Hotshot Experience? Anyone?

I will jump in for the 1099 thing...i did it 7 yrs ago almost 8..i worked 1099 for 6 yrs....I am STILL paying on back taxes from 7 yrs ago...I will never do 1099 ever again...and it is worse when you make more as well.

Dosn't make any difference what kind of Business it is, if your getting paid by 1099, then your the Business Owner and our responsible for every Tax regulation. State tax, Federal tax, Double Soc tax, Medicare, Suda, Fuda, Unimployment, Accountant fees, 2 checking accounts. when you write yourself a pay check, you end up with less than half of your Gross. Why do you think a Corporation who pays an employee 50k a year, ends up costing them 70k to 80k

Talk to a CPA about forming a subchapter S corporation or an LLC. It helps offset self employment taxes etc. Used to be if you paid yourself out of the corporation and called it dividends you didn't have to pay social security & medicare taxes. Haven't talked to my CPA yet this year so I'm not sure if that is still true. I did this for about 13 years in my last career and it made things more, uh, comfortable.

Talk to a CPA about forming a subchapter S corporation or an LLC. It helps offset self employment taxes etc. Used to be if you paid yourself out of the corporation and called it dividends you didn't have to pay social security & medicare taxes.

Also look into an IRP Liceanse (get info from your DMV), it allows you to be registered in only your home state, but do interstate commerce.

I see CDL A jobs all the time (in Chicago) on Craigs List that want to Pay by 1099s, so this Thread applies to more than Hot Shot Jobs. some other reasons you need to be an account for 1099s are, manditory with holding of payroll taxes, and quarterly reports. Also you and the Company owner are walking a thin line as to who's a Contractor or an Employee

That thin line between being an employee and a 1099 independent contractor is detailed in IRS regulations and, actually, most so called 1099 jobs are, in reality, employee jobs. There used to be about 25 different statements of "do's and don't's" to determine a worker's status. Companies doing this are just hoping to not get caught. I have not looked at the regulations lately, but as I recall, one of the tests to determine one's status is that you must supply your own equipment; another is that you determine your own schedule as to when you will work and when you will not work.

Lots of great information y'all. I appreciate it. Also, to get off the 1099 issue, what about the outlook for hotshotting? Does it look promising? Or is it something that will fade away?