Instant O/O and Load boards

Typically, I think you're out the 1500, BUT, that is also why the companies deduct the cost of the tag from the operator you lease on in a percentage based deal. If you were paying a mileage contract, say .90 + fuel surcharge, you typically cover the cost and assume that risk. The way you cover yourself is in the language of the lease contract and state the operator indebted to you for the cost until you've recouped it. It's also another reason companies require some amount of money, usually 1000, to be held in escrow from the operator by the company. The escrow amount is also deductible from the operators weekly settlement until the escrow amount is reached.

 

also put it in the lease contract that if he quits or is let go before the tag is payed back you have the right to get the remaining amount out of any checks you are still holding on him

 

Outstanding point.

 

To answer most of your questions, why not get someone to send you a preliminary review copy of an existing contract.

In your calculations don't forget to include business owners insurance, general liability insurance, and workers comp insurance. Even when they are not an employee it is possible for them to seek WC from you depending on the jurisdiction of the injury and make sure it will cover occasional employees such as lumpers, people washing your truck, ect. There are a what is called pass through liabilities.

Example: lumper gets hurt on LO's truck, is a contract employee not an employee of the receiver, files against LO, LO doesn't have WC you are next and last in line and on the hook.

I would find an attorney very familiar with this industry to be sure to get all the bases covered, and even then compare your contract to existing contracts.

Be very specific as to when why and how the plate will be returned to you. Unless NC law changed, give him the plate without a valid or enforceable contract and he can use it until he wants to return it.

 

If $1500 is a deal breaker or even a real concern, then this is likely not a good business move.

 

The question of transferability is state specific, but, in NC you should be able to. Best check NC DOT.

If this were to be a permanent move (you stated temporary earlier) might make more sense to take the risk.

Look at it from a different view point: Would you loan this person $5000 to get his business going?

It is in essence what you have proposed to do.