Category: Owner Operators

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Owner Operators

How to Become an Owner & Operator With a Prior Bankruptcy

Starting a business after bankruptcy may seem difficult, especially if your business needs credit. Other creditors such as vendors, suppliers, distributors, and property owners may run a credit check or require collateral that you do not have. Bankruptcy does not have to be a death sentence to your future prosperity, though. You have a fresh start, and as an owner or operator of a new venture, you have unlimited possibilities. Do not let bankruptcy determine your destiny. Start your business now.

Incorporate your new business. Form a corporation or limited liability company (LLC) to protect your personal assets in the event that you encounter financial difficulties. Unlike running a business as a sole proprietor, you have legal safeguards with limited liability for your business debts. To form a corporation or LLC, see the Resource box for more information.

File a Doing Business As (DBA) at the county clerk’s office. If you run a business under a name different from yours or your corporate name, you must file a DBA. You can piggyback off the success of your new business if you start another business in the future. Each DBA is a separate business, but you may run those businesses under the same corporation. Therefore, good credit earned from your corporation flows over to the new entities and gives you more to work with when applying for credit and doing business with others.

Apply for a new Employer Identification Number (EIN). Unlike businesses run by a sole proprietorship, Corporations and LLCs are a separate business entity, so you must have an EIN. Under some circumstances, a sole proprietorship must apply for an EIN. In any case, applying for a new EIN gives you a fresh credit file, and separates you from your business. You may need to make changes to your business in order to qualify for a new EIN if you had an EIN previously. Use the Resource box for more information.

Open a business checking account. Most banks require an EIN for business banking, even though you want to use your SSN instead. Some banks require a certified copy of your DBA in order to open one. A business bank account separates your personal finances from your business finances, making it easier to track, budget, and gather information quickly for tax preparation.

Build credit with your new business. Some creditors use the business owner’s personal credit file in addition to the credit file of the business when determining whether to extend credit. Take out a secure credit card and use it for your business needs to build credit. Have your utility payments reported to the credit bureaus so your company can establish a good credit history, so your previous bankruptcy will not have as much influence and overshadow your new business ventures.

Apply for a business license and other required permits. Your city’s business licensing department can give you the information you need regarding zoning requirements and permits needed for your type of business. The location of your business may not allow businesses for your type in that zone, including those who work from home. Permits such as fire, water and air pollution, and signage permits are only some of the types of permits your business needs. After bankruptcy, the last thing you want to do is violate a fundamental responsibility, inching your way into another financial meltdown.

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Lifestyle Owner Operators

Financial Help for Owner Operators

Over the road truck operator-owners are small businessmen just like anyone who runs a small store or service provider. Occasionally, money is scarce, which merits a need to seek financial assistance. Although people generally advise against borrowing money to pay creditors, it can be good business sense to borrow money to make more money. An owner-operator can pursue various avenues, with varying amounts of risk and reward. When seeking financial assistance, however, always remember to have everything in writing. Financials, projections, obligations and receivables are required.

Any business needing cash will probably need to put up collateral for the loan. Of course, the owner-operator has a readily available piece of collateral: the truck. Don’t be too hasty, however, to sign away the truck unless the potential for reward using the financial assistance is almost guaranteed. Without the truck, there is no more business. Also, be hesitant to put up a personal guarantee because this will involve all the assets the owner-operator possesses. It’s a very delicate balance between risk and reward to assign collateral to any loan type.

A quick source for needed money is factoring. Quite simply, the owner-operator sells any receivables to a third party at a reduced rate. The rate is negotiable, but expect it to be significant. The buyer can’t make money if paying too much for your outstanding invoices. Factoring is good because it can raise quick cash to buy diesel fuel or new tires to make a cross-country run that will make the year. The risk is selling an account balance to what is essentially a stranger. Your customer will get bills and requests for payment from someone unknown. You get the money, but you may lose a customer.

A quote loan is a loan on an accepted quote to do business. Farmer’s and merchant banks are great places to seek this type of loan. These types of banks do the loans constantly with farmers: loan against the future sale of the harvest. You’ll be requesting a loan against the future payment of a completed load. Don’t expect a loan for the full amount, but possibly between 25 and 30 percent and a fair interest rate. The loan comes due with the invoice. The loan is due whether the invoice is paid or not.

Leaseback is the same concept as refinancing your house: You get a lease against your truck, the leasing company pays you the difference for the value of the vehicle and you pay over time. The advantage is you can deduct the lease payment from your taxes as an expense, a low interest rate and payment over time. The disadvantage is the leaseback will only be for the market value of the truck less any liens. If the truck is paid for, you might get a decent amount. If it is not paid for, and the existing loan value is high, you might not get back your application fee.

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Lifestyle Owner Operators

How to Reduce Transportation Cost

Transportation is a sizable expense. On average, the cost of driving accounts for 10 to 15 percent of personal income in America. Making the right decisions about car purchases and using public transport can save you big dollars.

Instructions

1

Research carefully if you need to buy car. Pay attention to safety, insurance, gas mileage, registration, repairs and maintenance. Make decisions to buy a car based on the long-term cost, not just the sticker price.
2

Avoid financing your car. A car depreciates substantially over time. It is not an investment. So it does not make much sense financially to borrow money to pay for a car. If you have to buy a car, buy a cheap one that you can afford. Buying a good used car is cost-effective since you pay less for the car and for the insurance. Leasing a car is also not recommended since the cost for leasing often exceeds borrowing money to buy a car.
3

Sell your car if it is too costly to operate due to insurance, gas or costs of repairs or maintenance. Keep the number of cars you own to a minimum.
4

Service your car regularly. This will reduce the cost of repairs or unexpected breakdowns in the long run.
5

Use carpool, bus or train to get to work. Driving during rush hours is not only costly but also unpleasant. Take into account commuting costs when you consider where to live or to work. If you live close to the office, you can bike and walk to work instead.
6

Research parking options before you drive to a certain location. In many places, parking is expensive and difficult to find. You may find a much cheaper parking lot just two blocks away from where you want to get to.

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Lifestyle Owner Operators

How to Find Local Truck Driving Jobs

Trucks play an essential role in the U.S. economy. Therefore, truck drivers have an integral part in transporting goods around the country.

Becoming a truck driver does not mean that you have to be away from home all the time. Companies and businesses rely on these trained professionals to deliver goods and services locally, not only to distant destinations. This makes it possible to work as a truck driver by day and spend time with family and friends after work.

Obtain a commercial driver’s license (CDL), which is a requirement for any type of truck driving job. You must successfully complete a truck driving training program to receive a CDL. Options for training programs include community colleges, private truck driving schools and truck company schools.

Ask for a referral and reference from your training school program. Companies and businesses often post job notices with training programs when they are hiring drivers. Community colleges sometimes offer job placement services for their graduates as well.

Apply at local businesses and companies that use truck drivers. Mail delivery services use drivers for local deliveries. Other businesses to consider are lumber yards, furniture stores, automobile distributors, moving companies and retail businesses.

Make use of the local classifieds. Search the want ad section of the newspaper for truck driving jobs. Place your own “Truck Driver Available” ad as well.

Network with other drivers. Let people know that you are actively pursuing a truck driving job. Ask truck driving friends and acquaintances to keep you informed about possible openings. Local jobs may be obtained through word of mouth.

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Owner Operators

New state laws affect owner-operator

Trucking supported changes affecting owner-operators and workers’ compensation became law last month in Tennessee, while similar legislation will soon become state regulations in Pennsylvania and Maine.

Tennessee’s new law, SB 932, excludes unemployment compensation for leased operators and owner-operators contracted to common carriers while engaged in interstate commerce.

Pennsylvania’s independent contractor definition under workers ‘compensation will broaden Aug. 29 when HB 440 becomes effective. It will allow sole proprietors, partners of partnerships and limited liability company officers to purchase workers’ compensation insurance.

The Maine Motor Truck Association had requested legislation to determine if someone is an independent contractor for purpose of workers’ compensation.

In September, LD 1099 takes effect, which will define Maine contractors through several factors, including if compensation is based on factors directly related to the work performed, such as mileage-based rates. The contractor also substantially must control the means and manner of performing services and be responsible for a significant amount of operating expenses and maintenance.

The sponsor of a California bill to bar owner-operators from working ports ordered the bill, AB 950, to the inactive file on June 2. Assemblyman John Perez made the request for the legislation, which would require port truckers be carrier employees.

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Owner Operators

CDL: A Key to Successful Truck Driving Jobs

There is a wide scope of career in the trucking industries and the trucking companies are looking forward for hiring new professionals in the industry. The doors are opened for truck driver jobs but the most important thing is to make the right career decisions. The CDL or the commercial driving license can be an effective move and first step to get your dream job. The trucking companies are looking towards hiring of the professionals who are properly trained and it saves the cost of the company on training the new drivers. Driving a flatbed truck or other such heavy vehicles involves a lot of risk and it is good if the flatbed drivers have a certified training.

There are many job searches companies in the market which will help in boosting the driver’s employment in its right way. There are many safety measures and precautions required to drive the trucks especially the heavy ones. It is not like driving a car and the driver needs to be very careful. The trucking company is going through a tough phase of shortage of drivers and there is a huge demand for the trained and professional ones. The drivers who are the holders of the CDL or the commercial driving license have an extra advantage as this will make them eligible for the driving of the heavy trucks like flatbed or tankers.

There are truck driver jobs available but the choice is limited for the drivers who are new to the industry. They are not allowed to drive the load which is fragile in nature and other materials which have a high tendency of risks involved. The freight load boards also ought to believe in the drivers which have a long term experience as they want the on time delivery of their loads. In such situation a driver who enters the trucking company with a CDL license will be given preference over the other untrained drivers. Most of the companies try to save the money on the pays of the truckers in order to increase their profit margin.

There are many recruitment and marketing firms which can help the truck drivers get the right job so that they don’t regret their career decisions. But these firms also look for the trained persons who hold a CDL license so that they can do the right justice to the jobs they are given. The loads available may be of various kinds and there are materials which require special handling and caring. In such circumstances it becomes the responsibility of the trucking company to select the right kind of drivers. The truckers should also try to get a job in the company which provides good compensation facilities to the truckers as well as their families to make there future secure. The job firms take care of all these issues on behalf of the drivers who might be misguided by the company and are not able to decide. If you are CDL holder, then there are chances of good career options in trucking industry

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Owner Operators

Semi Truck Leasing: An Alternative to Owner Operator Jobs

There are bundle of truck drivers jobs available and the trucking companies are trying hard to lure the drivers to get into the trucking business. Looking at the profits in the business, many individuals seems to be dissuaded from the driver jobs and are looking at the option of owner operator jobs. The owner operator job will allow them to own their vehicles and work on the term and conditions they wish to. But the owner operated jobs have their own limitations. Owning a truck requires many formalities like the credit, balances and down payments may not be possible for the drivers who are new in the industry.

With the present perspective, the trucking companies have put forth the alternative of leasing trucks to the drivers who have a dream of owning the trucks. There are many feasible options available for the drivers like easy installments, low down payments and many other facilities pertaining to finances. From the point of view of carriers, it is good for the drivers who are challenged with the start up costs or stuck in some credit situation.

There are a number of truck driver jobs which have been switched on with the leasing of the carriers by the drivers. They can always make use of the trucking load boards to keep their truck moving. It is a short cut to the otherwise seeming difficult path of owning the carrier. Different trucking companies have their own terms and conditions but it is surely a benefit for the drivers. Even they help the driver to get the loads available to be hauled.

There is a lack of financial risks in the leasing operating jobs as compared to the owner operator jobs. The trucking companies don’t give fragile freights to the new drivers. If you have leased the carrier, there is an added advantage of carrying the materials you want to. But there are some questions raised on the leasing process by the trucking companies and many drivers have been cheated. The driver advocacy groups have been formulated to fight for the rights of the drivers who have been victimized in the name of leasing opportunities. Owner operated independent drivers association (OOIDA) has stood for the rights of many such drivers and law petitions have been filed in the court.

The issues which have been in the limelight and filed in the lawsuits are like violating the government rules in leasing papers, inability to return the amount kept as a security while leasing and in some serious cases fraud have also been seen. For most of the drivers, the leasing of trucks has much been like a nightmare and they have lost more rather then earning. The lease contracts are often prepared in such a complex manner that they are meant to benefit the carriers rather than the drivers.

But every coin has two facets and the decision cannot be taken only looking at one perspective. There are some drivers who are doing really well while taking up the leasing of the vehicles. There is no database or statistics available which can show the list of successful or unsuccessful drivers. It is totally the discretion of the drivers the way they want to choose.

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Owner Operators

Trucking Industry facing Truck Driver Shortages

The global downturn has seen a sharp decline in the employment graph and there has been an acute shortage of jobs in the past two to three years. Unemployment has emerged as the most acute problems of the present time and is posing challenges to the system. But still in this crisis situation there is an industry which is facing shortage of manpower in the jobs and is seriously looking out for options in recruitment.

There are bundle of truck driver jobs available but the challenge before the trucking companies is to get the right personnel for the job. It is presumed that by the year 2012 there will be an acute shortage of around 40000 driver jobs faced by the trucking companies. There are many reasons for the decline in the number of truck driver jobs including many regulatory laws imposed by the government which gives permission to very few drivers who can actually get a valid trade license.

There is also an option of owner operator job in which an owner of the truck can be hired by a trucking company. It is an advance for the driver also as he can choose the location where he wants to go on his own discretion and work according to the convenience of his time. This way he will get the job also by the trucking company and he will work on his own terms.

Recession has undoubtedly taken most of the industries in its claws and there is an uncertainty looming over the various freight companies as well. There is a growing worry of the business remaining the same as the past times. But this fact can’t affect the matter of the job shortage which is faced by the trucking companies.

The recession hugely cut the jobs of the drivers and the various freight companies also stooped the hiring process. This affected the whole cycle in the chain like the closing of driving schools, people getting less licenses and so on. But the thing which is overlooked is that there will be a huge gap in the demand and supply chain in the coming quarters and times to come. According to federal motor carrier safety administration new law, there will be a cut in the daily working hours of a driver and they will work for 10 hours instead of 11.

There are many load boards in the industry and they have heaps of loads available for the trucking companies. But if the job hours are cut then there will be an overwhelming need of 150000 trucks overnight to lift the loads available on the fleet.

This situation can evolve as a golden opportunity to the qualified and professional truck drivers. There are also owner operator jobs and they will have a greater chance of being recruited by the trucking companies. Looking at the drastic graph of the truck drivers going down, the companies have also tried to catch and have rigorously initiated the process of employing the drivers in the industry.

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Owner Operators

Tips for Truck Drivers to Increase their Mileage

This article will discuss about how you can make your truck run more miles with one gallon of fuel and get more out of your truck driving job. Changing some driving and maintenance methods can be of great help in this regard. Let us take a look what can be done to increase your mpg.

First thing goes with the maintenance of your truck before you plan for your next journey: Maintenance can be of two types required maintenance and preventive maintenance. If you make the habit of preventive maintenance than in maximum number of cases there is no need of required maintenance. This measure helps you to carry out your task more quickly as the maintained trucks performs at its best. The fuel required is less and there are very less chances of you truck breaking down on the road. This will enable making all the deliveries according to your schedules.

If you are a driver of the 18 wheeler, then it is a must that you regularly check the pressure of the tires. Before and in between the journey make this a habit. Since these big trucks carry voluminous loads available therefore the tire pressure plays a vital role in its efficiency. Also make the use of standard gauging equipment for this purpose to make sure that readings are correct.

Now that the maintenance part is covered let us see what components you can add to your truck to make it give more mileage per gallon.Check our loadboard blog page for more owner operator business solutions.Adding an Auxiliary power unit (APU) to provide power for your electrical appliances in the truck can go a long way in saving fuel. When the truck is not running and you need the power to run air-conditioner or an electric kettle then with the use of an APU you do not require your truck engine to run all the time. This one time cost incurred will save your daily maintenance and fuel expenses.Adding fuel additives and lubricating engine from time to time will also make the overall running of the truck smooth thus saving fuel in turn.

The next important step comes is bringing some changes in your driving style. The first thing here is reducing or cutting of the time your engine is idling. This is the most effective way of reducing fuel burn. You can stop your engine at many times when your truck is parked for loading and unloading, talking the dispatch requirements with trucking companies or at times when you are in some queue waiting for your turn. This can be at places like petrol stations, service stations, truck terminals etc.

Other tips include running your vehicle at a constant speed a little below the stated speed limit so that you need not apply excessive brakes to control the truck. Next tips is on the use of gears, practicing correct use of gears and its shifting makes the driving more smooth and thus achieving more fuel efficiency. The gears should be correctly placed as per the required conditions. Use of truck cruise control is yet another strong method to make your truck run effortlessly on the road.Taking this few measures into account and you can easily add a mile or two to your per gallon mileage.

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Owner Operators

Owner Operators Add Life to your Semi Truck with Truck Accessories

Truck accessories are the means which will add comfort and luxury to your routine trucking life. Not only accessorizing your truck will make you feel good and proud of your truck but gives an overall positive outlook to the shipping company and your customers related to your owner operator job. It will demonstrate that your truck is well kept and maintained to take and deliver the job responsibly. This would not require many efforts from your side. The basic décor includes truck painting, chrome accessories and lighting.
Why to Accessorize your Truck:
1. Some of the decoration such as adding LED light to your truck enhances the look of the truck as well as provides safety feature on the road. It takes less power from the battery and gives out bright light. LED lights come in different varieties and can be used anywhere on the truck.
2. The chrome and stainless steel bumpers, exhaust pipes, mirrors etc gives the truck an exciting look and invite more customers who get attracted by its external looks.
3. Inside décor which is not visible from outside such as dashboard, steering, gear knobs etc, will give you a relaxed and happy driving experience.
4. All these are general accessories, these days the semi trucks are coming more customized with the installation of toilets, shower, king size beds and a small kitchenette and appliances like heaters, fans, microwave etc. As the development is taking place in every sphere then why the trucking industry should be left aloof.
5. Not only the new truck but old truck too needs to be accessorized.
Where the truck driver job schedule is so very busy with picking up and delivery of loads, they hardly have time to search the market for the accessory that will fit and suit there truck. Below mentioned are some of the tips on how and where to find the accessories for their truck.
There are companies manufacturing exclusive semi-truck accessories and if you wish to take theirs service to get the chromes suited for your semi-truck then just call them up and give them your VIN number. They can locate your truck and will provide you with the best fit accessories for your truck. Do some online search and see the catalogs of advertisement produced by the chrome companies. One more thing you can do is call up the company and ask to send his customer support people to find out what will be best suitable to give your truck that exciting new look. You can also make use of the chrome company information available on various load boards these days.
An accessorized truck not only makes its own statement but reflects your style class and your passion towards your work. A fashionable touch to the bumper or adding air horn will give new definition to your old truck.