68ghost,
I would be interested in what your reasoning is behind this comment.
As an independent O/O he will have zero asset protection and the costs incorporating, state fees, yearly filing fees and professional fees are going to outweigh any potential tax savings.
How to Find Smaller Trucking Companies For Owner Operators?
Discussion in 'Ask An Owner Operator' started by heysteveh, Aug 31, 2013.
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I have a different perspective. I was also leased to Landstar (for 8 years) and they cancelled my lease for the same reason. I got my own authority (took just over 4 weeks - and there were no holidays) - and I jumped right in. I simply factored all my freight from the get-go so my cash-flow needs were minimal (I needed a cash stash for just a few days of operation till my first few load bills were purchased).
It does take some time to build relationships with brokers but it can be done. There were more than a few Landstar agents I got good freight from, ironically, and several more that I found. It will happen.
I did not incorporate or even bother with an LLC. You certainly can and it might be a good idea but it is not necessary upfront. It depends on your situation. (I did not have assets that could be attached to a law suit, were something to happen and I to be sued, so it was not something I chose to do. As noted by another poster, one has zero asset protection, pretty much, so the expense of incorporating or even creating an LLC was not something for me. YMMV.)landstar8891 and heysteveh Thank this. -
heysteveh Thanks this.
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Thank you for sharing this... it's especially relevant to me since I just arrived at the same conclusion for me and my situation. I applied for my authority on Friday as a sole proprietor and got the numbers on Friday afternoon (not activated yet of course). After reading all the posts on this thread and researching my options out as best I could, I decided that I will probably use a factoring company in the beginning and then wean myself off of that as soon as possible. In the mean time, I applied for and received a great credit card with 0% for 12 months to back me up. I am in process of getting Insurance quotes and so far Progressive is the best deal for me. If I pay them one year up front it saves me over $1000 vs a monthly payment plan AND my favorite part: they will accept my 0% credit card as payment. Since I had my Plates through Landstar, I now have to get set up with new plates through my home State of Arizona. I made a phone call and I will be able to use my 0% credit card as payment. With Landstar they were deducting these two items out of my settlement on a weekly/monthly basis anyway. In effect, I will be financing myself at 0% interest rather then paying interest to someone else. Heck, I wish they would let me buy a trailer on my 0% credit card, I could get a used trailer and finance myself! I am glad that my authority is taking 3-4 weeks because it gives me time to plan out all my details and contact some of the Landstar brokers I know who have already offered to let me run for them. At Landstar we had a fuel program through Comdata where the best deals were usually at T/A & Petro & Sapp Brothers based on "cost plus" pricing. After researching fuel cards it appears NASTC has a fuel card/program that is very similar to this, but it looks like I have to join at a cost of $200-$300 a year (definitely worth it I think). So things are starting to happen!! -
Call Apex Capital in Ft Worth (Google them). They are the factor I used. Their fees are typical and, better, they will issue you an EFS card. Fuel savings are 10-50 cents off/gallon or more (the best deals are at TA/Petro) and the fuel savings I had per month were always more than what it cost to factor my bills - including the costs of overnight mail, transfer fees, etc. Win-win.
heysteveh and landstar8891 Thank this. -
landstar8891 Thanks this. -
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Another is Tucson Transport but I only know the name nothing about them.
I'm also going to be out and about this weekend so I'll keep my eye's open and post any possibles I see. Please stop me if I go over board..Last edited by a moderator: Sep 14, 2013
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