new owner operator questions....

Where are you?

 

If you are asking what insurance you need, then you shouldn't be venturing into this.

Do you already drive or even have a CDL?

 

I’d say yes to incorporating. Will this business have one or two owners, it has two employees, if you’re leasing on somewhere; the insurance is probably handled with the carrier. If one owner, one of you will be on payroll for sure and the owner could take draws rather than payroll although, I recommend both to be on an actual payroll.

 

Just be careful with this. Partnerships end friendships. It sounds like a good plan but it's really tough to pull off. I can't think of any of my good friends I would want to try this with.

 

I'm sure you don't want to hear it but Partnerships can be difficult especially with friends if you'd like to remain friends that is.

What happens if one of you decides you don't want to split the work exactly evenly 50/50. What if one of you decides he wants to only work 3 days a week. What if one of your only wants to do one run a day and the other wants to do 3? More money should go into repair fund. More taxes have been incurred. You still split the profit? What if one partner for whatever reason can't continue to work or decides not to or decides that working someplace else is better? What if one partner decides containers do not make enough money and he wants to team up or go do something else with the truck? What do you do with that legal entanglement that you will have?

Who decides what repairs will be made? Is one of you the mechanic? Who makes the decision if one of you decides that you want to buy the most expensive seat on the market for the truck? Or the most expensive stereo? Or chicken lights and Chrome?

What happens if the day runs are not as profitable as the night runs or vice versa? You still split all of the expenses? What if one one of your wives decides to say see you and takes part of what you are earning? What if you discover that your partner likes to run the truck with no oil in it and no water in it has no desire to check it runs flat tires and calls for tow service when simple repairs are very easy on the spot? What if one partner for whatever reason needs money and begins taking Advances out of the bank? What if one partner catches the other one cheating or stealing? What if one partner decides he likes to go golfing a lot and go on vacation a few times a month?

What happens if one partner decides he wants to empty out the bank account or sell the truck out right and go on an extended trip to Bermuda?

I know I know that won't happen with your buddy I just have seen it happen with other people that said no no that won't happen with my buddy...

Generally speaking it's not a good move, especially if you want to remain friends.

Employees are easy to fire... Partners are like trying to fire a wife... Much more complicated.

 

If you marry your partner, it will show that you're committed. Then you'll be ready to haul containers.