May 19, 2025 • 44 mins
Truck to Success, Develop Business plan, Equipment Tractor Trailer, Equipment Financing, Insurance, Owner Operator Authority, Drug & Alcohol consortium, Permits, Taxes Business structures, Entity Choice, Brokers, Factoring and Trucker Expenses. Trucking Succes depends on cost per mile and income per mile. Determine cost for truckers per mile fixed and variable costs. #trucker
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Tax Talk 4 U is broadcast live Mondays at 10AM ET and Music on W4CY Radio (www.w4cy.com) part of Talk 4 Radio (www.talk4radio.com) on the Talk 4 Media Network (www.talk4media.com). Tax Talk 4 U is viewed on Talk 4 TV (www.talk4tv.com).
Tax Talk 4 U Podcast is also available on Talk 4 Media (www.talk4media.com), Talk 4 Podcasting (www.talk4podcasting.com), iHeartRadio, Amazon Music, Pandora, Spotify, Audible, and over 100 other podcast outlets.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
The topics and opinions express in the following show are
solely those of the hosts and their guests and not
those of w FOCY Radio. It's employees are affiliates. We
make no recommendations or endorsements for radio show programs, services,
or products mentioned on air or on our web. No
liability explicitor implies shall be extended to W FOURCY Radio
or it's employees are affiliates. Any questions or comments should
be directed to those show hosts. Thank you for choosing
(00:21):
W FOURCY Radio.
Speaker 2 (00:27):
Barry G.
Speaker 3 (00:28):
Fouler EA brings you tax talk for you right here
on W four CY Radio and talk for TV. As
an enrolled agent and a national leader in tax resolution
as well as Trucker bookkeeping and tax planning. With over
thirty years of experience, Barry will break down taxes, bookkeeping,
(00:49):
tax planning, and tax relief for individuals and businesses just
like you. So let's have some tax talk for you
with your hosts.
Speaker 2 (00:58):
Barry G. Foul Or.
Speaker 4 (01:02):
Hey, good morning USA, and man, it's a great month morning.
Speaker 2 (01:07):
I know.
Speaker 4 (01:07):
We had a long weekend driving from basically Houston up
to Lubbock and back, all within roughly twenty four or
thirty hours somewhere around there. The daughter was heading out
to do some study abroad for event, so it was
kind of cool. In one of these days, we're gonna
(01:29):
have to do a program farm taxes and stuff because
a lot of truckers also do some ranching or some
farming too, so it'd be good to have some good
information on that. And if you happen to be one
of our clients that does trucking and ranching and that
program would be good for you. You know, we're trying to
(01:49):
figure out what are we going to talk about this week.
We're going to talk about truck to success. A truck
to success, you know, it means trying to be a
successful owner operator truck driver. You're running your own business.
So I had to, you know, sit back and go, hey,
what are we going to do? Well, it's Google this,
and so I googled how to be a successful owner
(02:12):
operator and I love. You know, sometimes we do Google
and you do this AI overview that they give you,
and it says here to become a successful owner operator.
It's crucial to combine driving skills with sound business practice,
including understanding the freight market and managing finances. Effectively. Hey,
(02:34):
that means good bookkeeping, building a strong business foundation, knowing
where you're at and where you're going. Hey, again, there
a good reason for some good bookkeeping. And then they say,
by focusing on these key areas, owner operators can navigate
the challenge and achieve profitability in the trucking industry. We
wish it was that simple. I mean we all wish
(02:55):
business could be that simple. You know, if you could
do the these couple things, now, all of a sudden,
you are a successful owner operator. Hey, it doesn't have
anything to do you know what market rates are for
the loads that you're going, or how people undercut this
market and they're driving and transporting goods that they can't
(03:16):
even afford to do at the price of fuel and
maintaining their equipment or at least payments. You know, they
think they have to do this to make things work. Now,
here's what I really recommend you as an owner operator
or maybe you're wanting to become an owner operator. There
is a great seminar called Truck to Success. Now it's
(03:39):
not our seminar. The seminar is put on by oh
Ida Foundation. So if you go and search up truck
to Success, google it and it will take you to
hopefully oidea dot COM's at online Education truck to Success.
The seminar is going to be held on October twenty
(04:01):
first through the twenty fifth or twenty third in Blue Springs, Missouri.
Now they also offer you know, being able to watch
and participate in this via zoom. I suggest you get
in and register. Now you get some really good benefits.
I'm going to be there and I'm going to be
talking about bookkeeping, tax's, lease, purchase, entity choice, all those
(04:29):
things I'm going to get to talk about. But even
better than that, we get to sit in the lobby
after the seminar or every evening and top Trucking. You
guys get to tell me, Hey, why you're looking to
become an owner operator or maybe you're already an owner
operator and you're just coming to improve your business because
there's a lot of information here. And I sit through
this seminar every year and get to listen and listen
(04:52):
to oida's staff and the foundation talk about trucking and
everything it takes to be an owner operator. And sometimes
I'm amazed that the rules and regulations that all the
owner operators have to go through have to follow, and
(05:13):
if you're leased on to somebody, you know, hey, sometimes
it's a little bit easier if you're going to go
and operate under your own authority. Sometimes you have a
lot more difficulties out there. The tractic success is going
to feature the trainers from OIDA and trusted experts like
(05:33):
myself and you know, so we're in contact with owner
operators on a daily basis and you know, trying to
get you as much information as possible. So you're serious
about your desire to become an owner operator or improve
your business, then come to this.
Speaker 2 (05:51):
Again.
Speaker 4 (05:51):
It's October twenty first to the twenty third. Hey, you
know what, even the fees to attend the seminar are
tax deductible for your business, So why not spend the
time to come up and learn. Hey, you may be
having this great desire to become an owner operator out
there and you may come to the seminary and go,
oh man, this isn't for me. Maybe this isn't more
(06:14):
than I really want to bite off into that. I
just want to stay a W two driver because it's
so much easier. Being in business isn't for everybody, and
being in business for yourself. You've got to be driven.
And it doesn't matter what business you're in, whether you're
going to be an owner operator, whether you're going to
operate a retail store, you're going to be a consultant,
(06:34):
whatever business you're going to be in, you have to
be self driven. See, when you are an owner of
your own business, nobody makes you get up in the
morning to get your paycheck. You have to earn it
every day. Earn it through taking care of your clients,
your customers earn it, but by providing the services that
(06:55):
they're paying for in the best possible way. Now, when
you you are an owner operator, you've got to make ends. Meeting,
you've got to make money. You not only just have
to pay the bills for business, but you've got to
pay yourself and pay the tax man. Unfortunately, that happens too.
So you know, get in registered trusts, success, come out
(07:18):
there and joy and join us. Hey, I say, being
in person is so much better than being on zoom
or watching this. Virtually, you're going to learn a lot
either way, but you learn so much more being there
with other people that are looking to become owner operators.
Being there to where we can sit in the lobby
(07:39):
and talk. Even sometimes I get staff with o IDA
to come out and join us in the lobby and
continue talking and having a conversation. There's nothing better than
having that conversation to learn a lot more about what
you need to do as a truck or as an
owner operator. You know, whether it's the bookkeeping sideway, that's
(08:00):
the tack side or entity side, it's all the information
that you need and sometimes things that are happening in
your life, you've got to look at how it's going
to affect you. So the things that you're going to
get at TRUCGIC success, You're going to learn how to
develop a business plan. You know what should be in
(08:22):
the business plan. How to borrow money. You've got to
when you're going to borrow money, you definitely have to
have a plan. Now you can go borrow money or
at least a truck or be leased on at least
a truck from them. Sometimes, you know those walk away
leases you'll hear Louis and other people at OI I
(08:44):
DA talk about. You know, they walk away with your
money is what generally happens. But they'll go through the good,
the bad, the ugly of the information out there. You know,
you're going to be talking about business plans, exploring short term,
mid term, long term goals and how to track them.
(09:07):
It's you've got to learn how all the costs of operations,
including fixed costs of variable costs, and what those different
costs are and how you can actually control some of
those expenses and you know, assets and liabilities and then
managing all this and managing the costs. You've got to
(09:28):
develop something that's very realistic and looking at the freight
and the freight costs that you're going to have using
load boards, spot market versus contract rates, how to figure
a fuel surcharge advantages and some disadvantages and things that
(09:48):
you need to include in your business plan. You know,
they walk you through this. They help you through this
so that you can develop the business plan that is
right for you, you and your business, and you to
help determine what you need in reserves in cash to
(10:08):
make it through the short term while you're waiting and
working on expanding your revenue base and your income that's
coming in so that you have the knowledge to build
this business. After this break, we're going to start talking
a little bit about equipment. You're going to need new
versus used. We'll talk about that in just a minute.
Speaker 3 (10:32):
We have only scratched the surface of today's show. Please
stand by as Barry G. Fowler will be right back
with tax talk for you. If you own the IRS
or are going through an IRS audit, don't go at
it alone. Called Taxation Solutions tax Relief that eight eight
(10:52):
eight nine three zero one zero one six. We are
your solution for IRS tex audits, back taxes, garnishments, leans
and levies. Whether you're an individual or business, you need
a solution and a strong aggressive tax resolution.
Speaker 2 (11:12):
Don't let the IRS walk all over you.
Speaker 3 (11:15):
Stop the IRS now call eight eight eight nine three
zero one zero one six or go to Taxationsolutions dot
net now for a free no obligation consultation. Let's get
back to tax stock for you with more tax stock
(11:36):
once again.
Speaker 2 (11:37):
Here's your host, Barry G. Fowler.
Speaker 4 (11:42):
Hey, welcome back. Before we get too far in this,
if you are an owner operator out there, truck driver
looking for bookkeeping and tax services, and we've got a
great low rate and special going on right now. Of
about it simply twenty five dollars a week or one
truck operation. We manage all your bookkeeping for you. As
(12:05):
a matter of fact, if you're not a member of
O I d A, we'll pay for your first year's
membership out there with o IDA. So call us, let
us know that you're looking for the low rate, and
let us know that you're looking to become a member
of Old Idea and we'll take care of that for
you as well when you sign up for bookkeeping with us.
(12:26):
And we're talking about equipment, now, I hear this all
the time. You know, hey, should I buy this new
piece of equipment or should I buy this used piece
of equipment? You know a lot of times it's you know,
personal choice. But one of the advantages you have of
a new truck you can spec it to your operation.
But you need to know, hey, how are you planning
(12:47):
to operate? What kind of loads you're going to be carrying,
And you can kind of get carried away out there
in the cost of it. And a new truck could
also be better, you know, in fuel mileage as well.
So you know, what you want to do is be
able to sit down and and figure out exactly what
(13:09):
you're looking to drive. Now, when we're at Truck to Success,
you know, they talk about learning about specific tools that
are out there to help you spec the truck for
your operation. You know, it's a ten speed better than
an eighteen speed? What gear ratios entire sizes should I
(13:31):
use for my operations that gives you the best duel,
miledge and power. You know that's not stuff I do
as a tax guy, but oh I DA definitely can
talk to you about this in this in the seminar
Truck to Success is a great place to do it.
You know, also, you know what kind of warranties you
should be looking for. Make sure you get everything in writing.
(13:56):
You know, when you're talking to Old Idea, they're not
bound to any manufacturers, so they're going to kind of
help you walk you through what o Idea has experience with,
you know, different engines and truck manufacturers out there. They
can also talk to you a little bit about life
cycles and new trucks, which is really kind of cool.
(14:19):
And then other costs that you may have such as
newer emissions, maintenance you're wanting to go into California or something. Man,
you've got to have a newer truck. You can't have
one of the older trucks out there because of the
emissions requirements. And then you know there are odd states
out there that have lemon laws for trucks as well,
(14:41):
so you know where you buy it could be important.
Now there's huge trucks out there too. You know what
they're going to show you is some ways to find
out how a truck has been abused, how it's been abused,
how they've been taken care of. Walk you through a
little bit of you know what you need to do
(15:01):
to check the truck out and where you're going to
find most of the red flags. Should you ask for
an oral analysis? Should you ask for the last ECM reading?
And how to read and look for potential problems with
the truck engine transmission? The things you can learn. Now, hey,
(15:22):
if you've been an owner operator, you know a lot
of this stuff. Maybe you don't know, and you've had problems.
We've had a lot of clients they bought us trucks.
Thank god, they bought the warranty and they're getting it mixed.
One of the big problems they have is equipment of financing.
You know, when you when you walk out and you're
(15:43):
going to find a piece of equipment that you want.
And this goes in any business out there, and whether
you're buying new or used, and you're going to go
through some kind of financial institution, it's going to depend
sometimes on your credit score. Some of the truck companies
will loan you the money at a very high interest rate.
(16:07):
Read your loan document. There are some loan documents we've
seen don't even disclose interest rates to you. It was
a lease least purchase, and the interest rates were actually
closer to thirty percent. But if you don't read and
don't look at the numbers out there, it can cost
you an arm andal ay and more than you can
(16:28):
actually afford. So you really need to look at what
you're getting into tru success. We've talked about, you know,
learning what lenders concentrate on, such as tradelines, both negative
and positive tradelines will be discussed, and what lenders look
(16:49):
for on credit applications or with the magic score on
the credit application. And then the pros and cons of
various financing operations options out there, such as loans or
finance lease, residual lease, lease purchase. Should you purchase a trailer,
pros and cons of various trailer types. Maybe you're gonna
(17:13):
lease on with somebody that they're going to provide to
the trailers. We have a lot of people that do that.
They buy the tractor and the trailers provided from where
they're leased on. So there's a lot of options. Need
to sit down and look at it, you know, so
when you're buying a truck, you know way all the
options you have out there, so that you know do
(17:35):
you buy the new use by how the financing.
Speaker 2 (17:40):
Is going to go.
Speaker 4 (17:41):
You've got to look at all that so that it
makes sense for you and your business. And you've got
to remember you've got to cover that payment. And if
you're leasing a truck from where you're leased on and
then all of a sudden you're towards the last year
of your lease and the loads slowed down, are you
going to continue to pay for this lease or are
(18:01):
they taking the truck back in your sol You know,
those are some of the things that we talk about
in Truck to Success Seminar, so that you know, hey,
you've got information in your hands to make good, solid decisions.
Speaker 2 (18:18):
Now.
Speaker 4 (18:19):
Trust success. You know, it's it's about you and your
business making your business a success, because that's the key.
It's the way you stay in business. See whether you'ren owner, operator,
truck driver, or small business owner. It really doesn't matter.
You have to be successful. That doesn't mean break even.
(18:40):
That means bringing in enough money to support you and
your family and pay the taxes. Ye pay the tax
got to pay the tax guy Uncle Sam needs its
cut of everything you do as well. So you've got
to plan. You've got to have the right equipment and
the right financing, and then you got to start talking
(19:01):
about insurance and the types of insurance that may be required,
and the amounts of insurance that is required that is
set by the Federal Motor Carrier Safety Association, and then
other types of insurance that you may need if you're
operating under your own authority or if you're leased to
(19:21):
a carrier. So let's say, for example, you decide to
hear an elites on. It is a carrier who's generally
responsible for carrying the public liability. However, many carriers charge
it back with the premium. You see, those carriers are
making money coming and going moreover their instances, where least
(19:42):
on our operators will not be covered under the carrier's
insurance and you're going to need to carry your own
insurance instead. And then there's some insurance that is optional
that provides extra layers of protection. And then insurance costs
are going to vary on numerous factors, and you know,
(20:03):
it could be your driving brak, be the type of
material that you're carrying, it's tasmad or not. A single
accident can cast your business basically everything you've worked for,
So you're going to need to know, you know, hey,
what is required, what's needed. You can't operate without insurance,
(20:25):
and you've got to actually have it all in place
before you can even begin to get out there and operate. So,
you know, putting that information together and those information is
valuable in developing your business plan as well, Like one
of the first things we talked about is developing that
business plan. Now we're going to take a short break.
(20:46):
When we come back, we're going to talk about your
decision to be an owner operator, whether it's your own
authority or at least on a carrier. We'll be right
back after that.
Speaker 3 (20:56):
We have only scratched the surface of play's show. Please
stand by as Barry gif Fowler will be right back with.
Speaker 2 (21:04):
Taxtock for you.
Speaker 3 (21:08):
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away from your family. Trucker Tax Tools handles all your
bookkeeping and taxes no matter what level trucker you are.
Life on the road can be taxing, but that doesn't
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Trucker Tax Tools makes your life run smoothly.
Speaker 2 (21:29):
Go to Trucker tax Tools dot com.
Speaker 3 (21:31):
For a free guide that will give you the tools
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Tools eight seven seven nine six six two four seven seven,
or go to Trucker tax Tools dot com now and
let the experts keep you trucking. Let's get back to
(21:53):
tax stock for you with more tax stock once again.
Speaker 2 (21:57):
Here's your host, barrygf.
Speaker 4 (22:02):
Hey, welcome back. Hey, don't forget to call truck or
tax Tools here at eight seven seven nine nine six
two four seven seven. Hey, get that low bookkeeping rate,
get started. See you know where you are in business? Hey,
this introductory rate for new clients. Also, if you're not
a member of the oh IDA, we'll pay for that
(22:24):
first year's membership with oh IDA. See creep the benefits
of belonging to IDA. And there's some other good associations
out there that we're associated with the specials coming from
working with oh Ida and working with them on Truck
to Success seminar as well. Hey, right before the break,
(22:45):
we were talking about that big decision should I be
an owner operator under my own authority or should le
sign to a carrier? Hey, in my opinion, listening to
this seminar and being at this seminar every year, by
the way, don't forget to register for Truck to Success
now and get a little bit of discount with them.
That seminary is in Blue Springs, Missouri, or on virtually
(23:08):
on Zoom and it's October twenty first to twenty third.
I hope you're going to come out and be at
Trying to Success and meet me and be able to
sit have dinner with me in the lobby and let's
talk about trucking. But you know, when I look at it,
a lot of the people coming out and becoming an
owner operator. The best way to get started sometimes is
(23:31):
being leased onto a carrier. At least it gets your
feet wet owning and operating a business as an owner
operator and taking that first step being leased on gives
you time, get your feet wet, get yourself established, and
figure out everything you need to be from there and
you might get on a good least. Have many clients
(23:52):
who have gotten on dedicated routes and making a good
amount of money operating on a dedicated out They know
it's consistent, it's there, and they're making good money and
now at least on and they're doing very very well,
and they prefer it to be that way. They don't
want to have to go chase dollars or anything from
(24:12):
anybody out there, or use a broker that's going to
take more money from them as well. But if you're
going to be leased on, you are going to sign
a lease agreement. It is a binding document between you
and the carrier. The one thing you need to, you know,
make sure of is that you are your own person,
(24:33):
You are your own owner operator. You are still running
your own business. You're not being dictated every single thing
under the sun being leased on to the carrier, because
then maybe you might be a W two employee. So
that's something you've got to look at. Sometimes owner operators
(24:53):
are also going to lease their equipment to the carrier
and then so that you may become W two and
the equipment's leads to them. There's a lot of different
options out there. If you're under your own authority or
want to operate under your own authority, you've actually got
to apply through the Department of Transportation. It's not very complicated,
(25:16):
but it can get very confusing, and you need to
make sure that you've got the right advice. Oh Idea,
it is great giving you the advice you need to
fill this paperwork out correctly. Thousands of authority filings are
not filled out correctly and the Department of Transportation does
not qualify you. So you may have sitting there waiting
(25:37):
definitely without knowing. The Department of Transportation isn't very good
at talking to to you. But oh Idea does have
an authority department. We do not We do not help
you get an authority. We will refer you to oh
IDA or some other associations out there that will actually
help you through the process. But oh Idea has an
(25:58):
authority department that I'll actually walk you through this. And
there's potential pitfalls, potholes you may fall into that you'll
never get out of and be waiting definitely, oh Idea
and try to success. Uses a great example about you know,
let's say you want to hazmat there's a whole different
(26:20):
program out there, and hey, you may want to list
that you'll run in all forty eight states, which will
change your insurance rates. So things that you need to
really pay attention to is where you're going to run,
how many states you're going to run, how far you're
going to run. Because of all the impacts that it has,
(26:43):
getting good advice about getting your own authority is key
and also key to going back and developing that business plan,
so you know, not only does affect your insurance rates,
it affects the cost of permits that you'll need to purchase.
And you're totally responsible for all aspects of your business
(27:08):
and there's a lot more paperwork and accountability involved. And
that's all things we talk about at truck Success that
is there. You know.
Speaker 2 (27:17):
The other fun.
Speaker 4 (27:18):
Part is listening to this was the drug and Alcohol
Consortium and requirement and it's one of the most cited
violations from what I understand, because you don't belong as
a owner operator with their own authority to a drug
(27:39):
consortium and it is mandatory that you belong to consortium
and that tests are conducted in a certified lab as well.
There's a lot of owner operators that aren't familiar with
these requirements, especially when you have your own authority. Now,
my favorite part is when we talk about business structure.
(28:04):
That's my part. Now, what I really love talking about
business structure is that they have me come in and
talk about it and wanted me to get out liability stuff. Now,
I'm not an attorney, never wanted to be attorney, and
don't charge legal fees. So when I talk about liability,
I talk about what my friends tell me that our attorneys. Yes,
(28:24):
I have a couple of friends that are attorneys, so
we'll holding it against me. They are good people, but
they basically tell me that if you are the owner
operator and you're the driver of the truck and you
were in an accident, you're getting sued just as much
as your businesses, and the business isn't going to stop
somebody coming through ensuing you because you are still one
(28:47):
of the responsible parties when you're behind the wheel of
that eighteam wheeler. Now, if you have contractors or you
have employees driving for you and they do something wrong,
as long as you've kept your corporate veil in place
and haven't screwed any of that stuff out, the company
(29:08):
should stop the liability at the value or the money
that's in the company. Okay, insurances for that is. Now
what I advise you is if you're talking about business
structure for liability protection is pick up the phone and
call your attorney. Talk to them. Make sure it's structured
right and you are dotting the i's and crossing the
(29:29):
t so you protect yourself and a liability. Now, what
we really talk about is how this entity helps you
tax wise. Single member LLC taxed as a single member
is schedule. See total net income is going to be
tax for Social Security, Medicare and federal income tax and
(29:50):
state income tax. A single member LLC taxed as an escort,
you must have payroll and that payroll is the only
the amount that's taxed for Social Security and Medicare, but
it's also taxed for federal income tax date income tax.
You also receive a K one with net income from
the business, which is also taxed for federal state income
(30:14):
taxes but not taxed for Social Security and Medicare. But
being an s corp owner, if you're working in the business,
you must have reasonable salary faederal. Now, if you're incorporated
and you haven't made the s core election, you're taxed
as a corporation on eleven twenty and you get double taxation,
(30:36):
meaning corporation pays a tax and then distributions to you
are dividends and taxed at your federal income tax rate
on your personal tax return. And you must have payeral
for the people working business. But your money is taxed
at the corporate level and then taxed again when it's
distributed to you at the personal If you make the
(30:58):
s core election, then you're taxed with payroll again and
net incomes tax at federal and state income tax rates.
Multi member LLC can be taxed either as a partnership
or as a escort, but you have to make the election. Now.
We're going to talk about LLC tax as a partnership
(31:18):
right after this break.
Speaker 3 (31:20):
We have only scratched the surface of today's show. Please
stand by as Barry G. Fowler will be right back
with tax stock for you. As an owner operator, you
already spend too much time away from your family. Stop
spending time doing paperwork. Go to Trucker tax tools dot com,
(31:41):
a solution built specifically for truckers. Trucker tax tools dot
Com makes your life run smoothly. Let's get back to
tax stock for you with more tax stock once again.
Speaker 2 (31:56):
Here's your host, BARRYG. Fowler.
Speaker 4 (32:01):
Hey, welcome back. We were talking about LLC's and you
know when we talk about LLCs and inks and escorts
and partnerships, this applies to all small businesses out there.
Are all businesses out there on how you can limit
your tax liabilities as well. But if you are an
LLC and maybe your husband and wife and you both
(32:25):
own the business, we can have it taxed as a
partnership and being taxed as a partnership. Again, you can
limit what is going to get taxed for Social Security
and Medicare by what they allow for partners that are
working in the business should be getting what they call
guaranteed payments. So if you give your partner a guaranteed payment,
(32:50):
that is what is subject to self employment tax, Social
Security and Medicare. Now, guaranteed payment still has to be
a reasonable wage page the person working in the business.
So you as a truck driver getting a reasonable salary
through your guaranteed payments, you will still get tax on
your personal tax return for the guaranteed payment amount. Subjects
(33:12):
of Social Security and Medicare, and the rest of the
money that comes over to you would only be taxed
for federal income in state taxes as well as the
guarantee payments subject to betteral and state income tax as well.
If you happen to be in one of the states,
it does charge income taxes out there. So you know,
(33:33):
those are the kind of the things you need to
look at.
Speaker 2 (33:36):
Now.
Speaker 4 (33:36):
If you're set up as a SOLI providership or you're
set up as a single member LLC, we see the
biggest violation is running payroll for the owners of the
business being that you're on schedule. See, you don't do
payroll because your net income for your business is taxed
for Social Security and Medicare and self employment, so there
is no payroll run and no payroll taxes or payroll
(33:59):
time tax forms unless you've hired somebody out there. The
best thing I tell you is is call Trucker Tax
Tools or go to Trucker tax tools dot com and
register there for us to give you a free consultation
and a free call, or to just pick up the
phone and give us a call here at Trucker Tax
Tools at eight seven seven nine six six two four
(34:21):
seven seven again eight seven seven nine six six two
four seven seven, ask for our lowest rates. If you're
a single truck I want to operator out there. You
know we can start you as simply as twenty five
dollars a week for bookkeeping, and then if you're not
a member of IDA, we'll pay for that membership. Well,
(34:43):
we'd love to have you. I mean, as matter of fact,
staff just told me we got a couple of phone
calls here today already, people getting signed up to get
their book keeping started. Even if you've been working with
somebody else and looking for a lower rate, great service.
You call us here at Trucker tax Tools and go
to Trucker tax tools dot com. Hey, one of my
(35:06):
best things that I love hearing about, And man, I
am passionate about this. They start talking about brokers and factory.
What I'm passionate about is about the factoring side. We'll
get to that in a minute. Sometimes when you got
your own authority out there and carriers owner operators, sometimes
you use broker to find you loads. Make sure you're
(35:29):
doing your due diligence. Some of these brokers with seeing
our scam artists out there, make sure they're bonded and
sure any bonds and the trust. So you know, you've
got to make sure that you have a lot of
these things that are out there and don't get burned
by those those brokers out there. And you know, look
(35:50):
at loadboards and other things because you're going to be
responsible for your own loads and making sure you know,
getting loads so you're not at heading anywhere. Factoring. I
see this all the time. You see people get into
business and you know the first thing they've got to
do is start factoring. Factoring is something that helps you
(36:12):
with the media cash flow, but as a dead end
in my opinion, if your need immediate cash, yeah, sometimes
you've got to use it, but it's hard to win
yourself off of it. And it doesn't seem bad when
it's three percent for or two percent up front on
(36:33):
the invoices, but if you extrapo lay that out to
an annual interest rate, it's quite expensive. You know, if
you're getting hard and charge every single invoice three percent
off of it, when your net income from your business
is running at you know, twelve percent before you pay
that three you know, now you're now you're down to
(36:56):
only a nine percent. Sometimes it's hard to run business
when you cash flow is affected. So we always tell you, hey,
go back to that business plan when you establish it
and you're deciding how much cash you need to have
on hand, give yourself that time in the window to
make sure that if you're invoicing that your collections everything
(37:18):
will be able to keep up cash flows that are
out there. So having that sixty ninety day cash in
the bank or cash readily available you know, whether through
the line of credit or maybe through your own personal
savings out there could really be key and key for
your business. Now we talk about trucking and we talk
(37:44):
about the keys to success. Keys to success is knowing
your costs. Now, we don't just talk about knowing the
costs of hey, your truck payment or your insurance payment,
but all your deductions, your fixed costs and variable cost
what you've got to cover out there through the goods
that you're transporting on a weekly basis, and how you're
(38:09):
going to make ends meet. But one of the best
things is learning how to figure your cost per mile. Now,
not just cost per mile on total costs, but cost
per mile and fixed costs. What is it costing you
to drive that truck per mile on a fixed basis.
(38:31):
You know, your first your fixed costs, your insurance, your
especially if you're paying for insurance yourself, not through your
least your cost is your truck, cost of your trailer.
You know the payments on that, things that don't vary,
Your administrative costs that you're going to be said with
that you're going to have to pay every month. Then
(38:54):
look at all your variable costs. You know, from fuel costs,
repairs and met all these things build in to the
bottom line of your business. And it is good knowledge.
And know what is the cost per mile to drive
your truck? Hey, hey, you learn this is my cost
per mile, but this is only going to pay a
dollar per dollar or what my cost per mile is.
(39:16):
So if it's costed you're forty one cents a mile
and you're going to only collect forty one cents. Well,
that didn't leave you any money. You didn't make anything.
You just drove the truck for somebody else's good. So
you need to know, hey, this is the load, and
this is what I'm going to make per mile on
this load, and how does this make sense determining my profitability?
(39:37):
Or maybe you're going to take a load that Hey,
your cost per mile is thirty five cents, but that
load is only going to pay you thirty cents. Why
do you want to take a load to lose money, Well,
you don't. Loads need to make sense, and the only
way you can make sense of how good a load
is is to know your bottom line costs per mile
cash in, cash out? What does it cost? It mean better? Yet,
(40:00):
I extend this thing out one further. I don't want
to just know what my cost per mile is for
my income, my expenses out there. I want to know
what my cost per mile is including the profit for
me as the owner operator, so that I know that
I am going to make a certain amount of money. Now,
(40:21):
if I'm more efficient at driving this, or I'm able
to save some other costs, it's going to put more
money in my pocket and I'm better. So if I
determine that my cost per mile needs to be fifty
cents and I'm going to have a load out there
that's sixty cents, I'm now ten cents per mile to
the good. So if that fifty cents includes paying myself,
(40:42):
now I can take a load at fifty cents a
mile and know that I can pay myself. If I
got a load for fifty one to fifty two, Now
I'm even better now if I'm able to reduce some
of my fig my variable costs. Maybe I say money
on fuel because fuel prices are down or something, or
I'm more efficient and driving my truck and got my
fuel mileage, or I was able to save some costs
(41:05):
somewhere else in my budget and my plan. Now I've
made more money because I saved money. It's more money
in my pocket versus money in somebody else's pocket. So
cost per mile can be very key. Oh Ida. Actually,
if you go to Trucker tax tols and put it
into the message there, go to Trucker tax tools dot
(41:26):
com and you put into the message I want the
cost per mile worksheet. We'll get the cost pro miile
worksheet out to you absolutely free. So go to truck
or tax tools dot com, go to the contact page,
but please send cost per mile worksheet or just put
cost per miile worksheet. We will get that out to you.
So that you have a tool, whether you're using us
(41:49):
or somebody else, you will have the tool to help
you calculate the cost per mile on your truck. So
don't delay. Go to Trucker Tax Tools, ask for the
cost permile worksheet, put that in on the contact page
and we'll get that out to you as soon as possible. Hey,
this is a great show. I love talking trucking. I
(42:10):
love talking with y'all. We actually had a lot of
questions we're having to answer off air because they are
actually particular questions that are coming in for their operations.
So if you have some questions, go to truck ortax
Rules dot com. Go to the contact page and shoot
some message over there. What I tell you is is
(42:30):
I can share. Go over to Tax Talk for You
like our page on Facebook, or like our page at
tax talkfor You dot com. Never miss an episode. We're
always talking something about trucking. We're going to talk a
little bit about farm and ranch taxes as well out
there in the future. So if you know somebody running
farm and ranch, referm over there. We're here every Monday
(42:51):
at ten am Eastern Time on W four c Y
Radio or Tax Talk for You t TV. But go
to tax Talk for You dot if you like the
page over there. We'll keep you up to date of
everything that we're doing and the next show. But don't
miss us be here every Monday, ten am Eastern time. Hey,
(43:12):
if you do having to missus, catch one of our
podcasts again at tax talkfor dot com. Let us talk
about your taxes, or maybe we'll talk about your tax
problem and let us help you keep your truck on
the road, say more efficient, finding ways to save money
on taxes. And if you're a trucker, next month's Landline
(43:35):
magazine is going to be talking about fifteen different tax
deductions you have as an owner operator. Make sure you
see the magazine. Make sure you see our article talking
taxes and trucking, Taxes and trucking at tax talkfor you
dot Com. And we'll see you next week right here
ten am Eastern time on W four CY Radio. Thank
(43:56):
you very much for everything you do. Have a god
blust week. We'll see you next week right here at
tax TALKFORU dot com.
Speaker 3 (44:05):
Are you an individual or business that wants to understand
taxes and how they affect you. Are you looking for
specific tax advice for self employed business owners and truckers.
Are you behind on taxes and your bookkeeping? Are you
dealing with the irs and ready to have some relief,
(44:26):
then you need Tax Talk for you hosted by tax
and trucker expert Barry g.
Speaker 2 (44:32):
Fouer EA.
Speaker 3 (44:33):
Tune in ten am Eastern Time every Monday right here
on W four CY Radio and Talk for TV. Don't
forget to check this and past episodes at tax TALKFORU
dot com. See you next week at W fourcy dot
com
The topics and opinions express in the following show are
solely those of the hosts and their guests and not
those of w FOCY Radio. It's employees are affiliates. We
make no recommendations or endorsements for radio show programs, services,
or products mentioned on air or on our web. No
liability explicitor implies shall be extended to W FOURCY Radio
or it's employees are affiliates. Any questions or comments should
be directed to those show hosts. Thank you for choosing
(00:21):
W FOURCY Radio.
Speaker 2 (00:27):
Barry G.
Speaker 3 (00:28):
Fouler EA brings you tax talk for you right here
on W four CY Radio and talk for TV. As
an enrolled agent and a national leader in tax resolution
as well as Trucker bookkeeping and tax planning. With over
thirty years of experience, Barry will break down taxes, bookkeeping,
(00:49):
tax planning, and tax relief for individuals and businesses just
like you. So let's have some tax talk for you
with your hosts.
Speaker 2 (00:58):
Barry G. Foul Or.
Speaker 4 (01:02):
Hey, good morning USA, and man, it's a great month morning.
Speaker 2 (01:07):
I know.
Speaker 4 (01:07):
We had a long weekend driving from basically Houston up
to Lubbock and back, all within roughly twenty four or
thirty hours somewhere around there. The daughter was heading out
to do some study abroad for event, so it was
kind of cool. In one of these days, we're gonna
(01:29):
have to do a program farm taxes and stuff because
a lot of truckers also do some ranching or some
farming too, so it'd be good to have some good
information on that. And if you happen to be one
of our clients that does trucking and ranching and that
program would be good for you. You know, we're trying to
(01:49):
figure out what are we going to talk about this week.
We're going to talk about truck to success. A truck
to success, you know, it means trying to be a
successful owner operator truck driver. You're running your own business.
So I had to, you know, sit back and go, hey,
what are we going to do? Well, it's Google this,
and so I googled how to be a successful owner
(02:12):
operator and I love. You know, sometimes we do Google
and you do this AI overview that they give you,
and it says here to become a successful owner operator.
It's crucial to combine driving skills with sound business practice,
including understanding the freight market and managing finances. Effectively. Hey,
(02:34):
that means good bookkeeping, building a strong business foundation, knowing
where you're at and where you're going. Hey, again, there
a good reason for some good bookkeeping. And then they say,
by focusing on these key areas, owner operators can navigate
the challenge and achieve profitability in the trucking industry. We
wish it was that simple. I mean we all wish
(02:55):
business could be that simple. You know, if you could
do the these couple things, now, all of a sudden,
you are a successful owner operator. Hey, it doesn't have
anything to do you know what market rates are for
the loads that you're going, or how people undercut this
market and they're driving and transporting goods that they can't
(03:16):
even afford to do at the price of fuel and
maintaining their equipment or at least payments. You know, they
think they have to do this to make things work. Now,
here's what I really recommend you as an owner operator
or maybe you're wanting to become an owner operator. There
is a great seminar called Truck to Success. Now it's
(03:39):
not our seminar. The seminar is put on by oh
Ida Foundation. So if you go and search up truck
to Success, google it and it will take you to
hopefully oidea dot COM's at online Education truck to Success.
The seminar is going to be held on October twenty
(04:01):
first through the twenty fifth or twenty third in Blue Springs, Missouri.
Now they also offer you know, being able to watch
and participate in this via zoom. I suggest you get
in and register. Now you get some really good benefits.
I'm going to be there and I'm going to be
talking about bookkeeping, tax's, lease, purchase, entity choice, all those
(04:29):
things I'm going to get to talk about. But even
better than that, we get to sit in the lobby
after the seminar or every evening and top Trucking. You
guys get to tell me, Hey, why you're looking to
become an owner operator or maybe you're already an owner
operator and you're just coming to improve your business because
there's a lot of information here. And I sit through
this seminar every year and get to listen and listen
(04:52):
to oida's staff and the foundation talk about trucking and
everything it takes to be an owner operator. And sometimes
I'm amazed that the rules and regulations that all the
owner operators have to go through have to follow, and
(05:13):
if you're leased on to somebody, you know, hey, sometimes
it's a little bit easier if you're going to go
and operate under your own authority. Sometimes you have a
lot more difficulties out there. The tractic success is going
to feature the trainers from OIDA and trusted experts like
(05:33):
myself and you know, so we're in contact with owner
operators on a daily basis and you know, trying to
get you as much information as possible. So you're serious
about your desire to become an owner operator or improve
your business, then come to this.
Speaker 2 (05:51):
Again.
Speaker 4 (05:51):
It's October twenty first to the twenty third. Hey, you
know what, even the fees to attend the seminar are
tax deductible for your business, So why not spend the
time to come up and learn. Hey, you may be
having this great desire to become an owner operator out
there and you may come to the seminary and go,
oh man, this isn't for me. Maybe this isn't more
(06:14):
than I really want to bite off into that. I
just want to stay a W two driver because it's
so much easier. Being in business isn't for everybody, and
being in business for yourself. You've got to be driven.
And it doesn't matter what business you're in, whether you're
going to be an owner operator, whether you're going to
operate a retail store, you're going to be a consultant,
(06:34):
whatever business you're going to be in, you have to
be self driven. See, when you are an owner of
your own business, nobody makes you get up in the
morning to get your paycheck. You have to earn it
every day. Earn it through taking care of your clients,
your customers earn it, but by providing the services that
(06:55):
they're paying for in the best possible way. Now, when
you you are an owner operator, you've got to make ends. Meeting,
you've got to make money. You not only just have
to pay the bills for business, but you've got to
pay yourself and pay the tax man. Unfortunately, that happens too.
So you know, get in registered trusts, success, come out
(07:18):
there and joy and join us. Hey, I say, being
in person is so much better than being on zoom
or watching this. Virtually, you're going to learn a lot
either way, but you learn so much more being there
with other people that are looking to become owner operators.
Being there to where we can sit in the lobby
(07:39):
and talk. Even sometimes I get staff with o IDA
to come out and join us in the lobby and
continue talking and having a conversation. There's nothing better than
having that conversation to learn a lot more about what
you need to do as a truck or as an
owner operator. You know, whether it's the bookkeeping sideway, that's
(08:00):
the tack side or entity side, it's all the information
that you need and sometimes things that are happening in
your life, you've got to look at how it's going
to affect you. So the things that you're going to
get at TRUCGIC success, You're going to learn how to
develop a business plan. You know what should be in
(08:22):
the business plan. How to borrow money. You've got to
when you're going to borrow money, you definitely have to
have a plan. Now you can go borrow money or
at least a truck or be leased on at least
a truck from them. Sometimes, you know those walk away
leases you'll hear Louis and other people at OI I
(08:44):
DA talk about. You know, they walk away with your
money is what generally happens. But they'll go through the good,
the bad, the ugly of the information out there. You know,
you're going to be talking about business plans, exploring short term,
mid term, long term goals and how to track them.
(09:07):
It's you've got to learn how all the costs of operations,
including fixed costs of variable costs, and what those different
costs are and how you can actually control some of
those expenses and you know, assets and liabilities and then
managing all this and managing the costs. You've got to
(09:28):
develop something that's very realistic and looking at the freight
and the freight costs that you're going to have using
load boards, spot market versus contract rates, how to figure
a fuel surcharge advantages and some disadvantages and things that
(09:48):
you need to include in your business plan. You know,
they walk you through this. They help you through this
so that you can develop the business plan that is
right for you, you and your business, and you to
help determine what you need in reserves in cash to
(10:08):
make it through the short term while you're waiting and
working on expanding your revenue base and your income that's
coming in so that you have the knowledge to build
this business. After this break, we're going to start talking
a little bit about equipment. You're going to need new
versus used. We'll talk about that in just a minute.
Speaker 3 (10:32):
We have only scratched the surface of today's show. Please
stand by as Barry G. Fowler will be right back
with tax talk for you. If you own the IRS
or are going through an IRS audit, don't go at
it alone. Called Taxation Solutions tax Relief that eight eight
(10:52):
eight nine three zero one zero one six. We are
your solution for IRS tex audits, back taxes, garnishments, leans
and levies. Whether you're an individual or business, you need
a solution and a strong aggressive tax resolution.
Speaker 2 (11:12):
Don't let the IRS walk all over you.
Speaker 3 (11:15):
Stop the IRS now call eight eight eight nine three
zero one zero one six or go to Taxationsolutions dot
net now for a free no obligation consultation. Let's get
back to tax stock for you with more tax stock
(11:36):
once again.
Speaker 2 (11:37):
Here's your host, Barry G. Fowler.
Speaker 4 (11:42):
Hey, welcome back. Before we get too far in this,
if you are an owner operator out there, truck driver
looking for bookkeeping and tax services, and we've got a
great low rate and special going on right now. Of
about it simply twenty five dollars a week or one
truck operation. We manage all your bookkeeping for you. As
(12:05):
a matter of fact, if you're not a member of
O I d A, we'll pay for your first year's
membership out there with o IDA. So call us, let
us know that you're looking for the low rate, and
let us know that you're looking to become a member
of Old Idea and we'll take care of that for
you as well when you sign up for bookkeeping with us.
(12:26):
And we're talking about equipment, now, I hear this all
the time. You know, hey, should I buy this new
piece of equipment or should I buy this used piece
of equipment? You know a lot of times it's you know,
personal choice. But one of the advantages you have of
a new truck you can spec it to your operation.
But you need to know, hey, how are you planning
(12:47):
to operate? What kind of loads you're going to be carrying,
And you can kind of get carried away out there
in the cost of it. And a new truck could
also be better, you know, in fuel mileage as well.
So you know, what you want to do is be
able to sit down and and figure out exactly what
(13:09):
you're looking to drive. Now, when we're at Truck to Success,
you know, they talk about learning about specific tools that
are out there to help you spec the truck for
your operation. You know, it's a ten speed better than
an eighteen speed? What gear ratios entire sizes should I
(13:31):
use for my operations that gives you the best duel,
miledge and power. You know that's not stuff I do
as a tax guy, but oh I DA definitely can
talk to you about this in this in the seminar
Truck to Success is a great place to do it.
You know, also, you know what kind of warranties you
should be looking for. Make sure you get everything in writing.
(13:56):
You know, when you're talking to Old Idea, they're not
bound to any manufacturers, so they're going to kind of
help you walk you through what o Idea has experience with,
you know, different engines and truck manufacturers out there. They
can also talk to you a little bit about life
cycles and new trucks, which is really kind of cool.
(14:19):
And then other costs that you may have such as
newer emissions, maintenance you're wanting to go into California or something. Man,
you've got to have a newer truck. You can't have
one of the older trucks out there because of the
emissions requirements. And then you know there are odd states
out there that have lemon laws for trucks as well,
(14:41):
so you know where you buy it could be important.
Now there's huge trucks out there too. You know what
they're going to show you is some ways to find
out how a truck has been abused, how it's been abused,
how they've been taken care of. Walk you through a
little bit of you know what you need to do
(15:01):
to check the truck out and where you're going to
find most of the red flags. Should you ask for
an oral analysis? Should you ask for the last ECM reading?
And how to read and look for potential problems with
the truck engine transmission? The things you can learn. Now, hey,
(15:22):
if you've been an owner operator, you know a lot
of this stuff. Maybe you don't know, and you've had problems.
We've had a lot of clients they bought us trucks.
Thank god, they bought the warranty and they're getting it mixed.
One of the big problems they have is equipment of financing.
You know, when you when you walk out and you're
(15:43):
going to find a piece of equipment that you want.
And this goes in any business out there, and whether
you're buying new or used, and you're going to go
through some kind of financial institution, it's going to depend
sometimes on your credit score. Some of the truck companies
will loan you the money at a very high interest rate.
(16:07):
Read your loan document. There are some loan documents we've
seen don't even disclose interest rates to you. It was
a lease least purchase, and the interest rates were actually
closer to thirty percent. But if you don't read and
don't look at the numbers out there, it can cost
you an arm andal ay and more than you can
(16:28):
actually afford. So you really need to look at what
you're getting into tru success. We've talked about, you know,
learning what lenders concentrate on, such as tradelines, both negative
and positive tradelines will be discussed, and what lenders look
(16:49):
for on credit applications or with the magic score on
the credit application. And then the pros and cons of
various financing operations options out there, such as loans or
finance lease, residual lease, lease purchase. Should you purchase a trailer,
pros and cons of various trailer types. Maybe you're gonna
(17:13):
lease on with somebody that they're going to provide to
the trailers. We have a lot of people that do that.
They buy the tractor and the trailers provided from where
they're leased on. So there's a lot of options. Need
to sit down and look at it, you know, so
when you're buying a truck, you know way all the
options you have out there, so that you know do
(17:35):
you buy the new use by how the financing.
Speaker 2 (17:40):
Is going to go.
Speaker 4 (17:41):
You've got to look at all that so that it
makes sense for you and your business. And you've got
to remember you've got to cover that payment. And if
you're leasing a truck from where you're leased on and
then all of a sudden you're towards the last year
of your lease and the loads slowed down, are you
going to continue to pay for this lease or are
(18:01):
they taking the truck back in your sol You know,
those are some of the things that we talk about
in Truck to Success Seminar, so that you know, hey,
you've got information in your hands to make good, solid decisions.
Speaker 2 (18:18):
Now.
Speaker 4 (18:19):
Trust success. You know, it's it's about you and your
business making your business a success, because that's the key.
It's the way you stay in business. See whether you'ren owner, operator,
truck driver, or small business owner. It really doesn't matter.
You have to be successful. That doesn't mean break even.
(18:40):
That means bringing in enough money to support you and
your family and pay the taxes. Ye pay the tax
got to pay the tax guy Uncle Sam needs its
cut of everything you do as well. So you've got
to plan. You've got to have the right equipment and
the right financing, and then you got to start talking
(19:01):
about insurance and the types of insurance that may be required,
and the amounts of insurance that is required that is
set by the Federal Motor Carrier Safety Association, and then
other types of insurance that you may need if you're
operating under your own authority or if you're leased to
(19:21):
a carrier. So let's say, for example, you decide to
hear an elites on. It is a carrier who's generally
responsible for carrying the public liability. However, many carriers charge
it back with the premium. You see, those carriers are
making money coming and going moreover their instances, where least
(19:42):
on our operators will not be covered under the carrier's
insurance and you're going to need to carry your own
insurance instead. And then there's some insurance that is optional
that provides extra layers of protection. And then insurance costs
are going to vary on numerous factors, and you know,
(20:03):
it could be your driving brak, be the type of
material that you're carrying, it's tasmad or not. A single
accident can cast your business basically everything you've worked for,
So you're going to need to know, you know, hey,
what is required, what's needed. You can't operate without insurance,
(20:25):
and you've got to actually have it all in place
before you can even begin to get out there and operate. So,
you know, putting that information together and those information is
valuable in developing your business plan as well, Like one
of the first things we talked about is developing that
business plan. Now we're going to take a short break.
(20:46):
When we come back, we're going to talk about your
decision to be an owner operator, whether it's your own
authority or at least on a carrier. We'll be right
back after that.
Speaker 3 (20:56):
We have only scratched the surface of play's show. Please
stand by as Barry gif Fowler will be right back with.
Speaker 2 (21:04):
Taxtock for you.
Speaker 3 (21:08):
As an owner operator, you already spend too much time
away from your family. Trucker Tax Tools handles all your
bookkeeping and taxes no matter what level trucker you are.
Life on the road can be taxing, but that doesn't
mean that your wallet or time with your family should suffer.
Trucker Tax Tools makes your life run smoothly.
Speaker 2 (21:29):
Go to Trucker tax Tools dot com.
Speaker 3 (21:31):
For a free guide that will give you the tools
to never worry about your taxes again. Call Trucker Tax
Tools eight seven seven nine six six two four seven seven,
or go to Trucker tax Tools dot com now and
let the experts keep you trucking. Let's get back to
(21:53):
tax stock for you with more tax stock once again.
Speaker 2 (21:57):
Here's your host, barrygf.
Speaker 4 (22:02):
Hey, welcome back. Hey, don't forget to call truck or
tax Tools here at eight seven seven nine nine six
two four seven seven. Hey, get that low bookkeeping rate,
get started. See you know where you are in business? Hey,
this introductory rate for new clients. Also, if you're not
a member of the oh IDA, we'll pay for that
(22:24):
first year's membership with oh IDA. See creep the benefits
of belonging to IDA. And there's some other good associations
out there that we're associated with the specials coming from
working with oh Ida and working with them on Truck
to Success seminar as well. Hey, right before the break,
(22:45):
we were talking about that big decision should I be
an owner operator under my own authority or should le
sign to a carrier? Hey, in my opinion, listening to
this seminar and being at this seminar every year, by
the way, don't forget to register for Truck to Success
now and get a little bit of discount with them.
That seminary is in Blue Springs, Missouri, or on virtually
(23:08):
on Zoom and it's October twenty first to twenty third.
I hope you're going to come out and be at
Trying to Success and meet me and be able to
sit have dinner with me in the lobby and let's
talk about trucking. But you know, when I look at it,
a lot of the people coming out and becoming an
owner operator. The best way to get started sometimes is
(23:31):
being leased onto a carrier. At least it gets your
feet wet owning and operating a business as an owner
operator and taking that first step being leased on gives
you time, get your feet wet, get yourself established, and
figure out everything you need to be from there and
you might get on a good least. Have many clients
(23:52):
who have gotten on dedicated routes and making a good
amount of money operating on a dedicated out They know
it's consistent, it's there, and they're making good money and
now at least on and they're doing very very well,
and they prefer it to be that way. They don't
want to have to go chase dollars or anything from
(24:12):
anybody out there, or use a broker that's going to
take more money from them as well. But if you're
going to be leased on, you are going to sign
a lease agreement. It is a binding document between you
and the carrier. The one thing you need to, you know,
make sure of is that you are your own person,
(24:33):
You are your own owner operator. You are still running
your own business. You're not being dictated every single thing
under the sun being leased on to the carrier, because
then maybe you might be a W two employee. So
that's something you've got to look at. Sometimes owner operators
(24:53):
are also going to lease their equipment to the carrier
and then so that you may become W two and
the equipment's leads to them. There's a lot of different
options out there. If you're under your own authority or
want to operate under your own authority, you've actually got
to apply through the Department of Transportation. It's not very complicated,
(25:16):
but it can get very confusing, and you need to
make sure that you've got the right advice. Oh Idea,
it is great giving you the advice you need to
fill this paperwork out correctly. Thousands of authority filings are
not filled out correctly and the Department of Transportation does
not qualify you. So you may have sitting there waiting
(25:37):
definitely without knowing. The Department of Transportation isn't very good
at talking to to you. But oh Idea does have
an authority department. We do not We do not help
you get an authority. We will refer you to oh
IDA or some other associations out there that will actually
help you through the process. But oh Idea has an
(25:58):
authority department that I'll actually walk you through this. And
there's potential pitfalls, potholes you may fall into that you'll
never get out of and be waiting definitely, oh Idea
and try to success. Uses a great example about you know,
let's say you want to hazmat there's a whole different
(26:20):
program out there, and hey, you may want to list
that you'll run in all forty eight states, which will
change your insurance rates. So things that you need to
really pay attention to is where you're going to run,
how many states you're going to run, how far you're
going to run. Because of all the impacts that it has,
(26:43):
getting good advice about getting your own authority is key
and also key to going back and developing that business plan,
so you know, not only does affect your insurance rates,
it affects the cost of permits that you'll need to purchase.
And you're totally responsible for all aspects of your business
(27:08):
and there's a lot more paperwork and accountability involved. And
that's all things we talk about at truck Success that
is there. You know.
Speaker 2 (27:17):
The other fun.
Speaker 4 (27:18):
Part is listening to this was the drug and Alcohol
Consortium and requirement and it's one of the most cited
violations from what I understand, because you don't belong as
a owner operator with their own authority to a drug
(27:39):
consortium and it is mandatory that you belong to consortium
and that tests are conducted in a certified lab as well.
There's a lot of owner operators that aren't familiar with
these requirements, especially when you have your own authority. Now,
my favorite part is when we talk about business structure.
(28:04):
That's my part. Now, what I really love talking about
business structure is that they have me come in and
talk about it and wanted me to get out liability stuff. Now,
I'm not an attorney, never wanted to be attorney, and
don't charge legal fees. So when I talk about liability,
I talk about what my friends tell me that our attorneys. Yes,
(28:24):
I have a couple of friends that are attorneys, so
we'll holding it against me. They are good people, but
they basically tell me that if you are the owner
operator and you're the driver of the truck and you
were in an accident, you're getting sued just as much
as your businesses, and the business isn't going to stop
somebody coming through ensuing you because you are still one
(28:47):
of the responsible parties when you're behind the wheel of
that eighteam wheeler. Now, if you have contractors or you
have employees driving for you and they do something wrong,
as long as you've kept your corporate veil in place
and haven't screwed any of that stuff out, the company
(29:08):
should stop the liability at the value or the money
that's in the company. Okay, insurances for that is. Now
what I advise you is if you're talking about business
structure for liability protection is pick up the phone and
call your attorney. Talk to them. Make sure it's structured
right and you are dotting the i's and crossing the
(29:29):
t so you protect yourself and a liability. Now, what
we really talk about is how this entity helps you
tax wise. Single member LLC taxed as a single member
is schedule. See total net income is going to be
tax for Social Security, Medicare and federal income tax and
(29:50):
state income tax. A single member LLC taxed as an escort,
you must have payroll and that payroll is the only
the amount that's taxed for Social Security and Medicare, but
it's also taxed for federal income tax date income tax.
You also receive a K one with net income from
the business, which is also taxed for federal state income
(30:14):
taxes but not taxed for Social Security and Medicare. But
being an s corp owner, if you're working in the business,
you must have reasonable salary faederal. Now, if you're incorporated
and you haven't made the s core election, you're taxed
as a corporation on eleven twenty and you get double taxation,
(30:36):
meaning corporation pays a tax and then distributions to you
are dividends and taxed at your federal income tax rate
on your personal tax return. And you must have payeral
for the people working business. But your money is taxed
at the corporate level and then taxed again when it's
distributed to you at the personal If you make the
(30:58):
s core election, then you're taxed with payroll again and
net incomes tax at federal and state income tax rates.
Multi member LLC can be taxed either as a partnership
or as a escort, but you have to make the election. Now.
We're going to talk about LLC tax as a partnership
(31:18):
right after this break.
Speaker 3 (31:20):
We have only scratched the surface of today's show. Please
stand by as Barry G. Fowler will be right back
with tax stock for you. As an owner operator, you
already spend too much time away from your family. Stop
spending time doing paperwork. Go to Trucker tax tools dot com,
(31:41):
a solution built specifically for truckers. Trucker tax tools dot
Com makes your life run smoothly. Let's get back to
tax stock for you with more tax stock once again.
Speaker 2 (31:56):
Here's your host, BARRYG. Fowler.
Speaker 4 (32:01):
Hey, welcome back. We were talking about LLC's and you
know when we talk about LLCs and inks and escorts
and partnerships, this applies to all small businesses out there.
Are all businesses out there on how you can limit
your tax liabilities as well. But if you are an
LLC and maybe your husband and wife and you both
(32:25):
own the business, we can have it taxed as a
partnership and being taxed as a partnership. Again, you can
limit what is going to get taxed for Social Security
and Medicare by what they allow for partners that are
working in the business should be getting what they call
guaranteed payments. So if you give your partner a guaranteed payment,
(32:50):
that is what is subject to self employment tax, Social
Security and Medicare. Now, guaranteed payment still has to be
a reasonable wage page the person working in the business.
So you as a truck driver getting a reasonable salary
through your guaranteed payments, you will still get tax on
your personal tax return for the guaranteed payment amount. Subjects
(33:12):
of Social Security and Medicare, and the rest of the
money that comes over to you would only be taxed
for federal income in state taxes as well as the
guarantee payments subject to betteral and state income tax as well.
If you happen to be in one of the states,
it does charge income taxes out there. So you know,
(33:33):
those are the kind of the things you need to
look at.
Speaker 2 (33:36):
Now.
Speaker 4 (33:36):
If you're set up as a SOLI providership or you're
set up as a single member LLC, we see the
biggest violation is running payroll for the owners of the
business being that you're on schedule. See, you don't do
payroll because your net income for your business is taxed
for Social Security and Medicare and self employment, so there
is no payroll run and no payroll taxes or payroll
(33:59):
time tax forms unless you've hired somebody out there. The
best thing I tell you is is call Trucker Tax
Tools or go to Trucker tax tools dot com and
register there for us to give you a free consultation
and a free call, or to just pick up the
phone and give us a call here at Trucker Tax
Tools at eight seven seven nine six six two four
(34:21):
seven seven again eight seven seven nine six six two
four seven seven, ask for our lowest rates. If you're
a single truck I want to operator out there. You
know we can start you as simply as twenty five
dollars a week for bookkeeping, and then if you're not
a member of IDA, we'll pay for that membership. Well,
(34:43):
we'd love to have you. I mean, as matter of fact,
staff just told me we got a couple of phone
calls here today already, people getting signed up to get
their book keeping started. Even if you've been working with
somebody else and looking for a lower rate, great service.
You call us here at Trucker tax Tools and go
to Trucker tax tools dot com. Hey, one of my
(35:06):
best things that I love hearing about, And man, I
am passionate about this. They start talking about brokers and factory.
What I'm passionate about is about the factoring side. We'll
get to that in a minute. Sometimes when you got
your own authority out there and carriers owner operators, sometimes
you use broker to find you loads. Make sure you're
(35:29):
doing your due diligence. Some of these brokers with seeing
our scam artists out there, make sure they're bonded and
sure any bonds and the trust. So you know, you've
got to make sure that you have a lot of
these things that are out there and don't get burned
by those those brokers out there. And you know, look
(35:50):
at loadboards and other things because you're going to be
responsible for your own loads and making sure you know,
getting loads so you're not at heading anywhere. Factoring. I
see this all the time. You see people get into
business and you know the first thing they've got to
do is start factoring. Factoring is something that helps you
(36:12):
with the media cash flow, but as a dead end
in my opinion, if your need immediate cash, yeah, sometimes
you've got to use it, but it's hard to win
yourself off of it. And it doesn't seem bad when
it's three percent for or two percent up front on
(36:33):
the invoices, but if you extrapo lay that out to
an annual interest rate, it's quite expensive. You know, if
you're getting hard and charge every single invoice three percent
off of it, when your net income from your business
is running at you know, twelve percent before you pay
that three you know, now you're now you're down to
(36:56):
only a nine percent. Sometimes it's hard to run business
when you cash flow is affected. So we always tell you, hey,
go back to that business plan when you establish it
and you're deciding how much cash you need to have
on hand, give yourself that time in the window to
make sure that if you're invoicing that your collections everything
(37:18):
will be able to keep up cash flows that are
out there. So having that sixty ninety day cash in
the bank or cash readily available you know, whether through
the line of credit or maybe through your own personal
savings out there could really be key and key for
your business. Now we talk about trucking and we talk
(37:44):
about the keys to success. Keys to success is knowing
your costs. Now, we don't just talk about knowing the
costs of hey, your truck payment or your insurance payment,
but all your deductions, your fixed costs and variable cost
what you've got to cover out there through the goods
that you're transporting on a weekly basis, and how you're
(38:09):
going to make ends meet. But one of the best
things is learning how to figure your cost per mile. Now,
not just cost per mile on total costs, but cost
per mile and fixed costs. What is it costing you
to drive that truck per mile on a fixed basis.
(38:31):
You know, your first your fixed costs, your insurance, your
especially if you're paying for insurance yourself, not through your
least your cost is your truck, cost of your trailer.
You know the payments on that, things that don't vary,
Your administrative costs that you're going to be said with
that you're going to have to pay every month. Then
(38:54):
look at all your variable costs. You know, from fuel costs,
repairs and met all these things build in to the
bottom line of your business. And it is good knowledge.
And know what is the cost per mile to drive
your truck? Hey, hey, you learn this is my cost
per mile, but this is only going to pay a
dollar per dollar or what my cost per mile is.
(39:16):
So if it's costed you're forty one cents a mile
and you're going to only collect forty one cents. Well,
that didn't leave you any money. You didn't make anything.
You just drove the truck for somebody else's good. So
you need to know, hey, this is the load, and
this is what I'm going to make per mile on
this load, and how does this make sense determining my profitability?
(39:37):
Or maybe you're going to take a load that Hey,
your cost per mile is thirty five cents, but that
load is only going to pay you thirty cents. Why
do you want to take a load to lose money, Well,
you don't. Loads need to make sense, and the only
way you can make sense of how good a load
is is to know your bottom line costs per mile
cash in, cash out? What does it cost? It mean better? Yet,
(40:00):
I extend this thing out one further. I don't want
to just know what my cost per mile is for
my income, my expenses out there. I want to know
what my cost per mile is including the profit for
me as the owner operator, so that I know that
I am going to make a certain amount of money. Now,
(40:21):
if I'm more efficient at driving this, or I'm able
to save some other costs, it's going to put more
money in my pocket and I'm better. So if I
determine that my cost per mile needs to be fifty
cents and I'm going to have a load out there
that's sixty cents, I'm now ten cents per mile to
the good. So if that fifty cents includes paying myself,
(40:42):
now I can take a load at fifty cents a
mile and know that I can pay myself. If I
got a load for fifty one to fifty two, Now
I'm even better now if I'm able to reduce some
of my fig my variable costs. Maybe I say money
on fuel because fuel prices are down or something, or
I'm more efficient and driving my truck and got my
fuel mileage, or I was able to save some costs
(41:05):
somewhere else in my budget and my plan. Now I've
made more money because I saved money. It's more money
in my pocket versus money in somebody else's pocket. So
cost per mile can be very key. Oh Ida. Actually,
if you go to Trucker tax tols and put it
into the message there, go to Trucker tax tools dot
(41:26):
com and you put into the message I want the
cost per mile worksheet. We'll get the cost pro miile
worksheet out to you absolutely free. So go to truck
or tax tools dot com, go to the contact page,
but please send cost per mile worksheet or just put
cost per miile worksheet. We will get that out to you.
So that you have a tool, whether you're using us
(41:49):
or somebody else, you will have the tool to help
you calculate the cost per mile on your truck. So
don't delay. Go to Trucker Tax Tools, ask for the
cost permile worksheet, put that in on the contact page
and we'll get that out to you as soon as possible. Hey,
this is a great show. I love talking trucking. I
(42:10):
love talking with y'all. We actually had a lot of
questions we're having to answer off air because they are
actually particular questions that are coming in for their operations.
So if you have some questions, go to truck ortax
Rules dot com. Go to the contact page and shoot
some message over there. What I tell you is is
(42:30):
I can share. Go over to Tax Talk for You
like our page on Facebook, or like our page at
tax talkfor You dot com. Never miss an episode. We're
always talking something about trucking. We're going to talk a
little bit about farm and ranch taxes as well out
there in the future. So if you know somebody running
farm and ranch, referm over there. We're here every Monday
(42:51):
at ten am Eastern Time on W four c Y
Radio or Tax Talk for You t TV. But go
to tax Talk for You dot if you like the
page over there. We'll keep you up to date of
everything that we're doing and the next show. But don't
miss us be here every Monday, ten am Eastern time. Hey,
(43:12):
if you do having to missus, catch one of our
podcasts again at tax talkfor dot com. Let us talk
about your taxes, or maybe we'll talk about your tax
problem and let us help you keep your truck on
the road, say more efficient, finding ways to save money
on taxes. And if you're a trucker, next month's Landline
(43:35):
magazine is going to be talking about fifteen different tax
deductions you have as an owner operator. Make sure you
see the magazine. Make sure you see our article talking
taxes and trucking, Taxes and trucking at tax talkfor you
dot Com. And we'll see you next week right here
ten am Eastern time on W four CY Radio. Thank
(43:56):
you very much for everything you do. Have a god
blust week. We'll see you next week right here at
tax TALKFORU dot com.
Speaker 3 (44:05):
Are you an individual or business that wants to understand
taxes and how they affect you. Are you looking for
specific tax advice for self employed business owners and truckers.
Are you behind on taxes and your bookkeeping? Are you
dealing with the irs and ready to have some relief,
(44:26):
then you need Tax Talk for you hosted by tax
and trucker expert Barry g.
Speaker 2 (44:32):
Fouer EA.
Speaker 3 (44:33):
Tune in ten am Eastern Time every Monday right here
on W four CY Radio and Talk for TV. Don't
forget to check this and past episodes at tax TALKFORU
dot com. See you next week at W fourcy dot
com
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