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tabbymomma
Level 1

I use QB for a owner/operator LLC trucking company. I am the only employee. I pay myself weekly. Should I set myself up as an employee?

 
Solved
Best answer October 15, 2018

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john-pero
Community Champion

I use QB for a owner/operator LLC trucking company. I am the only employee. I pay myself weekly. Should I set myself up as an employee?

As sole owner of an LLC (or even a member of a multi-member LLC) you are prohibited from treating yourself as an employee UNLESS you elect to be treated as a corporation for tax purposes. What you "pay" yourself weekly is owner draw against end of year profit or loss.

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11 Comments 11
thepitchfordswor
Level 1

I use QB for a owner/operator LLC trucking company. I am the only employee. I pay myself weekly. Should I set myself up as an employee?

update please. my husband just started the same business. advice needed
john-pero
Community Champion

I use QB for a owner/operator LLC trucking company. I am the only employee. I pay myself weekly. Should I set myself up as an employee?

There is no change in answers. A member of an LLC , unless the LLC elects to be taxed as a corporation is NEVER on payroll for the LLC (or sole proprietorship, either) It is ALL your money. What you take out is equity draw, what you put in is equity contribution.

The profit OR loss passes through to PERSONAL income as the LLC does not pay income tax.
john-pero
Community Champion

I use QB for a owner/operator LLC trucking company. I am the only employee. I pay myself weekly. Should I set myself up as an employee?

As sole owner of an LLC (or even a member of a multi-member LLC) you are prohibited from treating yourself as an employee UNLESS you elect to be treated as a corporation for tax purposes. What you "pay" yourself weekly is owner draw against end of year profit or loss.

View solution in original post

qbteachmt
Level 15

I use QB for a owner/operator LLC trucking company. I am the only employee. I pay myself weekly. Should I set myself up as an employee?

"my husband just started the same business"

If this LLC is a Single-member Disregarded entity as a Sole Proprietorship, the Spouse can be paid through payroll; but you really need to work with your own CPA, as that might not be the Best option out of others, such as Joint Venture or Multi-Member LLC.

Get good, personal, professional guidance on this. This is Not a QB question. You are asking about Legal entity options.


qbteachmt
Level 15

I use QB for a owner/operator LLC trucking company. I am the only employee. I pay myself weekly. Should I set myself up as an employee?

Do you pay yourself weekly through payroll as an employee, or take a draw? For a draw from Equity, that would be a vendor name, not an employee name. Employee = payroll.

Mwikali
Level 1

I use QB for a owner/operator LLC trucking company. I am the only employee. I pay myself weekly. Should I set myself up as an employee?

Im a Dispatcher with several leased drivers who i pay a certain 15% of jobs done as their pay. I have set them up as Vendors. The problem is, I have to send them a statement every week less the 15 % that I charge them for every job done.Im not able to do this on quickbooks.Any idea how?

 

Then, how do i incorporate Factoring into Quickbooks?The same invoices  that I pay the leased drivers are the same invoices i forward to a factor.

Alessandra_B
QuickBooks Team

I use QB for a owner/operator LLC trucking company. I am the only employee. I pay myself weekly. Should I set myself up as an employee?

Thank you for joining the thread, @Mwikali

 

Let me help you create your invoices and statements.

 

The first thing you need to do is create a bill for the 15% intended for the vendor, and mark it as a billable expense. To do so, you have to turn the feature on. Also, note that this feature is available for QuickBooks Online Plus. If you're not using this version yet, please upgrade your subscription first.


Here's how:

  1. On the Gear icon, click on Accounts and Settings.
  2. Choose Expenses.
  3. Click on Bills and Expenses, and tick the box for Mark expenses and items billable.
  4. Click on Save.

Here's a screenshot of how you can mark it as billable.

 

 

Once done, create an invoice for the remaining 85% which will be given to your customer. You'll then be given an option to add the billable expense to the invoice. This way, your customer will pay you a total of 100% for every job done. Then, you may create a statement for your vendor.

 

The other option you may consider is editing the billable amount from 15% to 100% once added to an invoice.

 

However, I recommend seeking help from your accountant. This way, they can give you further advice.

 

If you have other concerns, please leave a comment below.

LGSOLO
Level 1

I use QB for a owner/operator LLC trucking company. I am the only employee. I pay myself weekly. Should I set myself up as an employee?

As far as Owner Equity/Owner Contribution/Owner Draw is concerned.  How do I differenciate from "Gross Trucking Income" and "Owner Equity/Contribution"?  Isnt that one in the same if I am a Sole proprieter?

reyesbros
Level 1

I use QB for a owner/operator LLC trucking company. I am the only employee. I pay myself weekly. Should I set myself up as an employee?

I would like to know the answer to this as well. I keep the books for my father-in-law's trucking company. He is sole proprietor of the business, but he also operates a truck. How do I classify his income from the truck? He chooses not do an owners draw since he operates a truck. All of our other drivers are classified as contractors and are paid as such.

btks
Level 4

I use QB for a owner/operator LLC trucking company. I am the only employee. I pay myself weekly. Should I set myself up as an employee?

He can be paid based on what he hauled the same as the other drivers. But any pay will still be shown as owners draw as long as he operates as a sole proprietor.

cbag
Level 1

I use QB for a owner/operator LLC trucking company. I am the only employee. I pay myself weekly. Should I set myself up as an employee?

If I got this, (and I'm not saying I do),...Invoices don't need signatures, unless payment is not rendered and/or received by the tax filing deadlines, (from an annual filing point of view, that's where the loss comes in), but when it comes to taxes, invoices allow 1099s to be handled differently, and allow one to do a W4 and receive a W2, otherwise you are a 1099 filer. 

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