Question:
HI, I am getting out of the military soon and am thinking of starting my own company. I drove OTR for about 7 yrs. and ran regional for about 4yrs. I feel I have a good head on my shoulders,
I have about $25,000 to get this company started, though I don't plan on using it all, maybe 20K is all I want to use. Will this be enough? I have done my homework; $750 to start a S-Corp., $13k dowmpayment, $2500 down on insurance... ect..
Would I be better off leasing a trailer or buying one? I was going to go with a reefer... Anyone think this isn't a smart move?
I haven't signed any paperwork yet because I am not in a hurry, I thought about running for brokers at first till I can get established, then work towards finding a dedicated customer. I have made calls to some companies, but with no truck or company yet to sell them on they have shown little interest in talking to me.
Any helpful advise would be greatly appreciated.
Also, would anyone recomend starting off with a new truck vs used. I have a buddy who is in buisness for himself and he swears by it.. Thanks.

Answer:
First, dont incorporate! You are wasting money, as a one man operation forming your own company isnt worth the effort. Take it from someone who has been there and done it. We have had this discussion several times on here. Go to the Tax Forum and discuss this issue with Russ and take his advice.
Second, why do you want to even own a truck now? Why not be a company driver? The freedom that once was there for an o/o is gone now. Most companies that you lease to, control you as they control the company drivers and without the benefits. But seek Russ' advice in the Tax Forum, I think that he will guide you in the right direction.

Answer:
www.Partners-In-Business.com
You will learn how to figure your Cost Per Mile, start up costs etc. Lots of good info on picking insurance, carriers and financing.
Hate to say it but insurance might put a hitch in your plans. Not enough recent driving time.
I'd suggest starting your investigation with letting insurers,carriers and all Know you dont have any current drive time.
You might find you have to go to work for someone else for at least a year before you buy in. Which might not be a bad thing considering the state of the economy AND the downward spiral of trucking. Nevermind that fuel iwill rise and so far the industry hasnt raised frieght rates to match it. 10s of 1,000s lost their trucks last year.
Every month more trucks are turned back in.
That money is in a safe place for now.
Do through research before someone sells you a bill of rotten goods. Things have really changed in four years!
In answer to your question, you might be better served by going the LLC (limited liability co.)route.
It was best for Me and the wife. Cheaper in Wa. and protected our personal assets and a small tax benefit. And is somewhat simpler than incorperating.
Thanks for your service!
Best of Luck back in the World, TC

Answer:
I will check out the LLC (limited liability co.)
Just thought I would clear up any missconceptsions, I have looked up the insurance thing and I have a little recent experiance. So I don't have to drive for someone else to get re-established.
I know the trucking business is hard right now,and I appreciate everyones insight.I'm not rushing into anything.. which is why I'm asking sooo many questions before I "do the dirty deed"
I'm off to talk to Russ now.. Thanks everyone!-->

Answer:
Without any current experience, I would suggest you do serious homework BEFORE you spend any money on this business.
Right now, insurance companies have lowered the boom and their underwriting is very strict when it comes to "current" experience. Experience from years back, may not get it done.
Good luck.

Answer:
He might even know how LLC's work in Ga. When I formed mine it varied quite abit from state to state on cost and other issues. Don't know about now.
With your cash, Russ and a good financier you are sitting good. With a Smart mechanic(if you arent one but I think you just might be) you can probably steal a gorgeous truck at a auction.
I believe Hoss had a post on auctions and I had some links for him.
Best of Luck, TC
Its a gr8 time to buy in! Tough time to make it though.

Answer:
Take a good look around. There are some real good deals on trucks, both new and used, all over the place. Financing is a bit tight though, but if your credit is decent, this should not be much of a problem. Just as an example, try this out. In the appropriate field, type in the truck you would ideally like to have:
www.truckpaper.com/broadway
It is good that you are doing your homework. I have tried for a long time to get people to do this before making the jump, but still we get many posts from those who decided they knew all they needed to and were now in trouble.
If you are all set on the idea of becoming an O/O, it might be a good idea to start out slow, like possibly leasing onto someone before deciding what sort of trailer to buy for yourself. I don't know a lot about your area for different types of frieght, nor do I know what sort of frieght lanes you like to run. Of course I really don't have a good handle on the time frame for your experience either. Things might have changed from what you knew the last time you were out there. You need to find this out.
You also need to develope a real plan for your self. Figure out what you want, and where you want to be in five years. Then figure out a realistic path to your destination. Luck plays a role in your success, but the smart ones create thier oppertunities as they know where they've been and where they are going. They are also looking around every corner for the next oppertunity.
There are many running around the country waiting for the chance to get ahead to fall in thier lap. I can promise, this almost never happens.
« Without respect for basic rights and objectivity, even a democratic government can be oppressive and tyrannical. »

Answer:
Don't do this without getting back out on the road as a company driver for a while first. That's my advice. Your money will be just as safe and usable six months from now as it is today, and you WILL gain some additional insight with a fresh taste of today's trucking environment.
As posted above -- I'll repeat it again -- a LOT has changed the last few years.
The difference between company driver and owner/operator net in your pocket is very small -- to the point that many (many!) long-time owners have sold their truck and gone to work driving a company truck. This 'dynamic' changed dramatically a couple years ago when fuel spiked and the economy cooled off. Twelve years of super-charged trucking industry growth came to a screeching halt, and the road's now littered with failures. Meanwhile, the large companies swooped-in and took control of large industry segments that used to be dominated by O/Os, providing them with (sometimes) better service and lower cost. They've been able do to this with their advanced load-matching technologies, squeezing more legal miles per truck than ever before.
Many O/Os who survived still decided the additional work/stress/hassle just doesn't produce enough extra money to make it worthwhile anymore.
You'll top $45k driving a company truck.
You'll be hard pressed to top $50k net running your own unit.
And that's a heck of a lot of extra work for just $100 more a week.
Black-box truck recorders are coming - in fact, they're here right now (Werner) - and during the next ten years FMCSA will have have most of the industry using them. This will effectively kill the smaller operators that can't afford to run truly legal HOS -- versus the big companies that match thousands of trucks with available loads to match driver's hours.
But there is still one segment of the industry that could remain lucrative sometime into the future for the smaller O/O. Any sort of highly specialized hauling -- oversize, etc -- where shaving a couple cents per mile isn't the shipper's main concern, still have a bright future, at least for now.
Again, I'd suggest refreshing your memory and updating yourself with the huge changes since you last drove, by hanging with a company job for a while. This will also give you direct exposure to today's driving community, and will help you fine-tune your plans.
You obviously want to jump in and get this going. Normally, that kind of 'spirit' would be a good indicator of the kind of determination and attitude that would predict success. But right now, in today's trucking environment, it might be foolish. (no offense intended, but seriously, things have changed dramatically, and the next few years they're going to change a whole lot more)
Good luck...

Answer:
Thanks again for all the help.. I hear ya when ya say for me to get back on the road and "get my feet wet again". I was thinking the same thing.
Although from talking to truck dealers ( I know they arn't authorities on the subject, and arn't looking out for my best interest when you talk to them..) They are telling me that finding a pre emission truck with low miles and a warrantee are getting scarce. Are they right?
I guess there should be some of those O/O repos hitting the lot, but it does make sence to me when they say they haven't been selling new trucks, with the new emissions.
Is everyone buying up the pre emmission trucks?
I haven't really looked at leasing on to anyone yet, Though I have made a few phone calls, and from talking to the recruiter, he was more than happy to put me in a company truck. I inquired about leasing and he said there would be no problem with that either (based on my work history.. I could start at $.36 mi. as a company driver.... (This was with US Express)
IS US a decent outfit to lease to?? I have all their literature, but don't have a copy of the lease.. Are there any US drivers out there who can throw in their own two cents worth of info??

Answer:
Did you look at the link I posted above? This actually should give you a decent overall picture of the market.
Over on the O/O's forum, we have an occasional poster who sells trucks. I have talked to a few dealers myself lately as I am getting ready to head back out again, (assuming the doctor allows me to.) While there are some decent spot sales, and mostly for these pre-emission engines, overall, it would appear that truck and trailer sales are down, and this means greater buying power for us, assuming you have the ability to finance the equipment.
Have you been over to the O/O's forum? many of these questions have been asked and answered, so a search of the forum might bring you some valuable info and insight.
Check out that site about partners in business site as well. Talk to an accountant. You have much to learn, and relearn, and these are all good places to start. The more informed you are going in, the better the chance for your success.
« Without respect for basic rights and objectivity, even a democratic government can be oppressive and tyrannical. »

Answer:
Gonzo,
Yes, everyone (the big carriers) is buying pre-emmision trucks.
I'm driving a brand new '03 -- we've got about 2500 of them out of our 8,000 trk fleet. The rest are all '02s and a few low-mile '01s.
Werner invested in them so they'd have something to sell YOU in a couple years when we get rid of them. They'll still have their original 500,000 mile warranty.
So you have some time.
Sure, their used truck value will be hitting the high end of recent history, as the supply of pre-emmision trucks eventually dwindles over the next few years.
In fact -- If you HAD to get a truck right now, a very low miles '03 is a good investment. The salesman's right about that part. That's what everyone's trying to do.
But there'll be plenty in the pipeline the next couple years with full 500,000 mile warrenties. They came off the line in record numbers till Octover 1 -- just four weeks ago. We've got 'em piled-up waiting for numbering and prep. The ones that stay with a solo driver will average 150,000 mi per year.
I don't think this overall savings to you in future operating costs -- buying one right now -- is comensurate with your FIRST decision to even do this at all. But of course, that's my prejudice towards getting out there and checking things out as a hired-hand before deciding to buy a truck.
There'll be plenty good deals six months from now, including US's used fleet -- or any large carrier. We're all loaded up on youngest equipment we've probably ever had. And that means there'll be a spike in available used equipment a couple years from now.
.
[This message was edited by Shuffler on October 28, 2002 at 20:27.]

Answer:
But heres some links to auctions.
www.taylorandmartin.com
www.hookup.com
And a links page at these guys,
www.truckerschoice.com
For window shopping right?!
I research the used prices of all the makes to reach a decision on what would work best for me.
For example a year old Pete and say a year old Shaker. What are they worth now and what are they worth in three years. Went with a old Classic and plan it being worthless when its six! But thats what worked for me. Someone else might need to have trade in value. I didnt and have no make preference. Just didnt want to finance alot and wanted small payments. Wasnt happening with a Paccar product unless I went to OLD stuff.
Next time (IF there is a next time)I'm headed to Taylor and Martins and buy a Pete or KW at scrape prices