Husband thinking of signing on with a very small company...

make sure it isn't a 1099 pay your own taxes kind of place

 

I would look to see if you felt comfortable with the smaller company. Some of the large carriers have insurance with large deductibles, so it isn't just the smaller companies that may have a high deductible. If the equipment seems to be in good shape and well maintained, then that is a plus for any carrier. I have known some big carriers who skimp on maintenance. Some people prefer working for a mega carrier and others like to work for a company who knows their name. A small carrier will usually be more flexible with drivers while a major carrier is usually rigid on their rules. I suppose the 1099 could be a factor. If you are someone who prefers that others take care of your taxes then a W2 might work better. If you are someone who is responsible and likes to control your own taxes, then a 1099 may work better. Those who pay on a 1099 usually pay a higher wage than those who pay on a W2. It really depends on what you are looking for and where your husband feels comfortable. Remember, every company starts out small.

 

if it is really small company and if the owners wife does all the office work it could be a problem, cash wise in there favor

 

Talk to some drivers currently employed there, see if there's any inside dirt worth knowing.

 

Whats wrong with a 1099?

 

You are responsible for paying all your taxes because your employer is not paying their share.

 

What is the quality of the equipment. Is it well taken care of, if not then they are short on money for repairs which isn't good for him. But also be worried if they are selling him on the truck he is going to be driving more as a status symbol then as the best for his job.

Talk to the other driver's to see how they like working for the company. See if he can catch them away from their yard, at the truck stop where they don't have to worry about the boss over hearing the conversation.

Also he needs to know they are getting their work. If they have some dedicated contracts they should be able to make some money but if it is loadboad they may have too much overhead even with one or two people in the office to pay him decently.

There is nothing wrong with working for a small company. A quality company will likely treat their driver's better than a mega. But you just have to weed out the fly by night organizations. Some of that can be figured out simply by how long they have been in business.

 

Find out if they factor their loads. That is a sure sign they don't have capital to pay drivers with their own funds. Also, if their customers pay slow, and they must factor receivables, it might mean a strong customer base is not strong. Good companies have good paying customers.

Factoring means they are splitting a percentage of profits for faster cash flow needs. Dreams don't pay truck notes and drivers always get the short end.

Make sure they have a strong customer base and have been under the same MC for a good length of time.

Customer base and finances paint a clear picture usually.

Just saying...

 

You also pay all of your SS tax not half and probably aren't covered under workers comp.