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Assuming that this is a single member LLC (or SMLLC as the IRS refers to it) you simply file the LLC's revenue and expenses on your personal Form 1040 with Schedule C. It is one of the biggest reasons why many people choose a sole proprietor LLC instead of an S-corp... simplicity of paperwork and tax filings is a wonderful thing.
And that's exactly how a sole proprietor's taxes are filed, so we can agree that there is no simplification there. Yes, it is simpler than an s-corp but that begs the question, why would this person be filing as an s-corp in the first place? There is no liability protection offered to the one-truck operator and if his/her income was less than $60,000 there would be no tax advantage. If income exceeded that amount, than he would be leaving money on the table by NOT filing as an s-corp. So really, the only scenario where it might make some sense is what you describe; possible future growth. Even then, the only benefit you're trying to capture is establishing credit history and in reality, that's not really an issue if handled properly. Simply converting your business when the time comes can be just as effective, so long as proper care is taken along the way.
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If it is a multi-member LLC, then you’d need to file Form 1065 (U.S. Return of Partnership Income) and Schedule K-1 (Partner's Share of Income, Credits, Deductions, etc. (For Partner's Use Only).
Not entirely true. A multi-member LLC can also choose to be taxed as either a corporation or an s-corp. The LLC is a state construct; it is not recognized by the IRS as a tax entity. Therefore, it must fit into one of the entities that the IRS does recognize. The beauty of the LLC is that the IRS allows any of the entities to be chosen, providing that certain conditions are met. Partnership taxation is generally one of the least advantageous of those available. It does make sense at lower income thresholds where the partners are in the same household.
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I’ve never heard of leasing yourself and your truck to your own LLC being a red flag to the IRS. I would think it is pretty common practice actually.
It is a red flag because it's easily manipulated. It's common practice among unscrupulous filers to manipulate the lease payments in such an arrangement based on the individual's and business' respective tax situation. Of course, being a red flag does not mean that everyone gets audited. When looking at total audit numbers, there will still be many more who don't get audited than do. The home office deduction is one of the biggest red flags for the self-employed. Yet most are never audited. It does however increase your risk so that has to be weighed against the benefit. I just don't see avoiding retitling as a benefit so it fails the risk/reward analysis.