Is anybody really making enough profit?

I have an "S" Corp for two reasons:

1. My wife has her own business and the trucking business is a subsidiary of the her company;

2. EXPOSURE!!!!!

A corporation is an entity that can be legally separated from you the person. If someone runs into your tractor and sees "John's Trucking " on the door, as a sole proprietor there is the possibility since that someone doesn't just see "John's Trucking" on the door, they'll see only $$$$$$$$; you could lose your personal property and real property to settle in court or pay off a lawsuit.

An "S" corp is the best of both worlds IMHO

My name is not on the door. The name of the Corporation is on that door.

I have had people call me up about my rigs and complain about the "driver ran his noisy engine brake down the street" not knowing that they were actually talking to the "driver". I would reply "Ok, you know what, that's the last straw. I'm going to fire that guy". I'd hang up the phone laughing that the idiot on the other end was happy with the answer.

If anything, remember: EXPOSURE..KEEP it to a MINIMUM .

 

Yes I had to work realy hard, but I run a business first, and drive a truck secondly. I posted my numbers only to show that it is possible to be profitable as an O/O. How much one wants to put in the bank will dictate how hard they are going to work. Ask any small buisiness owner in any industry who works the most hours in a day, the owner or the employee? As a O/O you are both.

 

In the event of an acident, if you the owner are driving the truck, you have no protection. I live in Texas and can not lose my home in a law-suite. I can lose everything else, which is not much. There is a CPA named John Turner that specializes in the trucking industry. Google his name. He has a web site and can validate what I'm saying.

 

You have your corporate tax filings and your personal tax filings...they are separate but you can get them done at the same time for year end. We on the advice of our new accountant will file quarterly for the corporation.

 

This January I ran 14500 miles. I will calculate my February numbers later this week.

I would agree that starting a flatbed operation in Dec. of any year is not the best of timing. Nor is the soft economy going to help.

I do well because I'm leased to a carrier pulling a dry van with lots of drop and hook. I'm paid by the mile with a fuel surcharge on all loaded miles. My deadhead last year was 7%. I also get huge discounts on fuel (.055-.45) per gallon. The company pays baseplate and permits, tolls, & qualcomm fee. I pay the discount price for tires that the company gets. All these discounts add up to more money to my bottom line.

The issue is not just how much you gross, but how much of that gross you get to keep.

 

I don't doubt what you are saying but that in this case applies to Texas which is much different than CA.
In CA lawsuits are on the daily menu. So what a Corp does is limit the exposure. When I worked for a construction company I was named in a lawsuit along with the company, the general contractor, the city of Irvine, and the rail road. This women rear ended another car after I flagged her to stop to let out a mixer into traffic. Everyone else got off since they were either protected or in the case of the contractors were additional insured and the sh** rolled down hill. Her lawsuit was later thrown out because she claimed that since I was not law enforcement, a fireman, or a CalTrans worker, I had no authority to control traffic legally. The company's insurance agents researched the vehicle code and found the loophole and the case was dismissed. Had they not found that loophole according to the company's attorney, since I was the only "living, breathy" person directly named, I could have lost my house in the lawsuit. Again it's about the exposure and maybe in Texas it's different but in CA, it's all about CYA.

 

So you make good money as power only if I read you right?