Fair Agreement for Contracted Driver question

Hello,

With a couple successful businesses in various arenas under my belt I recently decided to take the plunge into the trucking world. I grew up in a transportation family which once owned a moderate sized company of 50-100 trucks depending on the era...that company was bought out long ago, but I've always wanted to rekindle the flame and start my own. Living in a place of rapidly growing expansion and hundreds of warehouses, it seems like an opportune time.

So, I've got the bank loan financed at a good rate, a truck picked out, a carrier to work with (primarily intermodal), insurance, a bank account for the new enterprise, etc. I have a driver lined up who I know well and will be driving myself when I can pull away. The goal is to start small with minimal risk and, once the feet are wet, begin building a small fleet.

I am making the down payment on the truck and the initial insurance. We have got some good financial reserves and several sources of revenue to act as shock absorbers for the time being. I have realistic expectations for the start and first few years.

I would like to get the right balance of loyalty from my driver and solvency for the company.
He has got his ideas for pay, which sounded reasonable, but I am wondering if you all could give me some pointers on a typical driver contract if there is such a thing for a small company. He would like a percent of gross or net rather than miles, hours, etc. What are some fair deals you've seen? He'll be a 1099 driver at his request though that could change.

Is splitting all or some of the expenses a good idea? What percent of gross or net should go to driver versus owner of the equipment?

 

I would. However it is his request to be a contractor/profit sharing partner rather than a w-2 employee.

 

A lot of the info on wages etc are understood esp. moving forward with new hires. This is a special case. The driver is a friend of mine and we are discussing this more as a partnership than a typical employer/employee relationship. I am providing the initial financial backing and general business experience and he is providing the hands on skills and contacts/knowledge of the industry.

25% is the number I was looking for--thanks. We have a carrier we will be contracting with that will be providing the loads.

I am all ears about the legality of 1099's.

 

Thanks--that is good info and in the ballpark of what I discussed with him.

 

Thanks. I already formed the LLC and my wife and I are the owners. I should have been more specific. By partnership I meant we are allying toward the cause rather than in a legal sense. It is not an equal partnership in the sense that I am in control but I can still use his expertise and want to treat him fairly.

My purpose in coming here was to gather data for info I can put into his contract.