Partnering as an o/o?

EthanStorm · Sep 22, 2018

SixShooterTransport said: ↑

I’m gonna take the opposite side of this...

A deal like you’re describing could work, but only if you structured it properly from the beginning. There would be two distinct parties involved. Person A fronts the money and gets a return on his investment. Person B puts up no money, but brings industry experience and does the labor. Person B would get paid for his labor, plus earn an ownership stake in the company over time. Depends on what terms you can agree on, but something like 5%, 10%, or whatever per year until you reach your agreed upon ownership stake.

I’ve seen it work beautifully in the restaurant industry, and I’ve also heard plenty of horror stories. It’s risky, but if you either don’t have the ability to save up and start your own company or you’re unwilling to do so for whatever reason, then this could be a possible middle ground for you.

As for where to put the truck to work, I would suggest leasing on with Landstar. You’ll get all the benefits of being an O/O without all the paperwork, headaches, and high costs of getting your own authority. You’ll already have your hands full with the deal you’re trying to do, so keep the trucking part of it simple until you see how it’s gonna work out with your partner.

No matter what you do, you HAVE TO set this up as a corporation. Do not under any circumstances allow yourself to be personally liable by just co-signing on a truck with this other guy. You need the protection of a corporation/LLC. Talk to an accountant and an attorney to see what the best way would be for you to structure it before you get into any serious talks about moving forward.

Good luck
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By George you got it! That's what I'm describing. I would have an ownership stake plus my salary. I know it can be hit or miss which is why I am seriously considering it but crunching numbers at the same time to see if it will be worth it. I really can only be away 1-2 nights a week otherwise it's a no-go. I always thought that companies might not allow a certain type of business set up in order to latch on to their authority. No I will not be a sole proprietor but I need to know what type of set up they allow that will allow us to do our own authority as well as theirs depending on what we decide to do. I will reach out to some O/O that I know but many of them don't know the business aspect. They just get a truck and get going not noticing how much money they are NOT making. It has to make sense. Thanks.

EthanStorm · Sep 22, 2018

Midwest Trucker said: ↑

Partnerships almost NEVER work. If you did this only go under your own authority. This way you can see what it’s all about on his dime. If you partnered and leased on you wouldn’t learn much and wouldn’t make enough to make a partnership work.

If it’s a friend or family prepare to not be friends or family after time runs it’s course.
Either this or balls up and do it on your own.
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How much more is it to go on your own authority?

Ridgeline · Sep 22, 2018

Do what you want, you've been warned. I just bought a trio of trucks that were purchased under this exact scheme. I don't mind buying trucks for 40% of their market value.

Cam Roberts · Sep 22, 2018

Omg what a bad idea lol. Yup, you would get raped

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