how to get rolling

No, if someone is driving a truck owned by someone else, that person is legally considered an employee, not a contractor. You can't legally be a contractor and drive a truck owned by the guy paying you.

And because of that, you have to pay on a W2 because since they're your employee, you have to also pay your half of the employment taxes.

Maybe workman's comp is not so much of an issue, I thought it was a requirement everywhere. I know in Michigan it is.

 

Drivers who lease a truck from the carrier to whom they also lease on the truck are not considered employees and they don't own the truck. There are other career choices where workers are not considered employees. Paying on a 1099 or W2 is a choice between a company and worker. There are guidelines provided by the IRS, but they can be somewhat murky in some situations. The IRS has rules, but they cannot make laws. That is the responsibility of congress. Some have posted that paying on a 1099 is illegal. It isn't. Not filing your taxes is illegal. If you agree to be paid on a 1099, then it is YOUR responsibility to pay YOUR taxes. Being paid on a 1099 does have some advantages. Some people prefer being paid on a 1099. If you happen to be one who doesn't want to accept responsibility for paying your own taxes, then find a company that pays on a W2. It is really that simple.

With workers comp, each state sets their own guidelines. It is based upon the number of employees and there could be exemptions, in some cases. I prefer an occupational accident policy rather than workers comp. Most owner operators will have an occupational accident policy. Workers comp is usually more expensive and can be more of a hassle. If you have enough employees that requires you to have workers comp, then you may not have a choice.

 

Rules from the IRS were posted. You just have your opinion.

You still have not posted the rules showing that it is legal when others have posted the rules showing that it is not. The rules from the IRS are far from murky.

 

I started 2 years ago as a company driver. 6 months ago I bought a truck. I plan on having at least 5 on the road before I jump out of the drier seat. I should be able to buy another truck in 6 months, then another every 6 months after. Profit is much better if you dont need to pay a driver, so it really depend on how much you want to make. My plan is to not drive daily but keep the trucks moving when drivers take vacation and such. Even if you can afford a truck, no one will hire you as an owner operator untill you have at least 1 year experience as a company driver.

 

I'm going to echo what some of the others are saying. There's no substitute for experience. In order to be successful in any business, you have to understand it, and you simply can't understand it unless you have experience with it. It's okay to start at the bottom. Some of the wealthiest and most powerful CEO's in the US started their careers in mail rooms. Doug McMillon, CEO of Walmart started his career in the stock room of a store location. John Stumph, CEO of Wells Fargo started as a repo man. Clarence Otis Jr. of Darden Restaurants (Olive Garden, Red Lobster) started as a waiter. There are many more examples, but the point is that these men are successful because they understand what their employees days are like because they've done their jobs. If you want to be a successful fleet owner, you MUST understand what your drivers are experiencing, and the only way to do that is to get out and drive.

 

Looking for some advice please. I am experienced driver but with bad credit, like many of us. Right now leasing a truck and contracted to a company but I am looking to getmy own authority. Does anyone know a leasing company that will help me lease another tractor with no down?

 

I'm 45, Single and Been off OTR for 7 years. I'm finding it rediculous on how to get back out there after I have driven everything under the sun on and off for 13 years before then. Now daughter grown and out of college I'm wanting to drive OTR again, FOR ME!!. Luckly I'm single, No debts, good credit and no need to rush home. I was thinking this might be great time to buy my own truck . Question I have for you owner ops is shall i get my own authority or lease on. Or lease purchase deal ( which i mainly heard bad things about already). Advice on all aspects GREATLY appreciated. Where to search for truck, Best deals, New or Used? . Freightshaker,Volvo? Financing? I already have mechanic i trust lined up. So have something started . LOL I have no clue where to start or trust. Very nervous but knowing i can easily keep the truck rolling. never been one to always take time off, drink, gamble etc...... Thanks ALL and hope ALL is safe. Look forward to getting started with your advice.

 

With bad credit and no money, you are not likely to find anyone who will be willing to lease you a truck unless it is from a carrier to whom you turn around and sign a lease with them. There are a number of carriers who will lease you a truck with nothing down. Payments will be high and you will find it difficult to take time off due to the high payout. There could be weeks in which you are in the negative or have little or no net revenue when you lease a truck from your carrier. You won't be able to take the truck to a different carrier until it is paid off. You will also pay much more than the truck is worth, if you complete your lease. You can expect to pay at least 30% more than the equipment is valued.

 

Your first obstacle will be finding a carrier that will hire or lease you on without recent experience. From your post, it has been 7 years since you last drove a truck. Most carriers will require you to take a refresher course without experience during the past 3 years. That will be as a company driver or if you want to lease on a truck with them. If you have kept your CDL current it will make some issues much easier with which to deal. I usually recommend taking things a step at a time. It would be easier for you to just lease on with a carrier than get your own authority. You will need to overcome the lack of current experience. Once you have 6 to 12 months of current experience, it will be much easier for you to find a carrier to whom to lease a truck.

If you want to get your own authority, you will need to lay out quite a bit more money to get started. There will be more risk. If you kept your CDL up, you should not have a problem getting insurance. Most insurance companies check how long you have had your CDL rather than checking the carriers to whom you may have worked. Progressive will sometimes cover those starting out, but may impose some restrictions. That would be the place to start if you want to get your authority. You will need the cash for a down payment on the insurance, base plates and permits and a down payment on a truck and trailer. The down side to running your authority is that you will find it more difficult to find loads without your own trailer. You could rent or lease a trailer if you can't afford to buy.

If you choose to buy a truck, I would stay away from anything new. It would be much better to find a good truck that is a few years old rather than starting with a new truck. Payments on a new truck will require a large down payment and very high monthly payments. You can expect payments of at least $2,500 on a new truck. The 20% or so that you will need to pay down on a new truck would be sufficient to pay cash for an older truck that is in good shape.

I take my time when looking for a truck to purchase. The first thing you need to consider is what type of freight you want to haul and then find a truck to match the task. Don't get caught up in all the chrome and flash when looking for a truck. It won't make you more money to have the fancy truck. You will likely be able to find a better deal on a Freightliner of International. Volvo makes a good truck and will be near the same price range. I would start with The Truckpaper. You will find private and dealers who are selling trucks. If you plan on running California, you will need to buy a newer truck with that is CARB compliant. If you pull a van or reefer, it will also need to be newer and meet CARB specifications if you run the left coast.

With the gap since you last drove, it would really be better for you to find a company and drive one of their trucks for at least six months or so and then buy a truck. The current experience will hone your skills and prove to others that you still have what it takes. This is a crazy business run by the insurance companies. They don't like risks. If you can show current experience with a clean mvr and csa, you will greatly improve your chance of success.

 

Gman Thanks so Much. I agree and have always said If I ever bought a truck it be a decent used Freightshaker cause it best on fuel and can do same thing as those fancy trucks do. Tho I'd like it to be pretty decent as I'm a very clean Non-Smoker and plan to do this forever as my daughter grown and moving on and I'm single. I have had my CDL Class A for over 22 years and ALWAYS been spotless ( Knock on wood). I was considering own refer trailer as that opens the door for dry and cool and frozen loads. I have already lined up my mechanic here . I already checked out on here and other sites that those lease purchase deals are all a rip off. Cause of that and all want recent experience it only leads to owning with authority or leasing on. I'm trying to get in and outs on getting started, where to maybe start like insurance, financing etc.... to start researching that. I got ya on progressive. I have been shopping for trucks but think it best to start getting info on average cost of all insurance( load,B/T,etc..) same insurance handle it all? Whats an average payment? Who shall i get to handle fuel taxes etc?? to trust. I'm checking every angle and researching everything before i jump. Is there a single company i care hire to handle ALL paperwork , taxes etc?? Who suggest? My head bursting from doing this all day everyday for days but I am plugging away and eliminating my worst options. All feedback REALLY APPRECIATED. Don't think finding a truck being a problem. Wanna figure rest out first before truck and trailer or leasing or authority.