Commercial Insurance Solutions: Just the right size
Founded by Ms. Shelly Benisch around twelve years ago, Commercial Insurance Solutions is a small, independent insurance agency located in the Akron, Ohio area.
Her core clientele now includes truckers and particularly, expediters. She has high praise for the emergency freight haulers and says, "They are intelligent, they have business experience and are a high caliber of people. From an insurance standpoint, this makes them a better risk."
Operating your business as a business
One of the keys to operating your business is your knowledge of Cost-Per-Mile (CPM). You've got to understand what it costs to run your truck.
Knowing the cost-per-mile is essential to running your business profitably. So many owner-operators don't have a clue about what it costs to operate their truck.
In normal operation a quality RigMaster stand-alone generator unit has payback cycle of right at a year.
But equally important is the RigMaster’s incredible ability to change the very nature of the Expedite job itself by keeping the owner operator in a well rested and less stressful environment between the loads.
Operating Entities - Part I
Now that you have made the decision to operate or are currently operating your own trucking company, you have to decide on the type of entity from which to run your company.
Are you operating by yourself or are you going to have a partner? Do you need to be incorporated or does a sole proprietorship meet your needs? What about a limited liability company? These types of entities are available to you.
The importance of bookkeeping
Keeping accurate, organized, records is vital to the success of your business. A lost receipt is a lost deduction and a lost deduction means more of your money paid out in taxes.
Developing good record keeping habits can save you thousands of dollars.
Important new tax law changes
For some of you it is an extreme hardship to gather tax information. If you are one of these people, you should box all the paperwork you have and send it to your tax preparer so they can compile the proper records to prepare a return.
Instead of procrastinating, this will insure the tax return gets done on time and save you the cost of needless penalties, which are not tax deductible and can exceed the cost of the tax preparation.
The Owner-Operator's Best Friend!
The professional expediting owner-operator can count people from different occupational specialties among his friends/business associates; his mechanic, his lawyer, perhaps a helpful person from his carrier. But, there is probably no one who has as great an impact on his business, both short and long term, than his bookkeeper/accountant.
Of course, the bookkeeper performs the typical number-crunching duties for his client - especially tax preparation - but this professional can offer so much more to the independent business person.
It's time to talk taxes
For income you will total all earnings from your settlement statements. If you operate with your own authority you will total all income received for the year from deposits made. Be careful not to include deposits from loans, tax or insurance refunds.
It's important to take the time to total your income so that you can compare your totals with the amounts reported to the IRS on 1099's. You'd be surprised at how many times these totals don't match. You will need to contact your tax preparer for advice on how to handle discrepancies.
Independent Contractor Classification
Worker classification is currently a top audit target of the IRS. Many of you are concerned as to whether your workers are employees or independent contractors. It is important to have them properly classified and that classification can determine whether you need to pay employment taxes or provide health insurance and retirement plans.
Many businesses would rather pay independent contractors than employees to avoid paying payroll taxes and fringe benefits. In fact, many people would rather be independent contractors in order to take advantage of some tax advantages. It can be a win-win situation.
Are you covered? Workers' Comp. and the Expediting owner-operator
Simply put, "Workers' compensation" (WC) is a system of statues enacted by each state that provides medical, lost time and permanent disability benefits for employees hurt in the scope of their employment.
Benefits are determined by the individual states, but coverage typically includes medical expenses, rehabilitation costs, a portion of lost wages, and weekly or lump sum payments for families of workers killed on the job.