I'd like to do it the most simple way without complicating it and of course reap the most benefits of who receives the tax incentives. If the S Corp pays all expenses and I receive a W2 then that would be pretty straight forward and I wouldnt have any personal write offs.
I'd really like to have it set up the exact same way as most trucking companies hire on drivers. This would be the driver owns his own truck and trailer, truck insurance, etc and receives a higher % of money from the business as compensation. This would get paid through a 1099 and the driver would be able to write off expenses from there. I dont know if a 1099 is legal with a S CORP. I havent found anywhere saying that it is - just places saying it is a waste to pay yourself this way. However, I dont think the people advising people to stay away from this method are factoring in businesses that have as many write offs as a trucking company does. A 1099 truck driver is completely normal in the industry.
Would the S Corp need to pay me a salary for being an owner say $35,000 a year in addition to paying me a 1099 as a self contractor? Would paying myself a 1099 eliminate the need to W2 myself?
As a W2 employee I have seen payroll service, such as Gusto, have an option for vehicle reimbursement, which is nontaxable on the W2. This would still not allow me to write off the truck if I were to be entirely a W2 employee and I'm not sure how this money works come tax time.
I'm not interested in seeking any other professional help aside from my tax professional. He has already pointed me in a direction that he is comfortable with and has done before. In the event of an audit, I would be more comfortable following advice from him and he would be able to help.
However, to maximize simplicity and tax incentives for myself, I am turning to you guys hoping that you may have experience with a similar scenario where the owner of the S Corp is also one of the drivers who would typically be paid as a 1099 contractor.
