Brand new O/O needs some advice.

Crude Truckin' · May 20, 2024

blairandgretchen said: ↑

Well - read the whole thread, you might have a better opinion than the standard response. You're better than that.
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Ok ok I will

Judge · May 20, 2024

Crude Truckin' said: ↑

Ok ok I will
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Dont skip anything, may be a pop quiz coming up.

Siinman · May 20, 2024

533watts said: ↑

Hi Y'all

So here's my story in a nutshell. Only been a trucker for going on three years now, got debt free, saved up almost 60k and ready to move forward with becoming an owner operator.

The company I work for primarily works with Cascadia's and I've been impressed enough to purchase one of my own, details of which I'll go in later and definitely could use some help on those details specifically. I primarily am a glass hauler, I use a regular flatbed trailer that could be used for general commodities to get me back to the glass plants then when back at the glass plant a bunch of equipment (stored underneath the trailer) gets bolted to the bed and I can run panels at most 96x130 inches. Glass pays quite well and even in this economy glass is paying over three dollars a mile sometimes approaching four. Just a lot of hard work but it's worth it in my books.

So for my situation even in this lull in the fright market and rates in general I should be able to be successful and will be in a position to take advantage of the market when it recovers which I 100% believe it will.

Alright so here is where my questions begin.

1) I'm choosing to go S-Corp as tax declaration, more complicated I will hire an accountant because I don't want to over work myself. It seems the benefits of an S-Corp as apposed sole proprietor seems quite good and outweigh the downsides. I'll pay myself a very low salary everything else including loans and purchases for the truck stay within the corp. Perfect too for expansion if that road is taken. If anyone has concerns over this decision feel free to voice them and I'll take it seriously.

2) The new truck. Cascadia. I've more or less set my mind on going new. Heard a few horror stories of drivers getting used trucks and it was just a really poor decision. Plus new truck, new warranties, and I'll get a deal by purchasing from the same dealership my company purchases from. Also planning on ordering it as it gives me more time to save most importantly and will be setup the way I choose before it even arrives at the dealership.

So my current company truck is spec'd as a 116 BBC 72 RR cab with a DD13 and DT 12 transmission. It has a single tool box mounted underneath the cab on the passenger side with a 150 gallon tank on the drivers side. All super single tires (I personally think they are okay) with a non sliding fifth wheel. All bare bones exterior no aerodynamic skirts of any kind. I mention all this because I want to add some changes but hoping to not do more than 1.5k of additional weight.

First of all most importantly I want to put on an APU. Leaning towards Green APU but TriPak came in close second. Next I would like to have the DD15 engine on the 126 BBC 72 RR cab. Amount of fuel being the same a single 150 gallon tank and where the tool box was is where the apu would be mounted and I'll put a good aluminum headache rack behind the sleeper. When all this is said and done I'm hoping to again add no more than 1.5k maybe at most 2k lbs of weight. It's important because we always run near gross with the company trucks. I'm hoping there exists some ordering options to reduce weight like lighter components or thinner/lighter pannels for example.

3) Well this is going to be determined. I'm still stumbling in the dark a little here so I'm sure I could use more advice but for now those two up above is the most pressing. Taxes and equipment. But I'm sure I'll add to this post as time goes on.

Addendum. I'd consider Volvo heard good things about them but my company doesn't use them. from what I can tell the VNL 860 is a heavier tractor, is more expensive to purchae and have a hgher MTTR (mean time to repair) because of parts availability and repair locations. Thoughts? Because I could be wrong on all of that the internet is not a reliable place.

Thanks everyone in advance.
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If worried about weight on the Volvo get the new VNL 660 or get an older 760. These are the lighter and smaller cab area with less weight than the 860.

Siinman · May 20, 2024

Banker said: ↑

I have been trucking 36 1/2 years roughly 10 of those years as an owner op. There is never going to be a one size fits all answer to your question. I do know if you would have asked the same question in every one of the last 36 years someone would have told you to wait that it is currently a bad time. It is a terrible time in the spot market for general freight currently, but it is a great time in some specialized contract freight markets. It sounds like you may have a specialized niche and if the carrier has long term contracts it could be a good opportunity since you are already in that market. Just because some are failing currently doesn’t mean you will. Also just because some are succeeding currently doesn’t mean you will. Intelligent hard working driven people will always succeed no matter what the economic conditions are. Good luck if you decide to do it. You won’t see me selling my rig until I am done trucking as being an owner operator is the best overall place in my years of trucking. It may suck for others but it doesn’t for me.
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This right here is how I would approach the bad times. They always say it is a bad time to get in since truck prices are high or low depending on Demand. One way or the other they cancel each other out and all times are a bad time if not prepared. If prepared then it is all Air and Opportunity for those who can take advantage of the situation at hand.

MAMservices · May 20, 2024

Well kinda tongue in cheek, however with the volatile environment the upcoming election has created, there may be a lot of glass suppliers needing to enhance inventories for some time. Prolly ply board as well. ‍♂️

533watts · May 20, 2024

Judge said: ↑

Why not check an old Maverick truck, they’ve got a ton freightliner little rock, some ex glass trucks, 300k range with warranty til 500k.

View attachment 515633
View attachment 515634 maverick have dd13 but the freightliner parksmart epu
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Its not something I'm 100% against I just love the idea of getting a new truck that'll be mine for 5+ years. She'd be babied and would get all the care packages the mega carriers like mine pretty much ignore.

Judge said: ↑

Why not check an old Maverick truck, they’ve got a ton freightliner little rock, some ex glass trucks, 300k range with warranty til 500k.

View attachment 515633
View attachment 515634 maverick have dd13 but the freightliner parksmart epu
Click to expand...

Its a solid suggestion. Maverick is a solid company and if they have epu the engine would be in better shape than what my company lets us company drivers do to them.

533watts · May 20, 2024

Banker said: ↑

I have been trucking 36 1/2 years roughly 10 of those years as an owner op. There is never going to be a one size fits all answer to your question. I do know if you would have asked the same question in every one of the last 36 years someone would have told you to wait that it is currently a bad time. It is a terrible time in the spot market for general freight currently, but it is a great time in some specialized contract freight markets. It sounds like you may have a specialized niche and if the carrier has long term contracts it could be a good opportunity since you are already in that market. Just because some are failing currently doesn’t mean you will. Also just because some are succeeding currently doesn’t mean you will. Intelligent hard working driven people will always succeed no matter what the economic conditions are. Good luck if you decide to do it. You won’t see me selling my rig until I am done trucking as being an owner operator is the best overall place in my years of trucking. It may suck for others but it doesn’t for me.
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Very true and there is a healthy balance between being overly cautious and risk adverse and being too careless. I 100% believe you could enter this market as an O/O and be successful it's just far harder in todays times. I just need to really confirm the numbers I have before I feel its a safe enough bet. I've got more O/O's in this company to speak too and more conversations with our glass head supervisor.

533watts · May 20, 2024

ElmerFudpucker said: ↑

I didn’t read all the negative post. I already know what most of them say. I’ll stick to what you asked.

I’m not tax guru, but I don’t believe the S corp route is really worth it until you are approaching a half mil in gross. The cost of filing and the added cost and burden of finding a cpa and what not. But again I am not a tax guy.

As far as the dd15. I have a DD16. I love it, but I would say at less than 120,000 gross weight just stick with a higher HP/ torque DD13. You can get them rated the same as a DD15. I honestly don’t know why freightliner offers the 13/15/16. The 15 seems redundant. Your company has spec’d that tractor for a purpose. Because that’s what works best for the application. I would stick close to those specs and maybe add a few creature comforts.

good luck and I hope it goes well for you.
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Appreciate the advice. The S-corp route just seemed appealing to me because of the income tax I could avoid. I know tax deductions are a thing but it doesn't seem possible it would equate to the same as not paying the income taxes at all. If the loan is in the name of the s-corp and the expenses stay within the s-corp and the income the company makes wouldn't show as personal income to myself = seemingly a win. I'd draw maybe a 20k salary for myself if that and be on my marry way.

Yeah I'm still confused as to why I keep hearing the DD15's pull harder. Its a larger engine by a couple hundred pounds with a bigger displacement(?) yet when I look at the spec sheet they can output potentially the same. Little confusing and perhaps you are 100% correct. Redundant. Creature comforts = happier me.

533watts · May 20, 2024

MAMservices said: ↑

Well kinda tongue in cheek, however with the volatile environment the upcoming election has created, there may be a lot of glass suppliers needing to enhance inventories for some time. Prolly ply board as well. ‍♂️
Click to expand...

blairandgretchen said: ↑

I've read the whole lot. First of all, congratulations on making it through 3 pages of this and not getting your knickers in a twist.

You'll need to set up a business to get your FEIN in order to establish a 'business account', so hang tight.

Don't change your tax structure until you're ready to go either.

You've got some good advice here from guys way more experienced than I am.

@Ruthless mentioned the 'Don't focus on where the spotlight is shining' - think about that one. You're hyper focused on the glass deal.

I've only got 10 years in on owning a truck, leased to a carrier. I can tell you this - what you thought was a solid good deal, may only last 18 months and then everything flips on its head. I've got countless pieces of equipment laid to waste for freight I thought I'd be hauling regularly - from a 70' by 50' tarp, to corner boards. And everything in between.

I'd stick with what you're doing now. Researching, keeping your eyes and ears open, saving, reducing personal debt, and planning. That's what I did for a few years before spending half of what you have saved, to enter a volatile industry that is right now about the worst I've seen it for a decade.

Good luck.
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I plan to pay a business advisor to confirm my intentions with the S-corp and I may as well wait for that until I'm closer to buy.

Thanks for the positive words. I 100% will be continuing to research and I'll slow a little down from my previous pace, just to confirm the numbers I believe to be accurate. Need to verify everything I believe I know to minimize the risk.

viper822004 · May 20, 2024

533watts said: ↑

Hi Y'all

So here's my story in a nutshell. Only been a trucker for going on three years now, got debt free, saved up almost 60k and ready to move forward with becoming an owner operator.

The company I work for primarily works with Cascadia's and I've been impressed enough to purchase one of my own, details of which I'll go in later and definitely could use some help on those details specifically. I primarily am a glass hauler, I use a regular flatbed trailer that could be used for general commodities to get me back to the glass plants then when back at the glass plant a bunch of equipment (stored underneath the trailer) gets bolted to the bed and I can run panels at most 96x130 inches. Glass pays quite well and even in this economy glass is paying over three dollars a mile sometimes approaching four. Just a lot of hard work but it's worth it in my books.

So for my situation even in this lull in the fright market and rates in general I should be able to be successful and will be in a position to take advantage of the market when it recovers which I 100% believe it will.

Alright so here is where my questions begin.

1) I'm choosing to go S-Corp as tax declaration, more complicated I will hire an accountant because I don't want to over work myself. It seems the benefits of an S-Corp as apposed sole proprietor seems quite good and outweigh the downsides. I'll pay myself a very low salary everything else including loans and purchases for the truck stay within the corp. Perfect too for expansion if that road is taken. If anyone has concerns over this decision feel free to voice them and I'll take it seriously.

2) The new truck. Cascadia. I've more or less set my mind on going new. Heard a few horror stories of drivers getting used trucks and it was just a really poor decision. Plus new truck, new warranties, and I'll get a deal by purchasing from the same dealership my company purchases from. Also planning on ordering it as it gives me more time to save most importantly and will be setup the way I choose before it even arrives at the dealership.

So my current company truck is spec'd as a 116 BBC 72 RR cab with a DD13 and DT 12 transmission. It has a single tool box mounted underneath the cab on the passenger side with a 150 gallon tank on the drivers side. All super single tires (I personally think they are okay) with a non sliding fifth wheel. All bare bones exterior no aerodynamic skirts of any kind. I mention all this because I want to add some changes but hoping to not do more than 1.5k of additional weight.

First of all most importantly I want to put on an APU. Leaning towards Green APU but TriPak came in close second. Next I would like to have the DD15 engine on the 126 BBC 72 RR cab. Amount of fuel being the same a single 150 gallon tank and where the tool box was is where the apu would be mounted and I'll put a good aluminum headache rack behind the sleeper. When all this is said and done I'm hoping to again add no more than 1.5k maybe at most 2k lbs of weight. It's important because we always run near gross with the company trucks. I'm hoping there exists some ordering options to reduce weight like lighter components or thinner/lighter pannels for example.

3) Well this is going to be determined. I'm still stumbling in the dark a little here so I'm sure I could use more advice but for now those two up above is the most pressing. Taxes and equipment. But I'm sure I'll add to this post as time goes on.

Addendum. I'd consider Volvo heard good things about them but my company doesn't use them. from what I can tell the VNL 860 is a heavier tractor, is more expensive to purchae and have a hgher MTTR (mean time to repair) because of parts availability and repair locations. Thoughts? Because I could be wrong on all of that the internet is not a reliable place.

Thanks everyone in advance.
Click to expand...

I think you should do it. You understand what you’re hauling and have been doing it as a company driver so you have more insight about what’s going on with glass than people out here hauling regular dry and reefer freight. I feel like it’s a niche commodity and in this market is what drivers need to find to be successful.

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