Crete Carrier - A Year In Review - Fall 2013 Going Forward

Lone, when you became an o/o with Crete, what was the legal stucture, were you a sole proprietor? Did you use a DBA? Just your name and social? I ask this because i am starting the process to get my own truck and lease on to Crete.

 

Murphy...if people try to talk you into it, you don't need to from your own corporation (as in S-corp). People will try to tell you it is to protect yourself in case of a serious accident, but experience has taught me that, as long as you are the driver and the head of the S-corp...both would be named in a lawsuit. So unless you make a big success of it and purchase many trucks and hire drivers, incorporating isn't necessary.

When I owned my own, I had my own FED tax ID and was considered a sole proprietor. Which means you are responsible for reporting and calculating all taxes....both income and self employment taxes (O/O's version of FICA). Crete just sends you a 1099 for total earnings.

 

I have had an S-corp in the past and agree that it isnt necessary here. Did you just use your name or did you use a dba and a separate business checking to get your settlements and just pay yourself a certain amount each week and let the rest stay in for taxes?

 

I was a sole proprietor. I had to get a federal tax ID.
With freight rates the way they have been, you would probably do better with a good percentage paying company. You could possibly earn $20k or more per year compared to a mileage pay scale. Something to investigate.
I have a friend at Mercer and a friend at Packard pulling flat and stepdeck. The seem to be around $1.75 /mile all miles.
But they have to provide their own trailer.
And there is Landstar and Schneider.
I do see Crete raised o/op compensation.
Crete treats their o/op kinda like company drivers. At other companies it sounds like you are treated more like a truck owner with many more load choices and freedom with potentially better pay.
I have been off the road for about 3 years because my parents are elderly and need someone here. So when I can go back to work, my options may be limited due to a lack of recent experience. So I won't rule out Crete in the future if necessary to regain some experience.
I suggest you read some of the Mercer thread and the Schneider threads of their o/op's . And compare their numbers to Cretes mileage pay. But I will say, Crete pays better than most other mileage contracts.
Good luck.
Btw, being leased to Crete was pretty easy. They handle most of all the legal stuff and permits etc. Use their fuel card. You can set up a maintenance account and get a comchek issued on the road for repairs. Fuel and tire discounts.
I had 2 major breakdowns under a load at Crete. Each time, I just informed Crete of the situation and told them where the load was and they got the loads repowered. Didn't chatge me anything like some companies do. It was nice to have the backing of a big company in situations like that.

 

I just used my name with the tax ID since it was just me.

 

I have been reading the other threads as you have suggested and have learned a lot from them. The reason i am picking Crete over several places where i could make more is because of the the new options i do get and the safeguards i get with having a big company backing me. I dont want to plan my loads a week in advance, i dont want to make phone calls, look at schedules, relearn another companies system, and leave somewhere that i know i am comfortable with. I will have the opportunity to pick from a few loads and see which one best suits my hours and direction i want to follow. Like you said, Crete takes care of everything i no longer have the desire to do. I feel i am giving myself the opportunity i want and what i am willing to do for it. I love to drive. Love it. This also gives me my fill of being "in business" again. My wife has a great job and health insurance so i dont pay a dime for it. I'll. Drive as long and hard as the HOS will let me. But i just want to pick a load off the Qualcomm and drive. Leasing on to Crete isnt for everyone, but it fits what i want to do perfectly. I will be OTR 21 days out so i will get the sliding scale mileage where i can play around with that and find what works best for me. Looks like i will pull the trigger around end of May. Till then i am running all i can to stockpile some cash. Please give any advice or criticism that you all can.

 

Experience means nothing you say? When you get sick, do you go to a doctor that just got out of med school, or when your truck breaks down (and it will, they all do some time or other) will you take it to a mechanic that just got out of the best tech school in the nation? How about when you eventually need a lawyer, do you choose the person that just passed the bar, or someone with experience? Same goes with this...homework and research is the part of it, but experience is the best teacher. When Ray Coulter gave his safety meetings, he did his homework and research...but being out there taught you just as much about safety as 10 book educated safety directors.

Speaking of lawyers...what happens if, God forbid, someone takes your hood off at a shipper or truck stop...just because the truck isn't moving doesn't mean the finance company doesn't want their payment. And the other company won't just start handing you money because you have a truck payment and a damaged truck...you have to sue them and force them to pay... Same goes for it when it breaks down. Warranty might fix the truck, but the payments keep rolling along.

When freight rates drop, yes, company drivers sit...but their per mile stays the same, where your pay drops...plus they don't have the same payment on a truck regardless of the pay rate.

As for health insurance, have you priced it as an O/O? What you were paying as a company driver is but a minor portion of the premium. When I got my W2 this year, it listed the company portion of my insurance cost...Poly paid over $7000 for me to have insurance. As a contractor, Schneider may get favorable rates on premiums, but as a contractor, you are responsible for the cost...and thanks to the government, you gotta' have it or pay thru the nose in penalties.

Ranger...it not being a naysayer...it's called trying to keep expectations realistic. I hope he makes it, but if it were that good of a deal, why aren't there 15000 contractors over at Schneider. Remember the old saying, if it seems to good to be true, it probably is.

now I'll shut my mouth and let this go back to being a Crete thread...not a Snackbar thread, or a Schneider lease thread.

 

I is fairly sure owner ops here's at Crete only get one load offer, after they refuse a couple, they lose the deadhead miles to the next load.

 

I'll share my viewpoints, this in no way is me being mean or anything just sharing from making the jump and my option.
Personally I always felt being paid by the mile is a scam to benefit the company not the driver.
Which is one thing when you're a company driver but a totally different ballgame when you're an "owner operator" and paying bills to run your operation.
I don't find it fair if say Crete gets a hot load paying great that you still get paid the same. I don't find it fair you get paid the same driving in Kansas vs the Northeast.
Nor would I personally ever leave my livelihood up to a load planner and dispatcher when I'm footing the bill.
They can pull that BS of saying "there's no loads, sit today we got one for tomorrow" and they say that only because the load for tomorrow is a hot load but wait again you get paid the same.
It's unfair in soo many different ways.
I mean sure you still can make money but you're run still somewhat as a company driver.

For me it's all about %, it's the fair way for both sides in my view.
Since i've been at Schneider I've done loads of 30 miles that paid $524, 43 miles that paid $836, 164 miles that paid $974 also did a load from NC to Chicago on the weekend paying $1.90
That's only possible on percentage and for anyone that doesn't believe I did those loads I can share screenshot of them.
I don't plan a week in advance, usually just a day or two out and there's no phone calls... just point and click on a load and the info gets sent to my truck.
Not saying this is the best place there's positives and negatives everywhere.. most similar would be Landstar but you call brokers and don't have unlimited drop and hook freight to pick from along with terminals and drop lots everywhere.

Though I don't like pay by the mile whole deal Crete does pay better than most.

 

I was told 2 or 3 load offerings. Can an o/o tell us for sure how it works please.