Warning all leased O/O

Discussion in 'Ask An Owner Operator' started by PoleCrusher, Jun 8, 2021.

  1. rollin coal

    rollin coal Road Train Member

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    It's about freedom to operate a business as you see fit. Why should anyone be forced to incorporate to run a simple business? If the government revenuers have rules in place that define what a 1099 contractor is then why can't those rules be enforced? I don't understand the need to make more rules and burdens when we already have rules on the books here.
     
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  3. slow.rider

    slow.rider Road Train Member

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    They don't lease the trailer, rather they pay an extra percent for use of yours. So when they pay me, the settlement shows 65% pay for my truck, and a separate page showing another 10% pay for my trailer. If you use their trailer then you don't get that second page.
     
  4. Long FLD

    Long FLD Road Train Member

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    That doesn’t mean Landstar is doing something illegal. Leasing onto a carrier’s authority is a business model that’s been around since before deregulation. It’s the idea that now it’s a problem because they don’t go after people who abuse it. There’s a large chunk of the population that won’t accept responsibility for their choices and the government will never be able to protect them from themselves no matter how many regulations they come up with.

    I’ve owned trucks, trailers, livestock, flipped cars, ran a fairly successful eBay account, all as a sole prop on my SS number. But somehow I’m not a business owner because I’m not incorporated? Give me a break.
     
  5. PoleCrusher

    PoleCrusher Road Train Member

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    The thing is, you won't be able to hire another business to perform work if you're in the same line of business. Even if the business just needs short term help on a project.
     
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  6. nikmirbre

    nikmirbre Road Train Member

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    Landstar does "lease" per se. You can opt to receive an extra %7 for flats for X amount of dollars per week. Its essentialy renting as youll never own the trailer and they take care of all maintenance.
     
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  7. PoleCrusher

    PoleCrusher Road Train Member

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    Exactly right.

    If the problem is 1099 drivers, just take a couple IRS agents, pick a random Craigslist ad, and go in audit the company for employment classification. Once word gets out that their bs isn't going to fly anymore, those companies will either fold or change their model.
     
  8. PoleCrusher

    PoleCrusher Road Train Member

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    Didn't the courts recently uphold AB5?
     
  9. jamespmack

    jamespmack Road Train Member

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    Thats not gonna workout.

    But you can, it's gonna get billed as a sublet. You wouldn't be allowed to profit off it. Just like freight interlining. Its not brokered if you don't profit. Anyone can.

    No there is the next issue, the Co. Won't profit. But its do able.

    I dont have any real answer.
     
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  10. PoleCrusher

    PoleCrusher Road Train Member

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    "Hi we're from the government, we're here to make sure you're being treated fairly. We just passed a law we think you'll just love. You can choose to work for free, or you can choose to not work. Isn't that great, how we're looking out for you?"
     
  11. TheLoadOut

    TheLoadOut Road Train Member

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    For as confusing as all of this we know someone is going to get royally ####ed from it.

    I'm still trying to wrap my head around this scenario...
    A contractor calls a painting company to do so painting. The painting company does not have any employees, only ladders and painting supplies. They in turn call a painting crew company that has of their own men to simply paint. The contractor cuts a check to the painting company for supplying the supplies and finding the crew, and the painting company cuts a check to the painting crew company.
    Assuming that the crew is on a W-2 what is wrong with that scenario?

    Nothing from I can tell.
     
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