Independent Contractor? Any Thoughts?

[emerlin]

OK, I kinda touched on this before, but...

I'm looking at a company that delivers trucks all over the US and Canada. I got the application today and it says "Independent Contractor." That doesn't really scare me off because I used to sell vacuum cleaners as an IC and made pretty good money.

The job entails picking up the truck at the manufacturer and delivering it to the customer with the transportation company picking up the fuel. Once the truck is delivered I would be on my own. I would have to rent a car or take a plane back to pick up my next delivery. I would also have to stay in motels becuase the trucks don't have sleepers.

I know there are some tax breaks for ICs, and I'm sure there's a way to make money. I'm just a bit nervous about such high expenses.

On the other hand, if I can figure out a way to tow my WRX, I wouldn't have the rental expenses and I'd just sleep in my car on the way back...

Anyway. if anyone has any experience doing this or any ideas that will help me make up my mind, I would appreciate it.

If your comments are going to amount to "Stay away" without giving any reasons, I would politely ask that you keep it to yourself. I need info to make a decision, not someone to make my decision for me.

[-FlyByNight-]

OK, I kinda touched on this before, but...

I'm looking at a company that delivers trucks all over the US and Canada. I got the application today and it says "Independent Contractor." That doesn't really scare me off because I used to sell vacuum cleaners as an IC and made pretty good money.

The job entails picking up the truck at the manufacturer and delivering it to the customer with the transportation company picking up the fuel. Once the truck is delivered I would be on my own. I would have to rent a car or take a plane back to pick up my next delivery. I would also have to stay in motels becuase the trucks don't have sleepers.

I know there are some tax breaks for ICs, and I'm sure there's a way to make money. I'm just a bit nervous about such high expenses.

On the other hand, if I can figure out a way to tow my WRX, I wouldn't have the rental expenses and I'd just sleep in my car on the way back...

Anyway. if anyone has any experience doing this or any ideas that will help me make up my mind, I would appreciate it.

If your comments are going to amount to "Stay away" without giving any reasons, I would politely ask that you keep it to yourself. I need info to make a decision, not someone to make my decision for me.

The one that I know of is Auto Truck Transport Corp. Good luck!

[Useless]

If you are driving a truck from the manufacturer to a dealership, I seriously doubt that the manufacturer, the dealerships, or their respective insurance companies are going to allow you to tow anything with one of their trucks.

As for what they are offering in compensation, I'd be VERY careful about what they are promising, and how intent they are on keeping whatever promises they make you. Personally, this sounds to me like a situation where things might work out for them, with you left holding the bag.

As for the tax credits for I/C's, unless you are actually in a higher tax bracket, then the words "Tax Deductions" can loose their allure in a big hurry. Remember, deductions don't mean that the government is actually paying a deductible expense, but only part of it.

Must say that I'm rather curious about why this type of deal interests you, but that is a matter of your affair!!

BOL2U!!

[Kintama]

Personally, this sounds to me like a situation where things might work out for them, with you left holding the bag.

[Rev.Vassago]

OK, I kinda touched on this before, but...

I'm looking at a company that delivers trucks all over the US and Canada. I got the application today and it says "Independent Contractor." That doesn't really scare me off because I used to sell vacuum cleaners as an IC and made pretty good money.

You would be responsible for ALL taxes, as the company wouldn't take anything out. You would get a 1099 at the end of the year.

You don't mention who is responsible for the insurance. I am guessing, as an IC, that you are at least partially responsible for it.

[AsphaltBound]

OK, I kinda touched on this before, but...

I'm looking at a company that delivers trucks all over the US and Canada.

Be afraid, be very afraid, I had a friend who did that just after he got his CDL, got screwed to the hilt. Had lay overs in motels for days at his expense. He didn't pull a vehicle at first then he thought he could save some $, and the up front $ he had to dish out was barely what his check amounted to. His transportation then back and forth was the biggest expense (and he towed a Bug) was ridiculous to say the least. I posted a Piggyback ? today because a student in our CDL class brought it up. When i looked at the sites that others had given on the post, Yup the exact deal that my friend had gone through. I suppose if you have the upfront capitol to float (loan) the company with no interest it might, might be a good idea. Just my 2 cents. BOL.

[emerlin]

Must say that I'm rather curious about why this type of deal interests you, but that is a matter of your affair!!

BOL2U!!

Well, to be honest, I'm not sure why it interests me. It's something different. It's not that far from where I live compared to a few OTR companies I've applied. I suppose the thought that I'll probably get home more than a time or two a month plays a part.

The only thing that really bugs me is whether or not I can make enough after expenses.

[BanditsCousin]

I spoke to a guy while I was getting a fuel line patched at a Volvo dealership. He said the industray is mainly Union, and company drivers. he ran for for some company out of Texas and was happy. You do have to un-deck the trucks so a cran can take them off.

The reason it would be extremely hard as an o/o, is because he said they pick up the brand new rigs already stacked and they drive to a dealer. They're dispacthed so that they have another load in the destination area or can fly to a hot load.

Leaving your truck behind in another city could happen. He did say he was an IC and flies a LOT. His flights are paid for, but I forgot if cabfare was.

[emerlin]

I wouldn't be an O/O. The company I'm looking at drives the truck from the manufacturer to the end customer.

[WildBob]

emerlin,

I'm a contractor for Bennett Motor Express' Driveaway division and it works for me. It is non-union. There are several things I like about it:

It is truly non-forced dispatch, so it allows me the freedom to pursue my other business interests. Settlements are done on a daily basis, so you don't have to wait to be paid. The money's pretty good...they pay 65% of the linehaul, usually works out to be somewhere between 45-50cpm. I like the fact that I don't generally have to wait long at the shipper or consignee. It's never been more than an hour....not like hauling freight. I also like the fact that I'm driving different vehicles....anything from tractors and straight trucks, to rollbacks, firetrucks, car haulers, mixers, dump trucks, garbage trucks and the occasional crane. Keeps it interesting

I am responsible for fuel, but receive a generous fsc. The last trip I did it was 34cpm. I am responsible for transportation and motels, as well. Most of the trips are single vehicles, so towing is the way to go. I use an Astro van that I can sleep in so I avoid staying in motels. I usually don't stay out longer than 2 or 3 days at a time anyway.

There was some initial expense, mainly the universal hitch and tow bar which was about $500, and, of course the Astrovan, which I already had.

Insurance and plates are paid by the company, although I do have to maintain a $400 escrow account to cover any damage I might cause. I look at that as an incentive to be extra careful. The account is built up by small deductions from each trip until you reach the required amount. Been doing this for 3 years and haven't spent any of it yet. :)

It's like anything, some trips are less profitalbe than others, but overall it's pretty good. If you have any questions, feel free to ask and I'll try to answer.

[classicxl]

are you saying you have to pay for all the fuel you put in the vehicle and do not get that money back?

[AsphaltBound]

emerlin,
I am responsible for fuel, but receive a generous fsc.

Probably and at that point it becomes a business tax deduction for you, in other words floating capitol which equals loaning a big company $ without any revenue for that loan. I know it takes $ to make $, but that is why they can operate at low margins and gain larger profits. It works in their best interest. Smart business people use others hard earned cash to profit on. Still hard for a driver to swallow unless you like loaning your money for free. Still BOL.

[Useless]

Sounds to me like this is a situation that might be a good fit for some, but not others.

Even with the tax deductions and the FSC, and even if the I/C/driver is paid $.50CPM, I still fail to see any economic benefit.

As an I/C, he has to pay self employment taxes of about 15.5%, worker's comp, travel expenses, etc.

I agree with Asphaltbound, it sounds to me like an opportunity to subsidize someone else's business.

[emerlin]

Thanks for the feedback, guys. I'm not really worried about the tax situation since I've been an IC before. Anyway, this is just one option I'm exploring. But it is very tempting.

[Kintama]

are you saying you have to pay for all the fuel you put in the vehicle and do not get that money back?

That's crazy!

[Rev.Vassago]

are you saying you have to pay for all the fuel you put in the vehicle and do not get that money back?

That's crazy!

That is why the person is an IC, and not a company driver. I pay for the fuel in my truck, and don't get that money back - directly.

It sounds fishy, and many of the details have not been shown here.

[Useless]

are you saying you have to pay for all the fuel you put in the vehicle and do not get that money back?

That's crazy!

That is why the person is an IC, and not a company driver. I pay for the fuel in my truck, and don't get that money back - directly.

It sounds fishy, and many of the details have not been shown here.

Therein lies the rub, Rev!!!

You pay to put fuel in YOUR truck; this isn't even his truck that we are talking about!!

[WildBob]

are you saying you have to pay for all the fuel you put in the vehicle and do not get that money back?

That's crazy!

That is why the person is an IC, and not a company driver. I pay for the fuel in my truck, and don't get that money back - directly.

It sounds fishy, and many of the details have not been shown here.

Therein lies the rub, Rev!!!

You pay to put fuel in YOUR truck; this isn't even his truck that we are talking about!!

Rev: Nothing fishy here, just a different aspect of the business that, as Useless said, "might be a good fit for some, but not others". What other details would you like to know? I'll try to answer.

Useless: as far as putting fuel in a truck that I don't own, I kind of see your point, but it all goes out the exhaust stack regardless of who owns the truck, doesn't it?.

[Useless]

Useless: as far as putting fuel in a truck that I don't own, I kind of see your point, but it all goes out the exhaust stack regardless of who owns the truck, doesn't it?.

Sure it does, but if it's blowing out of someone else's exhaust stack, in someone else's truck, then personally speaking, I would rather it be someone else's fuel; hence, someone else should pay for it.

I CAN see why a company would do things this way, and looking at the big picture, i don't wish to judge their motives or merits without all of the facts. I will say that I am skeptical here.

[WildBob]

Useless: as far as putting fuel in a truck that I don't own, I kind of see your point, but it all goes out the exhaust stack regardless of who owns the truck, doesn't it?.

Sure it does, but if it's blowing out of someone else's exhaust stack, in someone else's truck, then personally speaking, I would rather it be someone else's fuel; hence, someone else should pay for it.

I CAN see why a company would do things this way, and looking at the big picture, i don't wish to judge their motives or merits without all of the facts. I will say that I am skeptical here.

I hear ya and understand where you're coming from. Skepticism can be a good thing. Please understand that I'm not trying to sell anything here, just responding to emerlin's post.

My position would be that someone else (the client) IS paying for the fuel. They're just using me as the conduit.