Running under someone's authority

Discussion in 'Ask An Owner Operator' started by chimbotano, Sep 30, 2013.

  1. Tuzla075

    Tuzla075 Light Load Member

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    10% I do my IFTA, my plates, my bobtail ins, and he takes cargo ins once a month!!
     
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  2. JetTrans

    JetTrans Bobtail Member

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    If I run under another's authority, but I am buying the truck and operating it under their authority, do I still need to get LLC to protect my personal assets from business assets in event of liability issue?
     
  3. G/MAN

    G/MAN Road Train Member

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    That depends on the type of liability you are referring. For instance, if you become involved in an accident and are the driver, you should expect everyone from the carrier to the driver to be named in the lawsuit. An LLC or other corporate structure could save you money with your taxes. I prefer operating under a corporate structure for both the liability as well as the tax benefits. I would check with your attorney or CPA and ask them, based upon your specific situation.
     
  4. JetTrans

    JetTrans Bobtail Member

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    Yes, my question was regarding liability where an accident, etc would be concerned. Thank you for answering the question. I also conferred with one of my mentors who confirmed that obtaining DBA then LLC and operating everything separate from personal entities (i.e. bank, name, etc) would be necessary to prevent any legal liability against personal assets in the case of an accident, etc. This applies when running under someone else's authority even if using their insurance as well. Essentially, the safe route appears to be:

    Keep everything built into its own separate entity (LLC) to prevent any legal action against anything personal (home, money, assets) in the case of an accident, etc, resulting in a lawsuit even if running under another my own authority or another person / company's authority and or insurance. Thank you very much.
     
  5. Cat sdp

    Cat sdp . .

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    If you are a 1 person owner/ operator there is no way to not be liable ....

    In a major accident Your going to be sued as the driver anyways.....

    The only time a LLC or inc helps is IF the accident was caused by a
    mechanical problem that wasn't the drivers fault.. Then the company would be at fault.

    Good luck getting a judge or jury to let you off as the driver after a shyster lawyer shows everyone that you really own/control the whole show.....
     
  6. rabbiporkchop

    rabbiporkchop Road Train Member

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    A friend of mine pays 10% to his buddy for using his dot numbers. It's a very close friend of his though .
     
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  7. JetTrans

    JetTrans Bobtail Member

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    I understand. However, the limited liability corporation regulation prevents legal action against personal assets in a liability situation involving ones LLC business . It protects against intermingling of responsibility between personal assets and business assets in the case of legal liability. That is one of its protective purposes. My intent was to ensure this was still needed to offer this protection even when running under another authority. Thanks for your feedback. I appreciate it.

    http://www.nolo.com/legal-encyclopedia/limited-liability-protection-llcs-a-50-state-guide.html
     
  8. Not_Here_Long

    Not_Here_Long Medium Load Member

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    I thought about letting others lease under my authority and decided against it. One bad driver can put a small carrier out of business. And with economic situation in trucking how much money will a leased truck bring you now days ? a small carrier is becoming a thing of the past either you have one truck or 100 there's really no in between best I can tell.
     
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  9. JetTrans

    JetTrans Bobtail Member

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    I just ran the numbers and spreadsheets with consideration for leasing on KLLM's current plan and it looks like after the majority of identified expenses are paid at current rates with current fuel surcharge the lease will bring me estimated $1100. That said, I am not sure how much it gives them, but I do know the truck note is $2100 a month which is quite high. I have determined it would be better to finance / purchase a used truck myself, with enough put back for eventual repairs sure to be needed, and put it in service through a carrier. That will bring approximately $1600 per week on average based on their numbers and after paying all my required expenses. This sounds like the way to go. However, I do agree and see where one bad driver can ruin it easily for a small fleet owner or small company.
     
  10. allstatedirect23

    allstatedirect23 Bobtail Member

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    Dec 25, 2015
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    When running off someone else's authority(if he's okay with it) can I use a freight factoring company to get paid directly to my account or does he have to get paid first? Then he pays me
     
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