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The pros and cons of Corporations and Partnerships (LLC)

The pros and cons of Corporations and Partnerships (LLC)

I want to thank my usual readers and those who occasionally read this column that we offer monthly through El Trailero Magazine. Also, we would like to congratulate all our trucker friends who met punctually with the filing of their 2018 tax return. We hope that they have put all their efforts into having properly reported their report. However, there still are groups having difficulty filing it correctly and it is those who have converted their transportation business into a Corporation or Partnership (LLC).

Attorneys, Certified Public Accountants and Agents enrolled with the Internal Revenue Service recommend that the best way to run a business is as a corporation or as a Limited Liability Company. The may receive several benefits if you received the appropriate guidance to do so and if the registration process with the government agencies was done correctly. You must take into account that there are different classifications of corporations and depending on which one you choose; you may be able to obtain the benefits that you pursue.

During this tax season, we received multiple clients at Jagg Tax Solution, Inc. who converted their business into a corporation or LLC, which I thought was great, since they could benefit from the tax treatment with the Internal Revenue Service. Among these clients, some were confident of their classification, while others had no idea about their classification.

The utmost situation was that those who were convinced that they had S Corporations and indicated that their corporations were registered electronically with the IRS as S Corporation. However, the IRS rejected them. This result tells us that evidently their corporation were not a Small Business Corporation. Everything indicates that the people who helped them create their corporation lied to them.

The previous story is a real situation and is the result of hiring incompetent and inexperienced people about the transportation industry and the needs of the trucker. I would like to invite each of you to consider and to say "enough" to this type of abuse to those businesses that take advantage of the goodwill of the truck driver in every opportunity they have.

Jagg tax solution, Inc. is managed by a former truck driver, Gustavo Nunez, an Agent Enrolled with the federal government and dedicated to provide a quality and professional service to all truckers. In addition, we have a group of professional employees and graduates from the best universities in the country.

Taxes at the Wheel


Edic.: 142
Autor: Gustavo Nuñez
Date: 5/2019