So you plan on using your families address, or the po box you claimed to get for insurance as the location where you park your trucks?
Lying about your company location, i.e. where your office is and where the trucks sit when not assigned to a driver is fraud.
And the first wreck one of your drivers are in, the insurance company will find out you've been commiting fraud and deny coverage based on that.
Insurance companies deal with this all the time. What you are wanting isn't some sort of revelation, it why insurance companies have investigators.
Which state should I incorporate in?
Discussion in 'Ask An Owner Operator' started by hsingh_2, Apr 6, 2021.
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Actually I do have a lot of experience on the topic, five operations over three states.
My advice is this, get a lawyer who is adept in corporate and tax laws, let them advise you.
Spend the money to have them give you options and how to not get tangled up with state tax laws. New York has the most aggressive tax criminal investigation and collection system and it isn’t like working with the irs.
and also don’t do a 1099 without using the same model where the driver has control over the work or make then a full employee with benefits, most cheap pos fleet owners who try to squeeze every penny put of the fleet more or less really screw the drivers in the long run.Bean Jr. Thanks this. -
In regards to the accident, I spoke to several agents and they told me that that argument that "insurance companies won't cover claims because you parked your trucks somewhere else" won't really hold up. It is a OTR operation and accidents can happen in any state so that argument is invalid.
I won't be lying to insurance companies either, If I have a NY or NJ driver, I will obviously get insurance based off of that, and that goes for any other state that I find drivers in.Bean Jr. Thanks this. -
Can you elaborate on the 1099 part?
My plan and goal isn't to screw the drivers. I understand that in order to keep drivers and actually run a successful business, not just in trucking, but overall... You need to take care of your team / employees. Obviously being a business owner, the goal is to make as much profit as possible but I am also willing to pay my team members good and give them good benefits later down the road.Bean Jr. Thanks this. -
Many cheap pos owners pay their people as independent contractors and micromanage the piss out of them which steps over the line by telling them what to do and how to do it, a few even punish drivers for thinking independently.
These independents are what are called 1099 workers.
In order for the 1099 to work legally, there has to be a hands off approach (with a few exceptions) and this is where the laziness of the fleet owner comes in - they want to manage the truck and driver. The other part of this is a solid contract for the protection of both parties.
That said, being one type of fleet owner is all about profit while the successful ones are about sustainability, both with a focus on growth and preparing for slow times to maintain the business.Bean Jr. and Midwest Trucker Thank this. -
Move to a business friendly, tax friendly state. Become a member of OOIDA which is a business website for the owner-operator and small fleet owner.
www.OOIDA.com
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