New O/O With Banking Question

Because getting on the road as an O/O is so time consuming and difficult. People know basically how they will do this and it's one of the last things to think about. It's much harder to shop out a truck, trailer, insurance and of course deal with the FMCSA who wants 1.5 kidneys to let you haul a load down the road. It's taken me almost a month get everything together being on the phone an average of probably 2 hours a day. I have a great relationship with a local bank so I know that part will happen when it needs to.

I still haven't hauled a load but am sitting here beating my head against the bulkhead trying to get out on a Saturday.

 

Taxes should be filled every quarter.

 

I understand where you are coming from but the thing that i guess is that when people want to become owners, they don't get the fact that it is a business and learning things like how to structure the business should be done before even considering the truck. It is the foundation to success and actually makes it easier than fixing the problem later or failing.

Trucks are easy to find, trailers are easy to find ... OK insurance is getting out of hand and so is financing.

BUT learning that you need to separate monies in the bank and all of the paying the bills first, should come first.

I also tell people have capital, don't do this on the cheap.

Why?

Because some people get so desperate to get on the road, they miss something, or worst yet they get on the road and something happens that they are off the road quickly with bills pilling up so then they take anything that just pays the bills.

 

Before you get too far down this road, do the following.

Find and retain an accountant, CPA and Enrolled agent is best.

Make an appointment with them and get ready to ask lots of questions. What are the advantages of X and Y and all the other things you have thought of and maybe some you have not, but they will.

Find a good business attorny. Do the same as above.

As to going into business with family. Back to the attorney, your going to need partnership documents and a number of other things.

Next to Last item. Does your household have a solid 6 months of cash in the bank to pay for all the household bills, 9 month to a year is better. If no, stop, your looking at a very difficult time ahead.

Another next to las item. Speaking of cash, When leased to a company, it can take 30 to 60 days and as much as 120 days for cash flow in the business to level out and start covering expenses. Is the estimated operating cash available for that time.

And maybe the actual last item.
One the partnership is up and running, its back to cash.
Funds are going to be needed to cover operating expenses. It can take 30 to 90 days for some places to pay. Some even longer. During that time, the bills will come is and need to be paid. Figure at least 6 months operating cost, better to have more.

Final item
The cost of the accountant and attorney are business expenses.
They are worth every penny you spend. They will save you more than they cost. May not seem like it at first, but it will

 

Yeah but you need to talk to an accountant.