Finding Drivers

When I hired my first driver I did all the same back-round checks that the big companies do, including the USIS (DAC) report and MVR. They had to pass a physical and drug screen, go through all the same safety training that they go through during orientation at a larger company. Then I road tested them and kept them around here for a few days in case they had problems questions etc.

The biggest mistake I made was hiring a good friend. In the end it cost the friendship simply because we were friends they thought that the company policy didn't apply to them.
The second biggest mistake I made was hiring family, that caused a very nasty divorce, mine, because I hired my (ex) husband and he cost me more than any 4 drivers combined.

After that I just put an ad in the paper and went with my gut feelings. It's not easy nor is is cheap to hire someone the "right way" according to FMCSA regulations, but I decided that I wasn't going to do it half way in case of an audit. The fines are too expensive.
As some of the other post state it has to be kept on a business level, not a personal relationship. That doesn't mean you can't be a good understanding employer, you just have to draw the lines and stick to them.
Have a written company policy that explains everything,including causes for termination, home time, pay, pay periods, detention/holding time, equipment use, idling, vacation, health care, pets, passengers, logs, fuel card, fueling, advances, anything that you can think of that they have to sign along with the 30,60,90 day probationary period document.
Most states (32 of them, I think) are "free will" and it's not really needed but with the amount of lawsuits over wrongful discharge on the rise, it's better to cover all the bases.
Just because you are a small company doesn't mean that you won't get sued. Everything should be in writing and both of you should have copies of any signed documents.

It can be a juggling act to be a good employer and still have a good relationship with your employees. I found that the first 30-60 days they would do everything right, then as they grew familiar with me, and how things worked, they'd slack off and push the limits to see how far they could go on bending the rules. At times it's hard to stick to the rules, but you have to for everyones sake.
Good Luck