New owner operator

Hello fellow truckers, I was wondering if I could get some advice from a few weathered owner operators. I am going to be renting a truck and have a job that pays 65% of revenue. The statements show net profits of 16-22,000 and the truck rental is 5-6000 a month (insurance and fuel deducted off statements). So here are a few of the questions/problems I have.

1. The company is pushing me towards running on my own authority, pushing really hard actually. Why is this? and what is in my best interest? Is authority just NSC + insurance? How long does it take to get ones own authority? costs?

2. What type of company should I be creating? should in be a sole proprietorship, limited, or incorporated business?

3. Taxes, Ive been told the government robs you blind - is it as bad as say working for another company making 9,000 gross and paying 40%. What are the big write offs? If I pay my wife to do some of the work would that benefit us at all (and would that change your answer to question 2 if you said create sole proprietorship)? What reciepts should I be saving and what are the major write offs? How much could it cost to hire someone to do my accounting at the end of the year?

4. What other general advice would you give a guy like me just starting into becoming an owner operator? What are some of the biggest concerns you have in you rbusiness? What are some of the hidden costs that I will incur that I probably haven't considered.

Thanks in advance, I appreciate your teaching a young fella your hard earned lessons.

 

to imdave

Hey man, its all good. I appreciate the advice. I don't want to hear a fairy tale. I want to hear the truth.

1.As far as owning the equipment. Its a rental I can drop it anytime Its a bit more than a lease payment, but I will have no maintenance expenses and no commitment. I actually have the money to buy a truck, Id rather experiment this way and if I like it I can get a truck later. If net revenue (after fuel and insurance gross is 30-36) is 18-22k a month, I can easily afford to pay 5,000 monthly for a rental. My friend, and a business owner who rents out 4-6 of them every year says they are just as profitable as any of his 15 trucks that he owns. Good fuel mileage, no expenses or down time. Can you see my point? Or am I missing something here.

2. I yield to you here, I don't understand this too much. I thought they would want this just in case I received any infractions it would reflect me and not their NSC. Why do you think they are pushing me that way?

3. As far as I know i have all the numbers, the math works out that I could be making a lot of money. I can drive a truck and keep it in good condition. I can figure out the rest (hence why Im here). I know down in the US its a whole different ball field, and the economy is bad, but Alberta is a different world to what your probably used too. And I'm not really rushing, I have no problem learning for 6 months, letting this contract pass, and finding another. I want to get into o/o because driving is just too easy and I need some kind of challenge in life.

 

to imnuts

Thats kind of what I was thinking from reading what other guys are getting. As far as I know 70% is more common place, but I've looked at the statements they've provided me and they work out to 2.00 - 2.80 a mile. 65% of 120 is more than 70% of 100, know what I mean. the gross revenue is 30-35000, then I have fuel/insurance/accounting etc expenses. What do you think about that?

 

to imnuts

Its their trailers, I need insurance which covers non owned trailers. They are apparently willing to put it under their authority but keep saying things like "its easier, most owner operators do it".

When I say the gross revenue is 30-35000, I mean my gross - the 65%, in total with their 35% it would be $45-53,000.

 

Well, this is just a stepping stone. Its not just about money, its also about learning. After this, about 1 year of it I expect to buy my own truck and haul crude from well heads.