The US tax system is a real mess for businesses. Yet, avoiding it is not a deal. When you decide to start your business as a truck fleet owner or LSP, you need to get through the main information about taxes you will have to pay to work legally throughout the US.
The first and foremost rule you need to comprehend about the local tax system is that it is rigid and incorruptible. Thus, taxes should be paid and they should be paid regularly.
Paperwork You May Face With
Even in the truck business, paperwork is imminent. So, you should prepare to keep your papers in order and regularly provide the IRS with reports on your business activity, expenses, income, and your business plans.
Keeping your papers tip-top can be a die-hard task, but you can ease it by getting outsourcing services in SmartProvide. Our financial and tax consultants can grab this job off your shoulders to help you focus on your business, not on the paperwork.
Taxes for a Truck Business: Which to Pay
There are several taxes you may have to pay as a truck business owner. They may differ from state to state as tax legislation is provided on multiple levels:
- Governmental/federal taxes,
- Local/state taxes,
- Taxes for each type of business activity (industry).
In general, as an LSP or a truck driver/fleet owner, you may need to pay the following types of taxes:
- Self-employment taxes that are equal to taxes your hirer pays for you. In the US, it is an app. 15% of your income.
- Federal taxes and state taxes, which are calculated on the basis of your tax declaration. You indicate your income and business expenses and the result is taxed depending on the state laws.
As usual, taxes look terrifying when you get them calculated, but you shouldn’t fear them. There is two pieces of good news for you.
1. You can get tax returns as logistics and transportation are among the industries which have tax benefits.
2. You can decrease your taxes by getting a good reputation in the IRS and by hiring your kids (you don’t need to pay taxes for a salary lower than $4,000 per year).
But the most effective way to make your financial reputation impeccable and develop good relationships with the IRS is to hire a tax consultant to establish order in your papers and get all the tax benefits you are supposed to. Besides, you can get services from the most skilled tax consultants right in SmartProvide. We will gladly help you run your truck driving business in the US with no hassle and tax problems.
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