New Owner Operator Few Questions

@Ridgeline & @Dave_in_AZ
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Guy in Tennessee did the exact business model you describe. He was the envy of the neighborhood. Couple of maintenance expenses and a fender bender and he lost it all, including his home because he had business and personal finances intermingled.

 

2020 was basically a record year. You may want to temper your expectations a tad.

 

Insurance will be the back breaker. Here’s a recent thread that was quoted $2700 a month.
Own Authority!

 

How many years experience did he have and how many will you have when he adds you?

 

I think running under your Fathers MC# would be best. Less paperwork, and if for some reason, he has to close it down, you can get an MC# and hire him. Keep the financials separate as possible. For the same reasons. A simple contract, outlining insurance, plates, fuel taxes, etc. It can all be ran through his MC#, and charged back to you. The only things you would need is a EIN# in the form of an LLC or S corp. or Sole Proprietor. Also, Collision, Fire, theft coverage on financed equipment, paid HUT2290, and bobtail,( Non Trucking liability ) insurance. Everything else would be through him, and charged back (paid) by you. Paying you on a 1099, and charging you back for everything. You write off all you’re costs. You two can use this as a template, to be tweaked for future O/Os. He should make at least 10-15% off your Truck. After all he has a lot of Liability riding on you. Also has to pay the Office Lady, your wife. If She can handle the deadlines for all the Regulations, to help stay Legal, And book loads, all the better. Depends on how involved she is willing to be. Her role could become very stressful. You’ll need to be careful not to take what she does for granted, and be very supportive. Nothing causes more problems than an unhappy wife, who feels unappreciated. Hopefully you can all pull your strengths together and be successful. Good Luck.

 

Your father in law has been insanely lucky.
Probably went in with some small business experience ?
Probably has an IQ of 120 or better...are you also in this range?
Is your family Mormon? Has he received great advice and or connections and a leg up from fellow church members?
Where is his freight coming from? Maybe he has business connections that are helping there?

You see me making a lot of big assumptions here right?
That is because there is something pretty abnormal about your story. Something is missing.
While it is perfectly possible for a person go straight from trucking school to o/o, success is very unlikely . Not impossible mind you, but unlikely.
You need to figure out exactly what your father in laws superpower is and honestly ask yourself if you also possess it.

Anyone here with any sense will tell you to work for someone else for two years before you buy a truck.
The rules of life however are different for everyone
Good luck