Most Common Mistakes Made By New O/O?

im new to this threat what kind of formula do i have to folllow

 

where do you find these/??

 

Im kinda fighting indecisions here i was more incline for a cat engine on any truck but now i back out because they r not so efficient on saving fuel . A tractor that dont make 6 mpg its gonna ruin a newbie pockets for sure. I think i would go 4 a cummings with about 300k with 10 speeds and these are costly. Other is what kind of thing should we look for on an used engine. I know that on old cars when you replace the egr valve and air filter saves more fuel. But so far no O/O have been mention what things to look for on an engine that can make you loose lots of money. I know someone mention a Dyno and engine history. I know also not to go for lease purchase lots of drivers had been involve on financial situations because of this , had a friend on the past was involve with England crooks.

 

Im a newbie here .how do i do this. Is this the same as LLC or S -corp?

 

When I bought my truck I told the dealer I wanted a dyno and oil analysis. They drove the truck down to the CAT dealer and had it done for me. Total cost was $350. If your truck has a cummins or whatever, take it to those places. Your dealer will know where they are.

 

An LLC is an legal entity filed with your states Department of State. Call them and they'll help you out. S Corp is a tax entity filed with the irs after you get your EIN. I DID NOT register as an s corp, but as a single member LLC. Get an accountant and let them do all that for you. Mine did it for me for free.

 

Owner operator, pulling general freight, wanting a truck that will be a strong performer with loads 80k and under?

Easy. The best engine for that is the old school 12.7 liter 500 Detroit with a 13 (18913A), And 3.36-3.55 rears. Good, strong reliable engine, pulls great, revs all the way to heaven, good fuel economy and cheaper to fix. Win win. For an all around America truck, it is the all around best engine. Heck, even with a 10speed or super10, it’s still a good choice. If you want to left lane it, it will left lane it. If you want to right lane it, it will right lane it.

 

Fuel economy is everything IF you are going to haul freight for cheap. However, if you are able to pull freight for north of $2/mile for all miles (including deadhead and personal conveyance), then fuel economy is not as critical. In my opinion one of the biggest mistakes a new owner operator can make is leasing on with a carrier that pays $1/mile plus fuel surcharge. That's a good way to go broke in a hurry, you end up "buying a job" rather than actually running a business. You want to make enough to pay yourself WELL and still make a good profit on top. That gives you the option to hire a good driver, pay that driver WELL, and make a profit.

 

What tax rebates do you get as an LLC that you can't get just the same as a sole proprietor? You can operate under a trade name, just the same. You can write off basically everything short of hair gel as business expenses. I've heard, and believed myself, that an LLC will protect your assets in the event of a suit, but that is just not the case if you're the driver involved in an accident. What benefit do you get from an LLC?

 

An LLC gives you the best personal protections: they can take your truck, but not your house, in sum. Being in an accident has nothing to do with it, your company is a separate entity from you. As for tax benefits, I would advise you to talk to an accountant. I know that in 2018, the Trump tax plan gives you a 20% discount on taxes as an LLC, I don't know that sole proprietorship does that. Also as a single member LLC, my business tax of 17.5% plus income taxes, I'm looking at about 35%. As sole proprietor I don't know what that would be. That should give you an idea, but take it with a grain of salt. I highly recommend you find a good accountant.