Things to consider: Run Your Numbers by: Anonymous
Ace,
Yes, you can start a trucking company and have someone else drive your truck or trucks.
As an owner operator or an owner of a trucking company; you are still the owner and financially responsible. The personal finanical risk depends on how you set up the operation: sole proprietor, partnership, limited liability corporation, corporation. Consult with your accountant or attorney on the best approach to meet your needs.
You can buy a truck and have someone drive it for you as long as the driver has a CDL "A" license for big rigs, have CDL endorsements as needed depending on what you are hauling and can pass a DOT physical. In addition, the driver would have to most likely meet the approval criteria as set forth by your insurance company.
Everything that takes place will be under your name and financial responsibility.
Is it a good idea have someone drive your truck? Many people do it and are successful but there are failures as in any business.
You'll have to run the numbers to decide if it is a good idea for you financially. An average truck runs about 10,000 miles a month. Owner operators average between .90 cents to 1.05 per mile. Trucking companies make more per mile depending on their client base and what they are hauling.
Will the person be a subcontractor (1099) or a company driver for you?
As a company driver, you will have payroll taxes plus any other employee benefits you want to offer to consider when running your financials.
As with any business, plan for disruptions such as your driver quitting or your truck being down for repairs.
Check out this link http://www.ooida.com/Documents/2003_Cost_Ops.pdf
for rough operating costs. Note: The data is three years old but should be good except for gas prices used. You can get a feel for what expenses you'll be undertaking.
Run your numbers, anticipate problems with drivers, and then compare your investment versus investing your money elsewhere. Which gives you the best return for your dollar?
