll?

[@brandonlindsaycpa]

Thanks. I like ADP for payroll.

[@josephcampbell4401]

Mann!!! Are you for hire??? Cpa's like you that break it down into layman's terms for us are hard to find!!

[@mj482]

Can you eo a video for C corporate

[@johncrooke7658]

Question, i got all of the white board. Great information. Question, after John D. K1 added with W2 = 100000.00 . Is john D paying taxes on 60000.00 or 100000.00 reported income. Thanks

[@codyjames568]

What about profits that aren't distributed, and remain within the company accounts for growth? Any taxes? Or do all profits have to be distributed every year?

[@ecbc900]

Incredibly informative video. One question; Does John pay taxes for that 100K in profit on his 1040?

[@jonplay3602]

Please tell me how I take disbursements though. When do I pay myself that $40,000? Is it I paid alongside my W2 pay or do I wait till the year in and pay myself the whole 40,000 at once?

[@larryh3658]

One of the best videos explaining this!

[@sikanderkhan8383]

what taxes John will pay on distribution , can you explain

[@TheDooDahMan1972]

How is the $40,000 distribution taxed? My understanding is that the shareholder is not subject to self-employment tax on the $40k, but there would be capital gains(?) tax.

[@crownchrist]

What if started co. as INC then S-corp election ?

[@Sam-od4en]

How to pay yourself if your an owner operator of your leased on to a company

[@2000xb]

Is it smart to pay all of your bills with a company credit card to get points, air miles, etc.? Can you make a video on it possibly of some good cards?

[@brandonlindsaycpa]

It just really depends on your situation. Personally I like getting points.

[@iamtheclout1912]

I just recently went to S Corp and I hate it. Can u please help me voluntarily revoke it

[@EduardoSilva-xe3gp]

So you don't pay taxes on the 40k?

[@paulmeek537]

So Brandon, I'm guessing John Doe would pay only income tax on the 40k profit?

[@portiagts9416]

Hello Brandon I have a question. If John Doe doesn't take the 40k distribution is it still reported on the K1 (1040)? Is that retained earnings?

[@noneyabeeysnass8283]

At 9:54 in the video, Brandon explains it.

[@AmanAndHisTruck123]

I have an s corp and this is my first year being an s corp but been sole the past few years, based on your example, do I get taxed on the 100k on my 1040? And on k-1 do I pay that tax on that too ?

[@brandonlindsaycpa]

Here's what's happening in this example...
You are paying taxes on the 100k on your 1040. You receive a W-2 from the company for 60k. You report that income on your 1040. You receive a K-1 from the company for 40k. You report that income on the 1040 as well.

[@det3135]

Do what happens to the 40k business profit does that sit in the bank free untaxed?

[@brandonlindsaycpa]

In this example, John is paying income taxes on the $40,000 on his personal return (as business profits) regardless of how much of it he takes as a distribution. So John would probably take some of the $40,000 and use it for taxes.

[@Niishkami]

If John took a distribution of 20k instead of 40k, is John paying any additional taxes on his personal tax return for the 20k distribution ? Is he also paying additional taxes on the business side for the remaining 20k?
Lastly, is this formula the same if the LLC had two owners or if the company was an actual S corp and not an LLC?

[@brandonlindsaycpa]

In this example, John is paying income taxes on the $40,000 on his personal return (as business profits) regardless of how much of it he takes as a distribution.
This example is what it would looks like when an LLC elects to be taxed as an S Corporation. It would be different if there were two owners.

[@lumbee300able]

@@brandonlindsaycpa how would it be different for 2 members? As this would apply to our LLC, we have fully started on the road and would like to start out payroll as S-Corp with 2 members only? Thanks

[@gregorypaigeii1426]

@@lumbee300able
.

[@gdotone1]

wait, that 40,000 dollars is still taxed right? at a different rate?

[@swaggertiger49]

Are you running big rigs or duallys

[@brandonlindsaycpa]

I was running a dually, but my clients have duallys, big rigs, and box trucks.

[@yuricarrion2991]

Okay so but I have to add also my schedule c on my 1040 right? Plus my k-1 . In other words my 1040 will be mu w2 , my business report schedule c and k-1. Right???

[@brandonlindsaycpa]

Here's what happened in this example...
There is no Schedule C. There is a W-2 from the S Corp and then there is a K-1 from the S Corp which reports the business profit. Both are included on the 1040.

[@yuricarrion2991]

@@brandonlindsaycpa oh I get it, thank you so much 😊

[@brandonlindsaycpa]

@@yuricarrion2991 Great! You're welcome.

[@lilosama146]

How long have you been in the business?

[@brandonlindsaycpa]

I got started in 2017.

[@JonathanGonzalez-br2sm]

So for a trucking business would I be able to use the distribution money for maintenance and breakdowns or would I have to use money coming out of my payroll check?
If I am able to use the distribution money for repairs and maintenance then would I still have to save the receipts and file those expenses during tax time? I am doing S Corp 50/50 with my father how does the payroll work if we are only going to be using one truck for now. I will be the full-time driver and he will still continue his personal job, does my father still have to be on the payroll or does he just receive distributions tax free?

[@anthonym7130]

Did you ever figure this out because I am also in almost the exact same boat with my father.

[@DISELMEDIALLC]

@@anthonym7130?? Any luck

[@PaulOfPeace54]

Distribution money is not used for maintenance. Maintenance etc. is an operating expense.

[@AdamVasquez-vk5fy]

I'm striving to get a 2 car hauling company started and I'm going 50/50 with my mom. Did u figure out how payroll work

[@truckerraven.8906]

Great video! so you will pay federal and state tax on the $40,000 from the company, And the $60,000 you paid yourself.
But you only pay the pay role tax 15.3% on the 60,000 you paid yourself.
the $40,000 is not touched by the payroll tax.
Nice!

[@brandonlindsaycpa]

Thanks!

[@goodvibezz766]

So did he make 80000 or 40000

[@goodvibezz766]

Nvm

[@fresh5237]

if I run my own llc but wanted to pay my self through adp should I switch to llc beening taxed as scorp are stay llc

[@matthewspurgin4220]

obama

[@Roughnecks_logistics]

Hey bud could you give me a call ? Or email ? I have a few questions