Finally got my own truck

Discussion in 'Ask An Owner Operator' started by BoyWander, Jan 1, 2017.

  1. DUNE-T

    DUNE-T Road Train Member

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    Go on Chicago Craigslist and search for trucking jobs offering. They are all $1700 + per week. Yes, it's 1099, but it isn't cheap as you make it sound to be. A lot of those outfits switch to w2 now, because they can't find drivers.
    I personally hate how Chicago style companies do business (log cheating, double stacking freight, illegal brokering, e.t.c), but nobody has cheap drivers anymore. I can absolutely assure you, that in Eastern European community you won't find anybody making less than $1500 per week now.
    And you can't just simply bring new immigrants over here. It's very very hard to legally immigrate in the US nowadays. The reason you see so many immigrants driving trucks now, because when everything collapsed in 2008, everyone went into trucking and they kept switching. There are no new switchers now. There are no new people coming and it's just as hard for 1099 companies to find drivers, as for legit w2 companies.
    You better put more blame on good old 300lb American boys with 7 grades of education, who do lease purchase with legit trucking companies and get robbed in a fully legit legal way.
     
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  3. DUNE-T

    DUNE-T Road Train Member

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    I think the market is soft right now, because of the trade war. Changes in tarrifs can mess up the whole supply chains, so companies just play it safe at the moment. The freight volume simply dropped sharply, I don't remember this little freight being available since Spring of 2016.
     
  4. mitmaks

    mitmaks Road Train Member

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    Its hard to compete with megas with specialty freight. Stepdeck/flatbed is nothing special anymore. Youve got werner, swift, cr england and other bottom feeders to compete cause they all have step/flatbeds
     
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  5. RaRa

    RaRa Light Load Member

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    I have a few questions if you feel like answering.
    What type of cimcomp did you call before you had a truck and what where the rates? Van reefer flat? How many years experience in the field did you have? What did you tell them on the phone did you act like you had a truck? Did you start out with your own authority?
     
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  6. ReeferOhio

    ReeferOhio Medium Load Member

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    I still think you are focusing on what's actually a small fraction of the market with the illegal operations. You are making as though it is some large out of control issue, when in reality of all the trucks on the road they all operate in a legal manner. To each their own. It's simple supply and demand especially with van freight.

    I run flats, I had about 4 years indirect experience in trucking before I started, I had a excavation company. Of course I acted as though I had a truck already when I talked to them, and yes I've only ever worked for myself. I even got my CDL myself. I've never worked for another trucking company. When I talked to my first customer I had everything set up, whether or not they took me I was starting somewhere. I had a list of local business I knew I'd get one of them. I currently run four trucks, seven trailers, and a very nice list of clients that keeps us busy year round.
     
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  7. TallJoe

    TallJoe Road Train Member

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    In the Chicago Driver Culture, for many, there is a little appreciation of being paid on W-2. That's why it is so easy for the Employers to get away with having them on 1099. I'd even say, that it is the drivers want to keep it that way too, getting illusion of fat checks, perhaps hoping to pay less taxes - they often make such a pre-employment condition : "I'll take care of my own taxes" they say. Some of them, instead of Workers Comp, they purchase its cheaper substitute - Occupational Insurance, which gives them some cover in case of on the job accidents. However, some larger outfits with more than 100 trucks changed it to W2 - partially due to IRS being on their arse. I don't know what the mileage pay is for those on W2 these days. Last time I heard, the standard 1099 OTR pay was 55 c a mile and everybody had been still looking for drivers.
     
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  8. 77fib77

    77fib77 Road Train Member

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    If your 1099 now. You get the 20% tax write off. It's less than social security.
     
  9. Midwest Trucker

    Midwest Trucker Road Train Member

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    Even if JUST talking about 1099 alone, it’s a massive issue. Every major city in the country and likely everywhere in between! Not paying payroll taxes as an employer, nor the 6% workman’s comp means the employer is saving what? Around 9% of his entire payroll? Say he’s got 25 drivers at 60k per year. He’s saving minimum of $135,000 per year. Not to mention you know those drivers aren’t paying their taxes properly on the 1099. LOL there is No way. So I’m thisncase alone fellow trucking companies are being cheated, along with the tax payers in this country who foot the bill and do things right.

    Edit: Not to mention skirting health care laws, at that many employees he would be mandated to require health care which makes his savings probably double the $135,000. So there is $270,000 in savings on a 25 truck fleet. We never even spoke about office staff. I could go on and on how it trickles down. I’ll make 1 point. Backend of office is way more simple if your just 1099. So maybe they get by with 1 accounting person instead of 2? Well that’s one less job created and another 50k in savings. So we’re at 320k.

    I admire your story, I never have worked for another company as well. It’s surprising to me our opinions are so different although I do agree sometimes you gotta just get out of bed and make it happen. Worrying about it can just bring you down but turning a blind eye is not correct either IMO. I think we would agree on a lot maybe just not this. Congrats on everything though. Seriously.

    IRS should nail their butts. If your an S Corp and not paying payroll you’ll be audited in no time. Wish these guys got the same treatment. I prefer to do everything 100% legit because I am building a long term company built on a foundation that’s sturdy. When your legit tho and see people blatantly disrespecting you as a fellow owner by their practices, it can piss a guy off.

    Last thing “I’ll tske care of my taxes myself” Here is the translation “I love 1099 because I can add a bunch of mystery expenses and pay very little in taxes, buy a new Ford power stroke and call it business expense.” lol :] They know the game, are short sighted and IMO unpatriotic by cheating fellow tax payers.
     
    Last edited: Sep 17, 2018
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  10. Lepton1

    Lepton1 Road Train Member

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    True. Many training companies run flats, steps, and drop decks. But as with anything you need to specialize, get freight outside the normal "sticks and bricks". Have your hazmat and tanker endorsements to be able to haul totes. Get 4' tall pipe pins and plenty of rail to rail hardwood 4x4's to haul pipe. There's plenty of ways to specialize in open deck, depending on what you want to invest in for dunnage, securement, and tarps. I know a guy that only hauls propane tanks and I could never compete with him, because his dunnage is set up to cradle those tanks perfectly.
     
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  11. ReeferOhio

    ReeferOhio Medium Load Member

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    I hear you and agree about skirting payroll tax. But I'll say it again that is a fraction of the industry and you're focusing on an item that IMO does not really directly effect your rates as much as you think. I offer 100% paid health care to my drivers (all four of my staff, two took it two didn't) I'll take that write off. Most of the corporations you speak of don't have to offer it because those "1099" outfits don't have enough staff to meet the thresh hold.

    People cheat the system in every industry, I'm not disagreeing with you or that statement at all. My point is It appeared to me he was making the argument that his business is suffering great financial loss because he can't compete with the "1099" outfits. That is not the reason for the failure, not that their is any after some of his responses, it appears he's just complaining. That's just how I interpreted the post.

    Fact is I've actually stopped hauling freight for companies because rates, loaders, load time, or a broker came in and ruined it. I'm not afraid to say no and move on. Make good choices, fight for your business and your success.
     
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