Steps to "Lease On" to a company

Discussion in 'Ask An Owner Operator' started by e30rik, Jun 9, 2023.

  1. e30rik

    e30rik Bobtail Member

    Jun 9, 2023
    Hey all, so I've wanted to own a truck for as long as I can remember. I've been driving company for a couple years and feel like I'm ready to give it a shot. I've been doing some homework but most of the stuff I see refers to starting a business or being fully independent. Right now I have no interest in doing that. My goal for now is just to get my feet wet, make a little more money and run a truck that's all mine.

    Assuming I do know which company I'd like to lease on to but don't currently have a truck (I'm looking) what are the steps from the point I buy a truck to pulling my first load for said company?

    From what I've read so far I'll need an EIN number? Do I need to incorporate? When I buy the truck will I get my own plates or use company provided ones? Do I just need bobtail insurance? Basically what do I as the O/O have to do that the company won't take care of?
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  3. Short Fuse EOD

    Short Fuse EOD Road Train Member

    Jul 29, 2015
    You don’t need an EIN unless you electronically file for 2290, which I suggest you do. No you don’t need to incorporate. Some states you don’t have to pay for workman’s comp if you’re a sole proprietor. I mean, it’s not like you’re going to sue yourself. Also being incorporated and not having non-household members in the corporation may not keep you free from liability. Some states if you’re incorporated with your household members, you’re basically set up as a sole proprietor. I do sole proprietor. You will generally need bobtail insurance. You can have your own plates/ IFTA or have company provide. I have done both. Some companies will hold your hand others not so much. I am set up to offer either.Being a member of OOIDA may offer some good advice.
  4. TruckerPete1990

    TruckerPete1990 Road Train Member

    Jul 16, 2012
    Bentonville Arkansas
    I would do more research now is a horrible time to try and start a business. It's a rough market you gotta figure out what ur CPM is. Truck prices are still high and rates are still down with volume still being down and looks like it's going down again... Horrible horrible market
  5. e30rik

    e30rik Bobtail Member

    Jun 9, 2023
    Thanks for the info, I have a few questions for the company anyway so I'll get with them before I do anything.

    I'm aware of the state of things currently and appreciate the warning. I've been saving for a long time and have always been good with money generally. My plan is to either buy the truck outright or at least make a very large down payment and owe no more than a regular car payment. In either case I will have plenty of capital after the truck purchase, at least 20-30k. My thoughts are if I can make it work today then it'll be that much easier when things turn around. The company I'm looking at claims they have the work. If they take care of the business, I can take care of my truck and finances.
    Rideandrepair and Siinman Thank this.
  6. Opus

    Opus Road Train Member

    Dec 18, 2011
    South GA
    Go ahead and file for your EIN, you'll probably need it. And if you don't right now, it doesn't matter because it doesn't expire and you might need it later. I don't think they cost anything. Choose wisely on what you plan to name it, because it doesn't go away.
    I filed for one when I was going to start a home repair business. So I called it, "Homework". Well, many years later I needed a EIN, and so I applied again and they said I already had one, Homework. So I became Homework Trucking.
  7. aus9tin24

    aus9tin24 Bobtail Member

    Aug 13, 2019
    I needed an ein for a business checking account. You don’t need to form an llc but it makes sense for legal protections and for tax savings. If you set yourself up for an s corp you can pay much less in fica taxes.
    Rideandrepair Thanks this.
  8. kemosabi49

    kemosabi49 Trucker Forum STAFF Staff Member

    Jan 13, 2013
    SW Arkansas
    Pretty sure you need an EIN to file the HVUT every year too.
    Rideandrepair Thanks this.
  9. chimbotano

    chimbotano Medium Load Member

    Apr 21, 2013
    "if they take care of the business" yea right! Good luck with that!.
    Catmando Thanks this.
  10. Long FLD

    Long FLD Road Train Member

    Mar 4, 2015
    Do you know for sure that they have their own direct customers? No sense in leasing to someone if they’ll be putting a bunch of broker loads on you.
    Oxbow, chimbotano and Catmando Thank this.
  11. AsphaltFarmer

    AsphaltFarmer Medium Load Member

    Apr 19, 2022
    New Mexico
    I think the limit now is literally one EIN per person per day
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