small fleet start up

underdog777 · Feb 2, 2011

im starting up a fleet of 2 or 3 cargo vans.Im trying to research what all kinds of forms and documents i will need for business.i plan on giving the drivers 1099 at the end of the year so will i need to have ein ?also what kind of fees and taxes.also do i need to get any business licences from state or federal.i will be leased out to one of the big carriers.i want to have my own business name but being contracted to another company i cant really figure out what all i will need. any info would be great

purgoose10 · Feb 2, 2011

underdog777 said:
im starting up a fleet of 2 or 3 cargo vans.Im trying to research what all kinds of forms and documents i will need for business.i plan on giving the drivers 1099 at the end of the year so will i need to have ein ?also what kind of fees and taxes.also do i need to get any business licences from state or federal.i will be leased out to one of the big carriers.i want to have my own business name but being contracted to another company i cant really figure out what all i will need. any info would be great

If you have the money to start a fleet, the first thing you should have done is get a good CPA and an Attorney. All those questions you asked will be handled by them.

underdog777 · Feb 2, 2011

yes i thought of that just playing the field to see if anyone knows the right way about it .im running my own van know but would like to add 1 maybe 2.and i thought if i put it under a business name if something happens they go after it instead of me.

greg334 · Feb 2, 2011

Who says they won't go after you?

Your liability doesn't end with the business name, it includes your actions as an owner.

I wouldn't even consider getting into this until you have solid legal and financial advice. Have your lawyer look at the problems in relation to your present situation and listen to their advice.

I would not even bother with vans, get trucks and stick to a plan. Vans as mentioned lots of times have very thin margins and drivers will not always stick to your idea how to take care of it.

underdog777 · Feb 2, 2011

i agree probably low profit margin.but im not looking to get rich.i just want to have a few vans kind of as a favor to a friend and put my dad in one.i just dont want to get in trouble with irs on any issue.i could just lease them on with company and roll with it .but i would rather be prepared for the business side.also to [inc] a business ive been told if something was to happen it would be your business to fail not personal credit.also i have no exp in the box trucks could be a good way to go but they also cost a lot more and maintance is a lot higher.so with the min investment side i would stick to cargo vans yes less money to be made but less money invested in case it dont work i would rather lose 23000 for two vans and be able to sell them if i have to and get half my money back.then to buy one box truck for 30000 and that is with a lot of miles and cant get half back if it dont work out

jjoerger · Feb 2, 2011

If you incorporate and establish credit in the businesses name you will still have to guarantee the companies credit. And if the company fails the creditors will come back to you for payment. (Been there, done that, got the t-shirt)
The best thing you can do is a get a good attorney and CPA to set up everything for you. Then if you have the bookkeeping skills you can manage most of it yourself.
Good Luck.

greg334 · Feb 3, 2011

I understand all that, the allure of making money while not working (for some) is just too much but the margin has to be greater than the overall cost and the revenue that you have to produce as a fleet owner has to be at least 20% of the biggest expense you will face as a general rule. If you have engine problems or an accident, the expenses can be overwhelming.

Securing credit is another issue, with a lack of experience and no real professionals guiding you, you may get credit but at a high interest rate if at all.

AND as JJ mentioned, don't be fooled by the Zapper Nevada Corporation crap, there is a lot more liability than people think they would ever face. Just one accident will put you under and a smart lawyer can and will go after you personally and the company at the same time.

If you want to start, get one van and put one driver in it to see what it is like.

purgoose10 · Feb 3, 2011

underdog777 said:
yes i thought of that just playing the field to see if anyone knows the right way about it .im running my own van know but would like to add 1 maybe 2.and i thought if i put it under a business name if something happens they go after it instead of me.

Well about going after you, doesn't matter what kind of insurance you have they will always name you in the suit. The attorney will set up a corp yada, yada, yada and take you from there.
Swift last year lost a suit where a driver drove through a stop sign and killed 4 family members. The lawsuit settlement was 52 million. They appealed, don't know where it is now, but it almost closed their doors. I read that in transport topics.

purgoose10 · Feb 3, 2011

greg334 said:
I understand all that, the allure of making money while not working (for some) is just too much but the margin has to be greater than the overall cost and the revenue that you have to produce as a fleet owner has to be at least 20% of the biggest expense you will face as a general rule. If you have engine problems or an accident, the expenses can be overwhelming.

Securing credit is another issue, with a lack of experience and no real professionals guiding you, you may get credit but at a high interest rate if at all.

AND as JJ mentioned, don't be fooled by the Zapper Nevada Corporation crap, there is a lot more liability than people think they would ever face. Just one accident will put you under and a smart lawyer can and will go after you personally and the company at the same time.

If you want to start, get one van and put one driver in it to see what it is like.

A double Amen to that!

purgoose10 · Feb 3, 2011

I'll ad another 2 cents.

If your driving one van and want two more, it's almost impossible to keep up with the others and yours to. If you have a fleet,( my opinion) you should be a fleet manager. I don't see enough margins in 3 C/V to support another. Ask a fleet owner and he'll probably tell you the same thing.