New owner operator

30-35 after their cut seems high...but maybe if you shipping premium bud?! I've never hauled blower units but know buddys that have and I'm sure they wouldn't mind a piece of that action.

 

Times 2, and Im in the good ole U.S.A.

 

I'm not saying there are no good gigs out there but it sounds over simplified....kinda like when the infomercial tells ya you "can" lose up to 2lbs per day and automatically I do the math and figure I will drop 60lbs in a month!

 

Unless we personally know the company we really can't say if your authority is a good idea or not.

When I say over simplified its the things that you cannot plan for ie., weather, can't load or unload (for whatever reason), break downs, holidays, etc etc etc....but you didn't need me to tell you that, you've been driving for years. I just spent (wednesday) 6+ hrs trying to travel a few miles to get to the Flyn J in Edmonton.

As for accounting.... I have no idea (and that's not a good thing). My accountant does everything including my farm, all I have to do is drop off a box of rcpts. I know what I pay him and it aint much (poor bugger) for what she puts up with and my pea sized brain.

 

The percentage of gross has little to do with the bottom line, the percentage you get to work with does.
Does the rental include maintainance? who pays for tires? (the rental sound like a great way to find out if you really want to do this.
Other than set up NSC requires pretty much the same paper work for your own as to run under someone else.
Read the requirement for NSC Alberta if you are intraprovincial, national if you are intra provincial.
Talk to the other O O s that work for the company and talk to other drivers.
You should get a good accounting program for your computer and keep track of things so that you know what is going on, this is a bussiness, not a game where you count your pennies at the end of the month.
Being an owner operator requires a real love for trucking, not just another job.

Can you run under the companies wing for a set period to see if this works.

 

Well, after reading this there are some very good comments, but few of them seem simplified enough for a real newcomer. Most of these guys just have too much experience and have done it for so long that they forgot how much of a pain in the rear this was, or that the regulations have made it much more difficult in recent years.

I will start off by saying that I am US based, and am not familiar with the canadian authorities. I know it is different for each province, so you will have to look into that for the costs associated with that. I am sure there are companies who can get you set up for a fee, but that is usually much more than it would cost you to do it on your own.

In the US, there is IFTA, which is a fuel tax based on your state, where you drive, and the number of miles you have driven. There may also be this type of thing in CAN, but I dont know. If there is a local department of transportation office (or equivalent) go in and talk to them. If no one is local, call them. They will be very helpful in letting you know how to set everything up and what you will need.

Your question about whether to set up as a sole proprietor or a corporation is a valid question. As a sole proprietor, your taxes will be very easy to do and requires very little on your end (and if your wife is doing the bookkeeping, thats not a problem). The downside to this is that you are personally responsible for everything. If the truck rental works out, and you want to buy the truck, its all on you. if anything happens that is outside of your insurance coverage, its on you personally. This means someone can sue you for anything and take your house. If you set up as a corporation, there is a bit more work and more fees (initially), but you can put everything in the company and you are shielded from personal loss. Also, as a corporation, there are a lot more write offs and tax loopholes, so you can end up paying less in taxes.

As far as your month bills for an accountant, if you can teach you wife how to input receipts and make invoices in quickbooks (around $200 one time fee), your annual accounting cost will be that of the accountant at the end of the year. Thats all. Also, if she can keep all of your records in order, you can set up custom excel spreadsheets to calculate costs, profit, miles driven, exact MPG, etc, which will make it easier for you to figure out how much you are actually spending and how much you are actually making.

As far as other costs, aside from the standard ones, you have to think about things like tires (at around $300-$500 each), breakdowns, unexpected delays, etc. You said that the $5000 per month includes maintenance, but that usually means the will change the oil for you. What if your turbo blows out? Thats 3K that you need to spend ASAP, otherwise your not making money (and dont drive like that, it will cook your wiring and give you a headache, ask me how I know). What kind of transmission? what if you topped it up with some 80W when it needed 50W synthetic, and now you have made the most expensive paperweight you ever bought. Find out what they will and wont cover, and then assume everything they dont cover will break (and at the worst possible time).

Yes, when someone talks about authority in Canada, it means your registration, plates, fuel taxes, and company are all registered there. If you are from the US, and you want to do haul in Canada, just make sure that your insurance covers it and call the US DOT to ask if everything is kosher. Google USDOT canada and it will point you in the right direction.

If you have your own authority, it opens up some options for you. You can work for any direct company or broker with your own authority. If anything happens to this sweet gig you have now, you can instantly go work elsewhere. If you dont, you have to rely on brokers who cover you under their authority. And as far as the associated fees with getting authority (in the US its $300, but a pile of paperwork), you can write it off as a business expense.

I hope this helps answer some of your questions. I have been dealing with this myself recently and know what a pain it can be. If you have any other questions, I can try to help. I am sorry if this is a bit long winded, but I just wanted to be clear.

 

You don't need experience to figure this out. Some of these guys have been at it for years and still think they are better off driving for .29 cent a mile and working 7 days a week as an owner op verses .50 cents a mile and paid days off working 5 days a week as a company driver