2 years experience, want to go O/O. Buy or Lease?

They don't pay their share of the taxes they are supposed to by law. They call him an independent contractor and 1099 him even though in most cases it's illegal. They don't want to pay their percentages including W/C.
Social Security tax: Also called FICA tax. The rate for this tax is 6.2% and applies to wages up to $118,500 for the year 2015. This tax is paid on gross pay minus health premium deductions and some other pre-tax deductions. Medicare tax: The rate for this tax is 1.45%

 

I recommend an older, used truck that you own outright. Same for the trailer. No payments will be a huge plus while you're paying high insurance rates and making your rookie mistakes. Start small and grow. Down the road you can get fancy. For now, get something reliable and go make some money.

 

If you can afford it, get it. I wouldn't recommend spending all your available funds on the truck. Save some reserves for new tires on the truck and trailer. Also keep in mind the first weeks fuel bill and all the fun and fees to get your authority and insurance. Are you going to use a factor, or do you have operating funds for at least two months? All these things chew up a good chunk of change. Don't be afraid of a pre-2008 Freightliner with a 60 series detroit. Great starter truck, cheap to service and maintain, good fuel mileage.

 

Leasing has its benefits as you can use the payments as tax deductions talk to a qualified accountant as to what they feel is your best option.

 

Full maintenance lease most everything is covered except brakes tires etc.
Everything is a write off and all costs are fixed except fuel.
Always driving a new truck with minimum down time.

 

There is something wrong with this truck if the posted mileage is correct. If it's 620000 miles, then it's about right.
Own/lease a trailer or using the broker's equipment?

It depends on the business model you want to run in.

If you want to.pull your customers equipment, that's fine but it will come with loopholes.
Example: if a contractor pulls one of our trailers and a tire blows, the contractor pays for it.

You can as well provide the service with your full line of equipment and run with your own tractor/trailer.