Lease to rent program

If they don't have their own contracted customers, they are screwing you. Don't do it.

 

How do you figure you'll less taxes than you are at Schneider?

 

They can't guarantee you a predetermined amount of revenue per week if they don't have scheduled weekly runs. These are usually dedicated contract runs with prenegotiated rates.

It's more likely that they are instead simply running spot market/loadboard freight with variable rates and unpredictable freight volume/opportunities.

Essentially, these places are 99 percent of the time lying to you. You're better off as a W2 paid company driver. Save up your money over time and learn some about the business here on the forums reading for at least a year then make the move to ownership after you've acquired working capital and knowledge.

Now, I want you to do some math. They claim 2500/week to you. Subtract 950 for truck payment (which is absolutely a rip off), then subtract another 450 for insurance, 250 escrow, 35 ifta and 100 for their admin fees. What are you left with? It doesn't even cover a single day worth of fuel.

You will be turned into an indentured servant. Nothing more than a slave living on a modern-day plantation if you take this, "deal". Again, read the endless amount of information here on the forum to save yourself from being taken advantage of and always do the math.

 

$68k a year for truck payment? Sounds like you're getting hosed on that deal.

 

If your serious about this, personally I would hire a certified accountant to do a risk assessment it will be well worth the money spent, as it will be a lot more costlier if this business venture goes south for you. Bottom line is you've got to work out what your left with after all expenses are deducted this is your take home pay. If its only going to be a few hundred dollars extra compared to just being a company driver I would not even bother going through with it, sure you won't have a boss to answer to as you'll now be your own boss but that's about the only advantage. You will in fact have more worries, as you have to make sure everything is covered by insurance, if you have a break down your responsible for organizing repairs you need to have money in reserve to pay for it which again is something an accountant could help you with. Again I would not even attempt to go O/O unless you have a reserve of cash on hand, so prepare for the worse case scenario if that happens can I cope and recover and continue to drive? If yes then go ahead with the O/O venture, if no then avoid this option at all costs. Bottom line is it is ultimately your decision, just don't let emotions rule your thinking as they say "when emotions are high logic is low" what may appear like some kind of great deal on paper may in fact be a very bad risk. So really focus on doing your due diligence on this deal. All the best future O/O.

 

Apparently, he's got it all worked out. I bet he'll be back here in a few months to report an evil bad carrier for ripping him off like the couple hundred posters before him.

 

Uh, yeah. You’re gonna have to pay income taxes .
One way or another .

you came here and asked for advice .
And you’re going to ignore it because you think you won’t have to pay income taxes on a 1099
The IRS

Be the company driver for a while .
Let the company worry about the fuel costs and tires and maintenance and insurance and breakdowns and repairs and finding the loads etc etc etc .

i know company drivers that have earned $60k already this year on a W-2 . Without working that hard and being home every weekend .

 

Many of these guys listen to the so called "internet gurus" on how they do not pay taxes at all.

eventually when IRS knocks on the door then they realize how foolish the whole internet knowledge is.