My wife and I are interested in running as a team expediting. We don't know anything about it. We are both in the process of getting our CDL B w/airbrake and Hazmat. I have talked with a couple of people that will lease out trucks. What I don't understand is how you get started as to paperwork. Do you need to setup a business name? HOw do you pay taxes on your income? Workers Comp. Do you pay it??? Do you need accounts to buy fuel. Do you need truck logs?? Where can we find out everything we need to know to do things right the first time.
just getting started
- Thread starter michfan
- Start date
Hi Michfan, I myself am a Pgh fan. Getting on to your post, the best advice anyone on this site can give to you and your wife would be to take some good old fashion, uniterupted time, and read as much of the achives as you can. You will learn everything, and then some about the expediting business.
I'll take a stab at your first few questions. You don't need a business name, but can make one. You'll probably start as a proprietership and can worry about incorporating later if at all. If you lease, your income will be reported on a 1099 miscellaneous income form, which is the equivalent to the W2 I'm sure you are used to. That reports the income, Schedule C reports your deductions, and you'll pay self employment tax. It's really easy to do with all the tax software out now, it walks you right through it. Just keep ALL your receipts that have anything to do with the business- the deductions add up. Might be best to have a pro do your taxes after the first year to see how it is done, then you can go it on your own.
You don't NEED worker's comp unless you hire someone to drive your truck, but can buy it for yourselves if desired. You don't need accounts to buy fuel. If your truck is over 26k gross, the company you lease to will give you IFTA stickers which make you tax exempt at the pump, and you will report your state by state mileage and pay fuel tax accordingly- the company takes care of that for you- you just report the miles. Yes, you will need to do logs if your vehicle is over 10k gross. Get a laptop and use the DDL program (www.driversdailylog.com) it's a free download and almost makes logs fun. Almost.
Feel free to post any other ?'s.
-Weave-
You don't NEED worker's comp unless you hire someone to drive your truck, but can buy it for yourselves if desired. You don't need accounts to buy fuel. If your truck is over 26k gross, the company you lease to will give you IFTA stickers which make you tax exempt at the pump, and you will report your state by state mileage and pay fuel tax accordingly- the company takes care of that for you- you just report the miles. Yes, you will need to do logs if your vehicle is over 10k gross. Get a laptop and use the DDL program (www.driversdailylog.com) it's a free download and almost makes logs fun. Almost.
Feel free to post any other ?'s.-Weave-
Dollarbill
Expert Expediter
Just find the company you wish to lease to--they can answer your questions. Best of luck--you're gonna need it.
Texas Dollarbill said that..................:+
Texas Dollarbill said that..................:+
michfan...i posted this awhile back on the newbies forum, to try and answer your question which seems to pop up frequently on this site for obvious reasons. so here is my take on your question...hope it helps you with your decision.
In this chapter, expediting. We´ll begin with The Game Plan.
By now you´ve sat around and fantisized about going expediting, but you´re not sure. Step one, get on the internet, (this site is a good source) and start collecting company literature. Read everyhting. Step two, go to a truck stop (big one),get more literature, and talk to drivers from the companies you read about, and ask them the questions that you want to know. Step three, call the recruiters, and ask them the same specific questions that you asked the drivers. This process should give you an "idea", of what this business can offer you. You will never get a true picture, because there is none.You will hear good and bad about every aspect of trucking, and every company, from everybody you talk to, because that´s the way it is. There is good and bad in every segment, and every company. Step four, decide on a company, a unit size you want to run, and jump in.
To be sucessful, be willing to work. Trucking is a lifestyle, as well as a career. I´m speaking from 17 years of experience when I say this. For the most part, failures in trucking happen to those that don´t know how to manage time and money, bottom line. I´ve seen it over and over. The guy that wants to be home every weekend, the guy that turns down load after load (we all turn down loads from time to time for various reasons). The truckstop cowboy who spends $50 a day on video machines etc. There are many ways to mismanage.
Be realistic. Very important! If you´re a single driver you can expect to make on average (52 weeks) about $1000-$1200 per week as an owner operator in a D unit. Less revenue, in B and C units, because the mileage rate is lower. If you run team, you should make $2000-$2200. Both of these figures should be take home pay if you´re out there and available. When´expediting is busy, (august to december) you will have weeks doubling these figures and more. But , you will AVERAGE what i´m talking about. If you´re consistently doing better than that running under someone elses authority, you have found it! It won´t get any better than that. Stay there. You know more than most of us.
The economics of it all is that every company charges the same to move frieght. One company may pay a high dollar figure per loaded mile, but by the time you figure in the deadhead, the overhead costs etc. All COMPANIES PAY VIRTUALLY THE SAME, BECAUSE THAT IS THE FIGURE IT TAKES TO MOVE FRIEGHT, PERIOD.
To sum up, the more miles you run the more money you make, the more time you spend at home or doing whatever, the less you make. Very pragmatic. Make up your mind that you´re going to make money, be available and manage. Keep your payments as low as possible when starting out, keep your expenses down, until you see as an owner operator where you are over 6 month period. Also heed the advice of others and drive for someone, to see if it´s for you, first, if your not convinced. Good luck newbies. I think trucking is a good job to have.
In this chapter, expediting. We´ll begin with The Game Plan.
By now you´ve sat around and fantisized about going expediting, but you´re not sure. Step one, get on the internet, (this site is a good source) and start collecting company literature. Read everyhting. Step two, go to a truck stop (big one),get more literature, and talk to drivers from the companies you read about, and ask them the questions that you want to know. Step three, call the recruiters, and ask them the same specific questions that you asked the drivers. This process should give you an "idea", of what this business can offer you. You will never get a true picture, because there is none.You will hear good and bad about every aspect of trucking, and every company, from everybody you talk to, because that´s the way it is. There is good and bad in every segment, and every company. Step four, decide on a company, a unit size you want to run, and jump in.
To be sucessful, be willing to work. Trucking is a lifestyle, as well as a career. I´m speaking from 17 years of experience when I say this. For the most part, failures in trucking happen to those that don´t know how to manage time and money, bottom line. I´ve seen it over and over. The guy that wants to be home every weekend, the guy that turns down load after load (we all turn down loads from time to time for various reasons). The truckstop cowboy who spends $50 a day on video machines etc. There are many ways to mismanage.
Be realistic. Very important! If you´re a single driver you can expect to make on average (52 weeks) about $1000-$1200 per week as an owner operator in a D unit. Less revenue, in B and C units, because the mileage rate is lower. If you run team, you should make $2000-$2200. Both of these figures should be take home pay if you´re out there and available. When´expediting is busy, (august to december) you will have weeks doubling these figures and more. But , you will AVERAGE what i´m talking about. If you´re consistently doing better than that running under someone elses authority, you have found it! It won´t get any better than that. Stay there. You know more than most of us.
The economics of it all is that every company charges the same to move frieght. One company may pay a high dollar figure per loaded mile, but by the time you figure in the deadhead, the overhead costs etc. All COMPANIES PAY VIRTUALLY THE SAME, BECAUSE THAT IS THE FIGURE IT TAKES TO MOVE FRIEGHT, PERIOD.
To sum up, the more miles you run the more money you make, the more time you spend at home or doing whatever, the less you make. Very pragmatic. Make up your mind that you´re going to make money, be available and manage. Keep your payments as low as possible when starting out, keep your expenses down, until you see as an owner operator where you are over 6 month period. Also heed the advice of others and drive for someone, to see if it´s for you, first, if your not convinced. Good luck newbies. I think trucking is a good job to have.
I will also repeat myself on a regular basis about Overdrive's "Partners In Business" manual for owner-operators and small fleet owners. Available at www.overdriveonline.com
To give new O/O's an idea on how to start managing their business.
-Weave-
To give new O/O's an idea on how to start managing their business.
-Weave-
JeffJensen
Moderator Emeritus
To Teacel, Weave, Louixo and everyone,
Sorry I didn't get to respond until now, but THANK YOU!
Michfan asked some questions, and you gentlemen
responded like true professionals with straightforward,
honest answers. Your responses represent what a message
board can be when people are willing to take the time
and answer a prospective expediter's questions with
thoughtful, real world information.
My gratitude extends to all of the visitors and posters
on the Open Forums. As with anything, this group of
message boards are only what we make them, and when
a legitimate question such as the above is answered
with a sincere desire to help, it makes it better f
or all of us.
Thanks again!
Jeff Jensen
Editor
Sorry I didn't get to respond until now, but THANK YOU!
Michfan asked some questions, and you gentlemen
responded like true professionals with straightforward,
honest answers. Your responses represent what a message
board can be when people are willing to take the time
and answer a prospective expediter's questions with
thoughtful, real world information.
My gratitude extends to all of the visitors and posters
on the Open Forums. As with anything, this group of
message boards are only what we make them, and when
a legitimate question such as the above is answered
with a sincere desire to help, it makes it better f
or all of us.
Thanks again!
Jeff Jensen
Editor