IC, O/O or O/O with own authority?

Dieselgypsy1- Good luck, I hope you make it, there are a couple of threads on here of guys who have been able to make a success of it.

 

OK, here's my response. Actually, OO isn't a legal term, nor is independent contractor, really. But, Contract Carrier is, and that's what an OO according to DOT. However, Contract Carriers who own only one truck and drive it themself is different than a fleet. You won't be required to do things employers do, like having paying workman's comp, and you will probably be a sole proprieter By having your own authority, you become legally separate from a broker, and a broker will be breaking the law if they act like a carrier. The Dept of Transportation websites will explain all this stuff as you complete the on-line forms for your DOT and MC numbers.

 

not having to pay workmans comp is entirely dependant on the state I believe. SOme states do require it on yourself i think. I know landstar requires us to carry a form of it, and of course they just happen to provide it for purchase!

 

Just subscriping to the thread guys.

 

Just because you have you're own authority doesnt mean you will be able to haul loads directly from the shippers. Alot of people think it's easy but in reality its a lot harder to book loads especially if you're a one man show alot of shippers wont even look at you unless you have 5 or 10 trucks. Some will direct you to a broker and if you think youre going to make money pulling loads from those load boards well you will be luck if you break even the rates there are pathetic i have a friend with his own authority he's been doing it for 12 years now. And i wouldnt want to be him that;s for sure. Just remember you will bare all the responsibilities. Tires, road service, load claims, etc. etc. etc. But hey maybe you will be able to make it big.

 

When you lease on to a company, do they take care of the repairs on your truck? Tires, etc. What if you lease on and 3 months later you lose an engine or tranny? Do they terminate your lease until you're up and running again? How does that work?

 

Most places you are responsible for all of your tractor expenses and they are responsible for the trailer expenses. However, a lot of these company's can get you discounts on tires and fuel. Each company is different.

From my expericne, as far as terminating your lease if you get a breakdown, that is likely not to happen, most company's do everything thye can to keep o/o's. Any charges (insurance, fuel, etc.)you have coming, will usually be helduntil you get running again and then they will take the charges out of your statements. Most companys are pretty flexible and will work with you as an o/o.

 

Whats the reason they want to keep you so bad?

 

O/O's are constantly switching companies trying to find where the grass is greener. It creates instability for the companies that need to keep a good quanitity of trucks on staff.

 

I see. What's your thoughts on trying to lease on to a local end dump company that hauls rock and sand within a 300 mile radius?