Question:
The company I'm employed with deals with transloading of steel material. From coils and rebar to plates and beams. I'm a terminal manager with said company. My main tasks are supervising the unloading/loading of railcars and flatbed trailers. I also do the normal everyday office duties along with scheduling delivering appointments for some owner operator's who are leased through a company in Indiana.
The proposition that was presented to me was that I should start my own trucking company, but nothing to large. Three or four owner operator's leased under my authority. I can give them the loads and I'd still be making money. I'd just have my fiance deal with the billing from home and I could still keep my current job.
The questions I have are...
1) When I go about getting my own authority, where are the best places to do so? The best places to receive information? Also, this wouldn't just be hauling for one company, so contract carrier is out of the question.
2) What different types of insurance would I be dealing with? Is it just cargo and liability?
3) Would I have to purchase my own tractor/trailer in order to start this business, or can I strcitly deal with owner operators who will lease under me?
4) Would I have to incorporate the business? Also, would it be better to list my fiance as the owner for any tax breaks?
Thanks in advance for any answers to the aforementioned questions. Any other advice would be greatly appreciated.
I've been in the steel transloading business for 5 years. I'm pretty young but ambitious. I just feel that if I have all of the loads at my job place and I have full advantage of choosing the trucking companies of my choice, why not use my own owner operators?
Thanks,
-Doug

Answer:
I would paste this in the Owner Op's forum. You will most likely get more replies from those who do it.
Owner Operator's Forum

Answer:
Access the Trucking Business Center here at TNet.
Answer:

Oops. Sorry about that.

Will do.

Answer:
Personally I think you have a good plan. I know a few who have their own authority, customers and brokers license but only use O/O's. Some O/O's prefere running under a Brokers authority and insurance because it saves them the exspense.

Answer:
Arrrrrgh, OK. I Feel better.
FYI, YOU will be responsible for the O/O's log books, driver qualification files, drug and alcohol testing, maintenance files, daily vehicle inspection reports, tracking of the roadside inspections to ensure the deficencies are corrected, monitoring of their CDLs to ensure their license is not suspended, training for load securement and any accidents the O/O has in transit. YOU will have to have a minimum of $750,000 of liability insurance and have to acquire drivers YOUR insurance company approves of.
DRUG AND ALCOHOL TESTING:

CDLs:

INSURANCE:

GENERAL RULES:

DRIVER QUALIFICATION FILES:

OPERATION OF A CMV:

PARTS AND ACCESSORIES:

HOURS OF SERVICE:

VEHICLE MAINTENANCE:

The US DOT IS NOT the IRS. The O/Os are the carrier's employees.
When you apply for a US DOT you will have a compliance review within six months of begining operation. This will be done between 8:00 AM and 5:00 PM.
You can apply for your MC and US DOT number on-line at www.fmcsa.dot.gov
The MC number has a $300 application fee. The US DOT number is free.
If you have never drove a truck you are advised to learn the HOS as YOU must monitor the O/O's HOS and ensure they are not running over hours or falsifying their log book. You as the motor carrier will be responsible for establishing and maintaining maintenance files for all vehicles that transport freight for your company.
I would call your local FMCSA office and see about acquiring some of the free educational materials available.
Be safe."If men were angels...No government would be necessary."
51st Federalist Papers
"Nichols' Fourth Law says, "Avoid any action with an unacceptable outcome"

Answer:
Are those coils exempt?202 N Main Street
Summerfield Il 62289
TRUCK PARKING AVAILABLE!

Answer:
No. What makes you think steel coils would be exempt?
Be safe."If men were angels...No government would be necessary."
51st Federalist Papers
"Nichols' Fourth Law says, "Avoid any action with an unacceptable outcome"

Answer:
John Q. you gave me a good laugh. AARRGHHH!! Hahaha.
dstonerjr, you really want to bite into one of the most heavily regulated industries without any experience???!!!!
And pick up most of the heavily fined responsibilties!!!
Your O/Os fines will be 1/10th the size of yours if for example the drug test issues don't go right.
If I was you I would feel whomever "offered" you this bright idea is non too wise. OR does NOT have your best interests at heart.
OH yea and the moneys lousy!!!
Play with aggressive stocks you'll come out better!
Twenty tons of regs and paperwork for what!!! 20% of nothing is....,

Answer:
Since this person already knows what he would be making I'm not sure why anyone one would say there's no money in it. There's alot more money to be made brokering loads with your own customers than any driver will ever see.
As for the rest it's like any business. You have to know what is required to run it. Once you know what the regs are and have created a program that follows them to the letter it should only be a matter of getting the right people to haul for you. Since this person already has them also I couldn't see a problem with it. There's nothing to be a fraid of if you do it right and lots to be gained.

Answer:
I'm not in business but have worked for many small brokers who only deal with their own customers and have no trucks. They just do the brokering. So take my opinionm with a grain of salt.
1) When I go about getting my own authority, where are the best places to do so? The best places to receive information? Also, this wouldn't just be hauling for one company, so contract carrier is out of the question.
John Q gave you the web sites.
2) What different types of insurance would I be dealing with? Is it just cargo and liability?
Bobtail comes to mind also. Visit the insurance forum for the correct answers.
3) Would I have to purchase my own tractor/trailer in order to start this business, or can I strcitly deal with owner operators who will lease under me?
You can use strictly O/O's if you want. Some of the same headaches with legalities but not near as many as owning trucks. I would personally go with O/O's. If you will be delivering to the same places all the time you could flat rate the runs.
4) Would I have to incorporate the business? Also, would it be better to list my fiance as the owner for any tax breaks?
Many small trucking companies I know go LLC for tax and liability reasons. It would be best to see the tax and insurance forums for those answers.

Answer:

Contract carrier refers to each load being contracted individually. A common carrier i.e. Yellow Freight has a tarriff book and a set set of prices from point A to B.

The O/O's will carrier their own bobtail insurance. The liability insurance is mandated by the FMCSR. Freight insurance is mandated by the customer.

O/O's are a difficult group to deal with as at times they don't fully realize the difference between the IRS and DOT regarding records and the CARRIER's responsibility to maintain the records. Small carriers often complain that O/O's have no commitment and come and go regularly. With a high turnover rate business operating cost can skyrocket due to unemployment drug test and having to investigate driver's backgrounds.
Be safe."If men were angels...No government would be necessary."
51st Federalist Papers
"Nichols' Fourth Law says, "Avoid any action with an unacceptable outcome"

Answer:
Actually I have never met a broker who keeps any of those records on O/O's. Don't know what the law is but I have worked for many and my wife was a broker agent also and none of those record have been asked for or kept.

Answer:

Stuffs, we'll go back to the original question

Brokers have no authority to TRANSPORT freight for hire:

An O/O may or may not be an AUTHORIZED motor carrier.
If the person wishes to become a BROKER then the person will have to contract freight to a FOR HIRE MOTOR CARRIER.

A freight broker is not a for-hire motor carrier. A broker cannot allow O/O's to transport freight unless the O/O is a for hire motor carrier with a US DOT and MC number.
Brokers who allow not for hire carriers to transport freight will soon be out-of-business. Whereas, if the freight is stolen, or there is an accident and freight damaged the shipper cannot recoup their losses.
That is why brokers check the FMCSA's web site at SAFER SYS to ensure the US DOT and MC number are valid and the carrier has the required insurance.
The question was, how do I become a motor carrier, not how do I become a broker.
Motor carriers must keep the records listed or face penalties and UNSATISFACTORY safety ratings. Carriers with an UNSATISFACTORY safety rating cannot transport freight.
Be safe."If men were angels...No government would be necessary."
51st Federalist Papers
"Nichols' Fourth Law says, "Avoid any action with an unacceptable outcome"

Answer:
dstonejr
Just become a agent for a truck line already in business, make 7 to 10%, they take care of all the legal part, all you need is a phone, fax and computer. Be in business in a week.