Do Most Trucking Jobs Allow You To Work Using An LLC?

I recently got a trucking license in California.

I also have an LLC that I established in California before getting the license.

I usually prefer working through my LLC and billing people using my business name (1099), instead of being paid directly via W2.

Do most trucking jobs/companies these days allow you to be paid via 1099 to your own LLC, or do they require that they pay you W2?

I'm referring to getting paid to my LLC as a company driver (not as an owner operator or owner of a truck).

I know owner operators are able to use an LLC as they own the truck.

However, I don't own a truck. I want to be a company driver, while at the same time I want to get paid to my LLC.

Would most trucking jobs in the industry today allow this?

The reason I prefer to work through my LLC instead of being paid directly to my own name is because my CPA helps me a lot with deductions, and I prefer working this way.

No, you can't enjoy the benefits of being an LLC and a company driver at the same time. It would be illegal for the company to treat you as a private contractor (LLC), avoiding employer payroll taxes if you are in fact doing company work in the company's equipment at the company's direction.

Turtle's answer is very accurate with one caveat...

You will find there are a few companies willing to do what you want. We do not advocate working for such places, but they do exist. They are shady operations who skirt around on the edges of the law. If they are willing to break the law to save themselves a few bucks, you can bet they will do anything they can think of to cheat you out of money also. Don't do it!

You need to realize it is not only the company who is breaking the law, but you would be too. You must be an independent contractor to do what you are wanting to do. To be an independent contractor in the trucking business, you are required to own the truck.

Hey James, here's a piece of advice you didn't ask for. It comes from a long time business owner who's accountant once told him, "I always enjoy visiting with you. I feel like I learn something every time we talk." You need to find a new accountant. Yours is whacky!

I'm not giving legal or tax advice, but you could certainly ask your cpa about filing exempt. If you had a zero tax liability the previous year and expect to have a zero liability the next year.

Then if your wages from the w2 earnings are paid to your LLC and you have enough write offs to off offset the incoming wages you will in theroy net a zero tax liability.

Keep in mind though, that if you don't have a zero liability, you're responsible for taxes on the profit.

Overall though, the idea is that if you were a labor only subcontract that you would get paid more than a company employee to compensate for the business overhead and expense as well as handling your own unemployment taxes, etc

Unfortunately as with most businesses, the government is just in the way. Like it or not, for reasons that really seem to benefit everyone except the driver, we can't be independent labor only subcontractors in this industry. We have to have our own authority and truck essentially.

The department of labor has put out a new anti independent contractor law that essentially will do away with business owners being able to lease onto a carrier and or lease purchase. The driver will have to have their own authority, insurance and equipment. This goes into effect in March.

James, exactly how does your CPA “help you with deductions”?

Sounds like either he or you or both of you are talking about “creative” deductions that aren’t going to be legit. Are you two already doing that in other areas? If so, that will eventually catch up with you and it could be a bad experience. If you want to drive a truck, it’s best to become a company driver. Less risky.

This is Cali.... AB5 is causing companies to not even lease to drivers and run them as 1099 with them paying all expenses. It is a "misclassification" law.

Go check out AB5. NJ and CA has caused companies to hire company drivers only.

My guess is you could find a disreputable company who would do anything, but insuring a new driver is very expensive.

This is Cali.... AB5 is causing companies to not even lease to drivers and run them as 1099 with them paying all expenses. It is a "misclassification" law.

Go check out AB5. NJ and CA has caused companies to hire company drivers only.

My guess is you could find a disreputable company who would do anything, but insuring a new driver is very expensive.

The DOL has quietly removed and replaced Trumps law requiring 1 of 2 bars to meet and replaced it with one very similar to AB5, only it has 6 tests, but not require the same ABC that AB 5 does. It's very close. Goes into effect March 11. It's federal so nowhere to evade it.

Yeah but Cali where he is keeps AB5 which is more strict... at least that is how I read it. Am i wrong ?

Yeah, so it's even tougher still. I don't see how owner ops can afford to be based out of Cali

I was just out there, flew out for a cermony and short visit with my kids and grandkids.

First thing I noticied in the central valley was diesel was almost 7.00 a gallon. Ouch.

I saw still many older trucks running down the road. They may have been retrofitted with compliant motors or not. They were currently registered in Ca though.

I talked with a guy I’ve known for over 30 years. He had a newer 389 and he said all this stuff between CARB and AB5 has put alot of companies out of business. He’s been a hay hauler all the years I’ve known him.

I drove by a yard and it looked like all the equipment was parked. The company used to be very large and hauled tomatoes and other farm products. They always ran year round between the contracts for the different products.

I have a feeling Ca is going to really hamper themselves more and more and create a much worse economy out there.