50/50 starting owner op team drivers

Sounds like he's going to be paying for half of a truck that he likely will not have any ownership in if things go south between them. I wouldn't do it, but I also would never go into business with friends or family.

 

I have to ask...and I'm being very serious.

How un-smart is your husband?

 

Hmm...well I guess there could be the issue of how the revenue is divided up. The guy who owns the truck could want to decide to put extra money into the truck payments, and although not a bad idea, your husband wouldn't have any say in it. 50/50 of what, exactly? Too many variables.

Dry van team could probably feasibly gross $550k in a year, depending on the condition of the unit, probably cost $200k to run it, if I were your husband, I'd just ask for $120,000 salary instead of being a business partner. That should be enough to mitigate the risks of being a "business partner" and still make good money. Have your husband have him pay him on a W-2 with all the legal necessities. Straight up $120 grand. That's worth missing out on possibly an extra $30-40k if things go south with the plan.

Many on here will tell you how business partnerships between friends have a tendency to go south. I've seen it happen to family and even my best friend.

Just ask for a high salary.

EDIT:
On a side note, if the other guy balks at wanting to pay a salary like that, then either he doesn't know what he's doing, doesn't know his numbers, etc and then I would think that he isn't serious and I would politely decline to have anything to do with it.

 

You husband will have 50% of nothing if his name isn't on the truck too.
Here's the other thing, they may be friends but when you get cooped up with someone 24/7 all those weird idiosyncrasies that we all have get exasperated.
I teamed with a friend for a short period, we wound up never speaking to each other again.
Will this happen to your hubby? Who knows? But if things go south your hubby will walk with nothing while the other gets a possibility paid off truck.

As was already posted the best way to go IMO is a salary on a w2 NOT! on a 1099.

 

I did this a few years back, but we used a numbered company to put the business and truck under. Then we both had 50% of the shares. Also we bought partnership insurance against each other so if one of us kicked the bucket, the other would have the money to buy out the shares.

 

At least 60/40, don't take on burdens that are not legally your own.

Your husband isn't partnering with the guy, he is driving for him - if he was partnering than there has to be a contract and legal status that has to be established.

 

What uncleal13 said. I would establish a company & both guys are owners of the company. The company pays all the trucking bills including the truck note. However, I wouldn't split the profits 50/50. I would probably split 50% of the profits 50/50. The company has to have some profit.

Anyway, there's ways to do this but your husband is not in a good situation.