Steps to "Lease On" to a company

e30rik · 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?

Short Fuse EOD · Jun 9, 2023

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.

TruckerPete1990 · Jun 10, 2023

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

e30rik · Jun 10, 2023

Short Fuse EOD said: ↑

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

TruckerPete1990 said: ↑

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
Click to expand...

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.

Opus · Jun 10, 2023

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.

aus9tin24 · Jun 10, 2023

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.

kemosabi49 · Jun 10, 2023

Pretty sure you need an EIN to file the HVUT every year too.

chimbotano · Aug 15, 2023

e30rik said: ↑

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.
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"if they take care of the business" yea right! Good luck with that!.

Long FLD · Aug 15, 2023

e30rik said: ↑

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.
Click to expand...

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.

AsphaltFarmer · Aug 15, 2023

Opus said: ↑

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.
Click to expand...

I think the limit now is literally one EIN per person per day

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