Getting Started
Are you Trucking Business Ownership Material?
I'm gettin' into trucking, I'm going to run illegal logs for a few years, make heaps of money and then start my own trucking business and never have to work again.
I've heard this said any number of times throughout my time as driver; this particular nugget came from a man in my CDL theory class several years ago. Oddly enough I never did see him make it through the theory test to the driving test and I have never seen him since.
I would say that even if he did make it through the tests, run illegally for a few years and then start his own company; his ambition, dream and business plan were likely not enough to get him anywhere. Before you start up a trucking business and dig yourself a huge massive hole you can't get out of, you need to decide whether you are really cut out for the job.
So, what qualities are need in a business owner or owners?
I would say that even if he did make it through the tests, run illegally for a few years and then start his own company; his ambition, dream and business plan were likely not enough to get him anywhere. Before you start up a trucking business and dig yourself a huge massive hole you can't get out of, you need to decide whether you are really cut out for the job.
So, what qualities are need in a business owner or owners?
The Dream
I cannot impress upon everyone the key importance of this. Someone in the leadership team has to have a dream and that dream has to be as big as possible. A dream creates shared goals that everyone can work toward and most importantly it gets everyone through the tough times - of which there will be many. A Business Plan Before any paperwork can begin to start a company, you need to have a business plan. Here are some questions you need to ask yourself:
All these and more are questions that you need to ask yourself. Administration It does not have to be the owner or founder of the company, but if they are unable to function in this role, they must have someone who can. It has to be someone reliable that has to have the right kind of mind, character and skills. Administration requires:
These are all a must, but can be divided between leadership roles in the company. Qualifications are not essential, but a business owner needs to understand that you pay a lot more for someone with a qualification. Often times, you can find the right person without a qualification for much less. A Team A group of friends, colleagues and family that are willing to help support you either financially or by being a core part of your company. These can be hard to find because they will go through the tough time like you. Integrity Integrity is the quality of being honest and having strong moral principles or moral uprightness. It creates respect from employees and contractors alike. It helps build strong bonds with customers and business partners. It is a key quality of a good business. Charisma This kind of goes back to the dream. One of the leadership team has to have charisma. The ability to lead others and say the things that need to be said. They are the face of the company. |
Setting up your company:
Filing the Articles of Incorporation
Your articles of Incorporation decide on the basic set up for you company and report them to the federal government. This includes:
You can use a lawyer for this process, but I personally recommend using Legalzoom. They can walk you through the basic steps with both the federal government and the state where your business is based for a very reasonable price. I also added in access to their specialty forms and legal advice to the package I purchased which has already been a huge help. Here is a link to their website: https://www.legalzoom.com/LZWeb/Welcome/Signin.aspx?
Your articles of Incorporation decide on the basic set up for you company and report them to the federal government. This includes:
- Tax Types to be paid;
- Company Bylaws;
- Company Agent for legal paperwork;
- Names company officers and shareholders;
- How many shares and their worth;
- Board Members, voting rules and elections;
- When the corporate year ends;
You can use a lawyer for this process, but I personally recommend using Legalzoom. They can walk you through the basic steps with both the federal government and the state where your business is based for a very reasonable price. I also added in access to their specialty forms and legal advice to the package I purchased which has already been a huge help. Here is a link to their website: https://www.legalzoom.com/LZWeb/Welcome/Signin.aspx?
SS4
Federal Application for an EIN Number. This is the number that identifies your business with the federal government.
Form 2553
- Names the IRS representative to the federal government;
- Reports the companies calendar year;
- Names Shareholders;
State Business Registration
Registers for State Taxes (Including withholdings tax for employees)
Accountant, Accounting Software, Payroll
- You will want to hire an accountant to at least run your annual taxes which can be complicated for a company. Accountants often offer services such as running payroll or just providing the software to do so, training, financial advice, legal advice pertaining to money and other services.
- Once you have an accountant you will want find some accounting software to run your accounts. I use Quickbooks, but I do know other companies that run all their accounts from a spreadsheet program. As soon as you have this sorted, you will want to enter in your chart of accounts. Here is a site that I found incredibly helpful: http://www.accountingcoach.com/chart-of-accounts/explanation/2
- Payroll. Are you going to cut checks or use a payroll service. I use the one my accountant provides and it allows him to keep track of my payroll taxes.
Get your authority or lease on to a larger carrier
You can get your own authority or lease on to a larger carrier such as Prime. For more info on how to set up your authority, click here.
Trucks
- Are you going to lease or buy a truck? There are many companies which can lease from, some of these even provide a lease to own option. You can also get bank financing to help build your credit, but you may need to be in business for at least three months before this becomes an option. Lone Mountain Trucking, Freightliner and Success Leasing are all companies which offer trucks for lease or purchase.
- If you own your own trucks you will need to register (file a UCR) and file form 2290 (Heavy Highway use Tax).
- If you own or lease a truck then the truck must be insured for physical damage and bobtail/deadhead coverage. If you are going to be running under your own authority then you will need to add in Liability and cargo insurance.
Employees and Contractors
- Set up your employee files. For more info and HR and hiring click here. All employed drivers will need workman's comp,. insurance.
- Set up contractor files
Next article: Are you going to run under your own authority?