Hi my name is Andrew

I’m new to the forum but have been reading it for sometime. Thank you all for your post there very helpful. I have been researching trucking as a future career. I just failed my Class A test today so I’m kind of bummed but I can take it again soon and will have a much better chance of getting it now I know what is expected.
I have been working on a business plan for the day when I will buy my truck. Having read many post. I have a good idea where I’m going, but had some questions of my own.

My plan calls for me to work for a company -one year- think I’m favoring Creat at the moment (I know it is not enough to enjoy good insurance rates because the insurance company??s that I called are looking for 2 or more years experience) If I lease on with the company that hired me for another year I think I will be in good shape.
My plane calls for me to save 20,000 for down payment and get my credit squared away. I have no debt now so with luck much of my pay will be direct deposited to my bank account. I have no wife no kids and I’m 33.

1. Is it better to incorporate or to go LLC? How do you file and why?
2. Do you use a payroll service or a book program like Quick Books or Quicken?
3. How do I find a good accountant who knows the trucking industry how important is it to have a lawyer (can you give me an example where a lawyer is going to be necessary?
4. Are there trade groups I should join and some of there advantages?
5. What kind of help is available? Groups like the SBDC- SCORE did anyone help you?
6. Type of freight you prefer to haul and why.
7. What are trade lanes and what is a good lane to be in?
8. How are you paid? Hub to hub mileage or hhg shortest route what works best and should I avoid the company that pays HHG miles?
9. Should I lease or buy a used first truck. +- there?

Thank you for helping me in advanced

 

You're asking how to own a franchise, when you don't know the rules of baseball or how to play :wink:

Whats you current occupation? Being debt free is good. Having capital to start with is better?

Where are you located?

 

Andrew, you have been doing a lot of thinking. I would say the first thing to do is pass the CDL test and get your license. If you can save $20,000 why not use that money to pay cash for a truck? It is much better when you don't have to worry about making truck payments.

1. I prefer a corporate structure, but that is just me. There are some tax
advantages in having things set up under a corporate structure, but
every situation is different. You may just as well having a
proprietorship. With one truck, it is something you may want to run by
a CPA or attorney. Either can better advise you about that and your
needs.

2. I am not sure why you would need to use a payroll service. Most
companies don't use them unless they have a lot of employees. You
could use Quick Books or Quicken. There are software packages
specifically designed for the professional owner operator. One is
trucknpro by foglinesoftware. It doesn most anything you want but
payroll and fuel taxes. If you lease to a carrier that won't be a
problem. Easy Trucking also has a package and it does the fuel taxes
at twice the price of the trucknpro. If you want a trucking package that
has payroll then Truckers Helper is a fairly decent program. Or you
could just use a spreadsheet.

3. The best way to find an accountant with trucking experience is to ask
make some telephone calls. OOIDA had at least one listed on their
website and may have some listed with Landline Magazine. You can
also check in some of the trucking magazines and the Truckpaper.
Some advertise in them. I prefer dealing with someone locally. It is
usually good to have a lawyer you can trust when you need one. You
will have a contract if you lease to a carrier. You don't need to have a
lawyer to set up your corporation, but you might want to run the
structure up with one.

4. OOIDA is about the closest thing we have to a trade association.
Membership is open to all professional drivers, owner operators and
independents.

5. OOIDA is a good resourse for most anything you need as a driver or
owner operator. There is usually someone who can answer your
questions. www.ooida.com.

6. I prefer flatbed freight. I like to be outdoors, get a little exercise and
the money is usually better than pulling a van. However, never do ANY
job strictly for the money. There is more to living than working at a
job that you dislike.

7. I believe you are talking about freight lanes, not trade lanes. It
depends on the time of year and type of freight hauled. For the most
part anything East of I-35, West of I-95, North of I-10 and South of
I-80 is considered the best area for freight.

8. Hub or practical miles are closer to actual miles. I am a little different
in how I run, since I run my authority. If I were leased to a carrier I
would look for one that has good rates and pays percentage.

 

I would like to know why an owner operator with a one truck operation would want to incorporate, you say it is a good idea. What are the reasons to do this besides look at me I own a trucking company, Billy Big Rig Inc. I have talked to several accountants that know trucking in different parts of the US and a handful that specialize in trucking and they all have said you are throwing your money away when you are a one truck operation and you Incorporate. I would like to know some facts on why this is a good thing to do.

 

It cost me $100 to incorporate by doing it myself. If you are a corporation and do the Sub Chapter S election with the IRS, you can pay yourself dividends instead of a salary, you can avoid having to pay Social Security Tax on your earnings. You could take that same money and put it into a good investment fund or retirement fund and have a much better return on your money. You can also set up a 401k and save additional taxes. There are other tax benefits available if you have a corporation. Having a corporation can keep things much cleaner as far as keeping business and personal expenses separate. It does offer some liability protection, but if someone wants to sue you there is nothing to stop them. It isn't necessarily for everyone.

 

Thank you for your responses. G-man you help a lot of people and I want to thank you for all the insight, ever think about writing a book? I could see you gathering up all your posts and a bit more as to your specifics and running a serial. Not saying you should but if you did I’d buy in, if not then your post will likely suffice your not going to stop posting are you?

Today I’m going to be talking with a owner/operator who use to haul from this area.(Boothbay, Maine) He has done very well had 20+ trucks and is now retired. With a year of research, saving to buy my own truck working hard to save and do a good job I hope to make a go of it. I’m thinking it can be done=) Look forward to reading and learning and getting my CDL=) thanks

 

I appreciate it, Andrewwheeler. I have been thinking about the book. I have done an outline and put some things on paper. I don't know if I will complete it or not. It takes a lot of time. And I still have to work for a living. I have no plans to stop posting. It sounds like you have a good resource with this former fleet owner. Learning is usually best when you can do so from someone who has been there and done that.