How to Find Smaller Trucking Companies For Owner Operators?

Discussion in 'Ask An Owner Operator' started by heysteveh, Aug 31, 2013.

  1. BigBadBill

    BigBadBill Bullishly Optimistic

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    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.
     
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  3. rickybobby

    rickybobby Road Train Member

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    You wouldn't be the first!
     
  4. DrivingForceBehindYou

    DrivingForceBehindYou Medium Load Member

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    oh well just make sure you keep between white lines and you will be fine.
     
  5. klkruger

    klkruger Light Load Member

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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.)
     
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  6. 68Goat

    68Goat Light Load Member

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    BBB, I hear ya. I think it depends on how far one wants to take his or her business. Maybe up front, you are right...But how about down the road? For me it's simple. There is more to the equation of incorporating than possible asset protection and some up front and ongoing costs. The reason I would recommend incorporating is for the life of the business. As any business flourishes, the tax drain becomes substantial. Hopefully, as he progresses or anyone progresses for that matter, they can tap into savings that a corporation will allow under federal tax guidelines. Our health insurance is in our corporate name. Our cars are owned in our corporate name. Our satellite office is owned in our corporate name. Our boat is even owned in our corporate name. What if the goal is turn this into a "more than one truck" operation in the future? It's something we grew into but it all started for me with a long plan and a great accountant. The advantages...I can't begin to tell you how it has helped us. We are at the point now where, after payroll and all expenses are paid we show a decent profit. These company owned items and services allow us to legally improve our lives. To me, running a business without setting up as a corporation is not the right move but I understand your point.
     
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  7. heysteveh

    heysteveh Light Load Member

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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!! :biggrin_255:
     
  8. klkruger

    klkruger Light Load Member

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    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.
     
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  9. Lilbit

    Lilbit Road Train Member

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    The IRS allows you to chose which ever form of tax entity you wish for an LLC; sole proprietorship, partnership, S-corp or full corp. If it's just going to be you and one other person (spouse, whatever), then the partnership option is the best. Changing the tax entity later on is the challenge, but your first selection is a cake walk. Just did it last year. Don't forget your Federal Employer Identification Number. This is for all businesses, not just ones with employees. Free, simple form, and quick too . . . online!

    If you are operating under anything other than your own name, you will need a business checking account. Shop around for the best deals/most locations/features/etc as business accounts are more expensive than personal ones. Read the fine print on all the offers and features available. Some of those features can be pricey.

    Why pay someone to do something you can handle for yourself? The website walks you through what you need to do, and even has it set up where you can apply for your authority online. Most states have online services as well, including LLC registration.
     
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  10. Pilgrim007

    Pilgrim007 Light Load Member

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    Highway distribution in Tucson and possibly a sub office in Phoenix are fairly small and also run a truck School. I also believe they either own or partner with Navajo. I used to know/work with the director of Education when we were both at Sear's. I don't know if he's still there it been a long time. His Name was Dave T.
    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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