Driving for an owner as an independent contractor questions

Discussion in 'Ask An Owner Operator' started by 101driver, Apr 29, 2012.

  1. 101driver

    101driver Light Load Member

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    Apr 22, 2012
    Winston-Salem, NC
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    Hi,

    I'm thinking of going to work for a vehicle owner that has a contract with an expediting company. I would basically be an independent contractor, because i would have to pay my own withholding taxes, insurance, etc.

    The owner is registered as an LLC, and I woud be contracting to that. The company pays per mile for the runs, and I would make 60% of that. Plus, they pay a fuel surcharge, which I would get 100%.

    What would I need to do to be legal? Do I need a business license? Should I form an LLC? What else do I need to know?

    The vehicle is a Sprinter. As long as the vehicle is below 10,000 pounds and I don't haul hazmat am I correct that I don't have to keep a log or cross scales?

    Is this arrangement a good one? I would get 60% of 82 cents a mile, plus the fuel surcharge of 18 cents a mile. Of course I pay fuel/tolls/parking, but the owner pays all other vehicle expenses including maintenance and repair, and insurance. From what I've read the Sprinters get around 20 mph.

    thanks
     
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  3. Roadmedic

    Roadmedic Road Train Member

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    If you applied to Swift and they wanted you to work under this same scenario, would you do it?

    He is an employer, you are an employee. You do not qualify as an independent contractor. You are providing only a service of driving.

    No workmens comp. No insurance. No unemployment.
     
  4. windsmith

    windsmith Road Train Member

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    Personally, I would pass on that 'opportunity'.
     
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  5. MNdriver

    MNdriver Road Train Member

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    I wouldn't even pass...

    I'd run away.
     
  6. 101driver

    101driver Light Load Member

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    Apr 22, 2012
    Winston-Salem, NC
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    guys, i'm really green and new here. please tell me why you think those things?
     
  7. MNdriver

    MNdriver Road Train Member

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    because you are his employee not an independent contractor.

    As an employee, you should be having social security and other taxes withheld and paid by the employer.

    Legally, you don't even meet the definition of an independent contractor.

    If he's doing that, that means he's also pocketing the 7.5% of YOUR WAGES that he is supposed to be paying towards your social security and medicare.

    Which mean he is making YOU pay it when you pay self-employment tax.

    YOU are getting screwed 6 ways to Sunday.
     
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  8. 101driver

    101driver Light Load Member

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    Apr 22, 2012
    Winston-Salem, NC
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    i see.
    anyone else care to chime in? i was just about to say yes.

    the owner says his drivers are making 1200-1600 a week. a company driver i know said at his company first year can make 40k, which is 769 a week.
     
  9. MNdriver

    MNdriver Road Train Member

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    well,

    15% for self-employment tax
    10% for federal tax
    5% for state tax.

    that's about the same amount.
     
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  10. Roadmedic

    Roadmedic Road Train Member

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    I knew this was a waste of time before I made my post.:biggrin_25526:
     
  11. Onetruckpony

    Onetruckpony Medium Load Member

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    Take your taxes and expenses out of that and you make less.
    This company is looking for a way to skirt tax and labor laws.
    Most of these wind up bad.
    If they'll screw the Government they'll screw you!
    Run Away!
     
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