Friend wanting to lease his trucks to my company, have a question...

do your math my man! Make your money.

 

Some thing else to think about if his drivers become your employees does that make you liable for repairs to his trucks when they tear them up , I understand general maintenance would be on him but what about when your employees jack knife his truck ??

 

I have a little different twist for you. Do not put them on your authority. Set up a new company corporation with you and him as owners. Get new authority for the corporation. Leave your trucks in your own authority. This way if it goes south you can end the issue with no hit on your numbers, AND explain to him if it works well, both of you will be making more money. Being he would have his own trucks, one benefit would be not needing bobtail insurance. Both of you may benefit from the ability to have better contracts with more volume.

 

Think about what Landstar and Mercer do with their fleet owners. Jon with 5 trucks lease them all on to either company. His drivers have to qualify just like a regular O/O. If everything passes through then the company will cut a check to Jon and then he pays his Employees. Now let's break it down a bit for your situation. Mercer would charge Jon 25% of the line haul per load and he has to pay for his own trailer. Land star will charge 35% for drop and hook and 27% for renting a permanent trailer from them. You with me. Jon pays everything but cargo. Mercer will help find loads out of the 25% Landstar..... Well he's on his own like a big boy which he should be. So for you, you gotta consider the big O/O companies don't deal with drivers when it comes to pay and such. I agree with @Flipflops in this unique situation make em pay since your taking on another headache. Me personally I'd offer him out of 100% gross 35% for driver 35% for your company and then he gets the rest of the 30 after his expenses. It'll sound like you're being greedy but you'll be wearing more hats now and prob have to hire more help

 

It sounds to me as if he has a boat load of headache he wants to dump onto you. Legally drivers don't get paid with 1099s. Drivers are employees not contractors. Do all of your homework so you don't get into something you don't want or need. Don't rush into this for his benefit.