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

[arangelova77]

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.

[tagteam]

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

[arangelova77]

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. 

[tagteam]

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.

[arangelova77]

I am so thankful for the information! A single-member LLC and sole proprietor - would both report income on Schedule C? 

That brings me to my next question - where is the LLC to be formed/registered? Considering truck drivers reside in the truck.. They don't have an office or sell goods in any state for that matter, rather cross way too many state borders.. Thank you so much again!

[tagteam]

Articles of Organization for the LLC would typically be filed in the state of residence (i.e., your home state).

[arangelova77]

Greatly appreciate your time on this! Thank you!