Truck lost in Sandy, need advice. What would you do if you start again?

On the opening page to this The Truckers Report, the first article you see is OOIDA. Contact OOIDA and they will point you in the right direction and answer your questions.

 

Set it up as a corporation. I am not familiar with the different types in the US to recommend which type is best but he needs to remove liability from himself personally and move it over to the company. I would assume he would have had to have all the regular insurance already. General Liability, accident, cargo insurance.

I would avoid the truck. Pick up either a model year 2007 or earlier or 2010 or later. The dpf only engines (EPA 2007) have been a pain for everyone. You will save money in the long run buying something a few years newer or older as they are more reliable.

Financing for trucks is always a challenge. There a not a lot of companies that will do it. Most banks will just say no as its not a business that they understand. Still ask around at your local bank or credit union they may help but you will probably get a lot of noes. Just don't take it personally.

 

If the ports require you to use a newer truck then that is what you will have to use.
To explain what I was talking about. Over the past decade the EPA has come out with increasingly stringent emission standards for trucks. In 2004, 2007, 2010.
The 2004 engine manufactuers added Exhaust Gas Recirculation(EGR) to engines. This is a process where exhaust gas is fed back into the cylinder to replace fresh air and therefore less oxygen to reduce the amount of Nitrogen Oxides (NOx) produced.
In 2007 they had to further reduce emissions by adding on a diesel particulate filter, this reduces the amount of soot expelled into the air from the engine. The soot builds up on the filter eventually clogging it. The engine will go through a process called Regen which is when it will try to burn the soot off, when this is happening the engine loses a lot of power. Eventually the filter will need to be cleaned or replaced. Usually after you are broken down.
The 2010 rules required even greater reduction in NOx production. To do this a Selective Catalytic Reducer and a fluid called DEF or Diesel exhaust fluid has been added on to engines. The DEF is a liquid that contains urea which reacts with NOx in the exhaust in the SCR to create water, Nitrogen gas and Carbon Dioxide. You can pick these trucks out as they have a small tank on the drivers side with a blue cap on it for the DEF.

The DPF only engines have given drivers the most issues and is why many are avoiding them. If you are able to purchase a DEF truck I would if not look at buying an older model and upgrade to a newer truck before the 2016 restrictions come into place.

There are further rules coming in 2014 which will require a reduction in Carbon Dioxide emitted. Most manufacters seem to be doing this through a combination of engine modifications as well as increasing the aerodynamic characteristics of their trucks.

These rules all apply to the model year of the engine not the truck. Most model years are a year ahead of the engine year.

 

Buying a truck now , for 2016 regs , is a little nuts. Buy something that is going to make you money for the next 3 + years. When they just won't let you in anymore, than re-evaluate.

 

Setting up a corp. for one truck is pointless, you loss some deductions afforded to sole owners and you're still legally liable anyway.
being a corp you have pay yourself a salary and deduct taxes and file quarterly. Being a sole owner you can file annually and get money out as you like.

 

And if you go bankrupt they will take your truck and anything else you own to pay off any outstanding bills. I would prefer that they just get to take the truck. The owner or director of a business is only liable for the actions of the business when they are negligent/fraudulent. Sure if you are drinking and driving they are going to come after you no matter what, but if you just can't pay the bills why would you want the banks/courts take your house or your personal car.

 

I'm no expert, but as I've had it explained to me these protections afforded by incorporation are a myth. It's still your signature on the bottom line. More importantly however why plan to fail ?. Use whatever set up is most advantageous to your current situation. If one day you work your way up to being SWIFT than sure.