Hot shot trucking info

Discussion in 'Expediter and Hot Shot Trucking Forum' started by elow54, Sep 30, 2014.

  1. elow54

    elow54 Bobtail Member

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    Sep 30, 2014
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    First of all thanks for taking the time to read this and helping with any information. Well I bought a 2014 Dodge 3500 dualy 6.7 Cummings diesel. I am about to get the 5th wheel and airbags set up this week and just bought a 4 car hauler. I am about to put a driver for over the road. Anyone suggest a insurance company or a brokerage firm I can go through to find loads for my driver? Any advice or suggestions would be much appreciated.
     
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  3. Tanhands

    Tanhands Light Load Member

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    Aug 1, 2014
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    I leased to a company in AZ. They provide all of the Ins and keep me running as much as I want. They do not do car haulers though. I made sure I could earn a living and what my fixed expenses like Ins and Registration would be Before I bought equipment but that is just me. I guess you will be more motivated now that you have spent the money than I was, I guess.

    How or what are you planning to pay the driver and what sort of return are you hoping for? Are you going to give him percentage of gross or net or just pay him by the mile? Are you covering his hotels or is he out of pocket for that? Are you doing withholding or are you calling him a contractor and giving him a 1099? Do you have workers Comp or Occupational Accident coverage?

    The above questions are things to think about with a driver. I have been thinking of putting a driver on but have not answered these questions for myself yet so I am holding off. Now I am curious as to what your answers are to see if they can help me.


    Thanks and good luck.
     
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  4. redcentury07

    redcentury07 Light Load Member

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    Hey Tanhands, Which Company are you Leased on to out of AZ? and how is the pay like?
     
  5. elow54

    elow54 Bobtail Member

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    Sep 30, 2014
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    Tanhands first of all thank you for taking your time to writing, very much appreciated. I think I was motivated the min I signed for the car lol. I never throw my eggs in one basket, I understand that there will be expenses that will be needed before I start and Ive already setup a 12 month budget plan for it. I am sure ill make a mistake but I know there is money in this industry I just have to take the time and listen, understand that there will be mistakes and to be patient.

    Now as for paying it would be through Gross (23%-30%) depending on experience. I will cover for hotel expense if needed depending on the travel. As for withholdings or contractor, that would be up to the driver I already set up a LLC and can do it either way.

    As for insurance I would go full work comps and or occupational accident coverage.

    I understand that I wont be on point on somethings but that's why I am on here, some people may have there own opinions and i respect that. I like hearing from other peoples point of view and you never know we might work together someday and thats how it should be. I'm a very honest and fair guy so I want to do this the right way. When all this works out I will be looking to pick up another dualy or semi.
     
  6. Tanhands

    Tanhands Light Load Member

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    Aug 1, 2014
    Gilbert, AZ
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    Cool, the first part of making it is knowing what you want. You sound like you are there but from what you are saying do not really know what is needed. I am not bashing because I want to see everyone who takes a risk like this make it. I do not feel you would be taking revenue out of my pocket. So here are some problems I see from what you have written so far.

    You can choose Workers Comp through your state or you can buy an Occupational Health policy through a insurance company, not both. In most states an Owner will not be able to collect on an Workers Comp policy that is why you would get an Occupational Health policy for yourself. For an Employee you would need to see what your states law requires. If he is a contractor it may be different so still need to check on state law.

    For his rooms I would suggest giving a weekly allowance for rooms. Otherwise you may find the driver stays at the Best Western way too often. Sometimes only expensive rooms are avail but I am a room snob and avg about $40 a night with discounts from AAA, CDL, Mil or one of the discount web pages. If it were me I would give $40 a night for every Overnight he was out. If he sleeps in the truck you have to decide if you are going to give him the cash or not. If not you will end up spending it anyways because the driver will Stop sleeping in the truck if there isn't a benefit for him. Maybe split it with him if he doesn't get a room? Just noodling there. You don't want the driver tired the next day.

    The LLC has nothing to do with how you pay the driver. Either way you would want to put the owners half of his SSN deduction away (savings not sent to IRS) in case he decides at some point that he was an employee. As the owner you are responsible for half of what is collected for an employees Social Security. If it's not needed than it is a nice savings at the end of the year. If you pay him as an employee he would make less because you are paying part of his taxes, as an Contractor he gets more because you are not paying it. So at the end You really end up with the same either way. It is Safer to call him an employee and collect withholding. As long as you do this right the IRS will never bother you. Calling a driver a Contractor who has to Answer to you or ask you permission to take time off can get tricky after an accident or during an IRS Audit. Just saying.
     
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  7. Ridgeline

    Ridgeline Road Train Member

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    I don't get why people have employees or contractors and get an LLC, do a straight corp with an accountant that can put it together right. AN LLC limits your liability but not as much as you need, you need to do more to put a fence up between your company and your assets. The corp will help you deal with the employee stuff better than an LLC too.

    Remember that a good accountant, not a tax preparer, can set things up to lower your tax liability a lot more than having an LLC.
     
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  8. Lite bug

    Lite bug Road Train Member

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    Elow54 these guys are telling the right stuff. I would add take it slow, it is one thing to start out with truck and trailer, a whole different story to start out with hiring people, liability, who is going to take care of your equipment, things not going well they might bail on you. I wish you luck, keep reading and asking questions.
     
  9. Nedrudt

    Nedrudt Light Load Member

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    Subscribed. Thanks for bringing this info up tanheads. Someone needs to write a hotshot business for dummies. I know a lot of us need this info.
     
  10. JTNTLLC

    JTNTLLC Bobtail Member

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    To answer your original questions, centraldispatch.com will be your best bet for booking auto transport loads. There are a few competitors and private brokers spread widely across the nation and internet, but Central, by far is the "industry standard".

    As for the rest of the questions you may have, autoexpeditor.com has ALOT of information specifically designed to help new auto transporters. It's a small tight bit community of us auto transporters who share all knowledge, and answer any questions. Give it a read! And thoroughly, and I bet you won't have many questions when done.
     
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  11. elow54

    elow54 Bobtail Member

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    Sep 30, 2014
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    Guys thank you so much I really do appreciate the time you took to write me. I understand that its not going to be easy, but I know I can succeed. Asking questions and taking the right steps will get me where I want to go. Most of you guys are veterans in logistics industry and I am sure you all have seen the ups and downs in this industry, and I am very appreciated for giving me all this advice. Again thank you and be safe.
     
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