How To Start My Own Company With Trucks Under My Authority?

Wrong section......Try the truckers job section.

 

Do you have your own authority? There are many steps to the process . . . Here's a thread that will help walk you through the basics . . . there are some links to some other useful posts in some threads too.

 

Unfortunately, the language of the so-called "owner operator" trucking confuses things here. From what you describe, it appears that you don't really have your own authority but are leased to another carrier that performs most of the responsibilities of DOT carrier authority through a "compliance" department. In reality, this type of "owner-operator" is really more similar to a company driver, except that superior carrier has conveniently evaded much of the insurance risk. So, that carrier is your authority umbrella, as it were, for paperwork and government compliance. Also, the carrier probably provides a convenient package of insurance, IFTA accounting, for which you pay, and they provide complete dispatching because you are not hauling your own trailers.

However, it appears that what you would like to become is an independent owner-operator and expand this into a full independent carrier authority. You also refer vaguely to "connections" with Fedex, UPS, and other companies, but exactly how these are legal contracted relationships evades my understanding.

I'm an independent one-truck carrier who manages all aspects of DOT and state authority, insurance, IFTA, and so on, but also do my own contracts and dispatching. I typically contract my loads with brokers, rather than carriers, although I sometimes will accept another carrier's load if necessary. More rarely, I will contract directly with a shipper. Since I haul my own trailer, I'm not dependent upon another company to furnish the loads for me, and all loads are "live loads". Also, all of my loads are from the spot market because I want the highest priced cargo. Dedicated contracts have the advantage of regular mileage throughout the year, but I'm more interested in maximizing my receipts, not my mileage. When demand and prices are low, I reduce my mileage exposure. When demand is high, I optimize my mileage. I normally try to put the truck/trailer in a region where a shortage of trucks exists (e.g. California or Illinois), and then deliver to a high demand market (New York or Boston).

I try to encourage all truckers to become independent owner-operators like me because my work provides the highest income with the least dependency on abusive carriers and brokers. But, owner-operators up to their eyeballs in truck payments may not like my system. I also find that if I do my own paperwork, I not only save a significant amount of money, I also feel more confident that mistakes will not be made that are essential to independent owner-operator authority.

Now, if you contact me, I can figure out what you need, but I still need to know more about what you do...

 

If you plan on going out on your own with your authority you will need to buy or lease your own trailers. My suggestion would be to first get your authority and trailers and get started with your own trucks before you start looking to lease on others. You will have some bugs to work out first. You will need to decide what you want to pay owner operators and design a lease. OOIDA has a generic one you may be able to copy. You can also go to the fmcsa website to check what you need to include. It will be necessary to set up or join a drug consotrium and put a driver qualifications file on all drivers and owner operators. There will be additional paperwork such as compliance issues, IFTA, finding and booking loads. You will also need to know how you will finance yourself. Owner operators are not likely to want to wait to be paid. You may want to set something up with factors or find brokers or shippers who will pay quickly unless you have the resources to pay owner operators before you are paid. You may also want to set up with a fuel card company. Most owner operators will want to get an advance on a load before hauling it. Those are some issues you will need to decide before soliciting owner operators to lease on to your authority. Many owner operators could be reluctant to lease on to a new carrier. From your post I assume that you will need to get your authority so you will essentially be a new company. Drivers and owner operators will expect to be paid whether you have received payment or not.

 

You mention that you have 5 trucks lease to a CA based company. What you do not mention is where you are based. First off, I'd suggest you read the threads about starting your own company. Every page of them. If you are in CA, I'd suggest you get the notion of independent contractors out of your head and add the full cost of having them as employees in your business plan. Sure, you can do it and lots do but as a business owner, you have to think about future liabilities and that one is coming.

Lastly, I'd HIGHLY recommend you use BigBadBill's recommendation of having $25,000 in the bank for operating capital for every truck and driver you have. And that's after you buy 5 trailers. Yup, $125,000 in cash, in the bank, with no earmarks for it, just to cover payroll, 30 days A/R, weekly fuel bills, etc. Good luck with it.

 

You don't need 25,000 in the bank start with u get you Mc and compliance start running and the rest will fall in slowly but surely there is alot of places to get revenue to grow that your decision

 

O brother!!

 

Just need some duct tape, bailing wire, and a few plastic zip ties and you ready to roll !!!!

 

Don't use duct tape, spring the extra $1 for gorilla tape ...