New Authority

These are all good questions.........Any question regarding starting youre own business is good.

A good CPA will direct you on where to put your profits........My Money works for me, I put 5% weekly in an IRA through my Bank......

Make sure you have MONEY working for YOU...Otherwise, After Time, Your going to Feel like your working for Nothing. Even though you technically are making profit..(Kinda hard to explain, But i think you may get it)........

Set yourself up for Success........Put as much away Weekly as you can in an interest bearing IRA....Or High intersest paying account,

As for equipment........There are so many variables on what to do, Old,New this and that...go with your Gut.

Obtaining quality customers.......THIS IS THE MOST IMPORTANT PROJECT OF BEING A PROFITABLE CARRIER.

Get your GOOD Customers and dont LOSE them to anyone!! Service still matters to most......Cusatomers do Shop Price, But when you can service their needs,consistently, They wont even Bat an Eye with anyone else.

Dont be a 'Hillbilly or Supertrucker" Operate your business as a Professional at all times....100% of the Time (Look Presentable.Talk professionally to everyone you encounter)

This is a very tough Business...But you can be a success!!

 

You can do like I am doing, I have my own authority and I contract freight services from Artur Express. For 17% of the load, they provide the trailers, the insurance on the trailer and the cargo insurance. They provide the loads so you don't have to chase them on your own and you get a dedicated dispatcher to work with. There are plenty of freight forwarders and logistics companies that don't have their own trucks that will contract with you in similar arrangements. It allows you to age your authority and build business references while still making a steady income.

 

I was curious About the setting up the dot number early to build some time.

 

I was a small employer in a niche market of Hauling Mobile Homes. Was running as many as 6 trucks. 12 employees. When I first expanded from myself with another driver, I put myself on salary payroll. This gave me the option to be covered by workmens compensation insurance. Now that I have shrunk back to just myself, I don't have work comp anymore and I use my LLC to operate, instead of my stock corporation. There is advantages to both or all three options. Single entity of self-employed (not incorporated), LLC and stock Corporation. I have no steady customers, now. I use the load boards to get work and I focus on Oversize. Best pay for the mileage. I run a 48 step.
I think the expense of having the insurance to keep your authority active is a waste of money. You can get work with your experience, explain to broker your personal driving experience. Some brokers will not hire but there is plenty work out here to keep busy.
Maybe you could find someone to run under your authority for the year or two with a local run and give them a break on the insurance cost. Maybe a local O/O set up with a local run with no broker involved.

 

In my opinion, a new DOT number does not matter. Yeah a few brokers will not work with you but so what? There is enough business out there that you will find loads with no problems. Take that money you would have paid in insurance and put that into an emergency fund account.

As for the business and your salary, if you are going to want the protection of the LLC or Corporation you will need to pay yourself a salary. You hear all the time the term piercing the corporate veil. Well that means to break through the personal asset protection afforded you by the LLC or Corporation. The biggest thing that you need to do is NOT intermix the business and personal money. NEVER, EVER pay a personal expense with company funds, not even for a pack of cigarettes or a taco. If it is not a business expense, never use business funds.

A corporation or LLC is a (according to the law) living, breathing entity and separate from you. Once you spend company money on yourself (short on grocery money one week) you are now one with your Corporation or LLC and the lawyers will come after your personal assets.

One of the Rich Dad series of books explains this all really well. It is called "Own Your Own Corporation" and is written by a lawyer. It is pretty well written laymans terms that most can understand. It also explains how to protect your equipment by having that in another corporation.

 

Good for you. Good luck with this adventure.