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 New Trucking Company

Yvette

New Trucking Company
Posted: Sat Feb 26, 2005 10:22:53 PM

I am new to the trucking industry and became interested because a friend of mine purchased his truck and works as an owner/operator. I would like to start a trucking company and have a few questions. 1. I am going to incorporate - what is the best tax classification the company should be under - LLC or S Corp?
2. I will be starting with only one truck that will be owned by the company. WE will have one driver employed by the company. The rest will be hired as owner/operators as carriers. Is this a good idea?
3. How do I go about obtaining contracts with various shippers?

Thanks!

Jake Brake

  

RE: New Trucking Company
Posted: Sun Feb 27, 2005 10:28:11 AM

  

Yvette,
To answer your questions. I can not advise you which classification to aquire because I do not know your financial situation. I suggest contacting your accountant or an accountant for that determination. Starting you company and adding owner operators for expansion is an excellent idea if, I repeat myself if you can find additional owner operators to fill your additional freight. I do have one correctin. They would be independent contractors though, not carriers. Obtaining contracts has always been the roughso to speak. My suggestion is to go door to door or make cold calls and set up a meeting to obtain new business another is thru advertising. You will not need a contract if you are a common carrier. Then you would need a published tariff etc. If you are a contract carrier you will need a contract to haul. Common carrier is by far a more commmon practice. I highly suggest you have gauranteed work before you purchase your equipment or you very well may end up leasing it to a company and becoming an owner operator yourself. If you have any more questions feel free to ask. GOOD LUCK!



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