Profile For Matt

Talk to a CPA about forming a subchapter S corporation or an LLC. It helps offset self employment taxes etc. Used to be if you paid yourself out of the corporation and called it dividends you didn't have to pay social security & medicare taxes.

Also look into an IRP Liceanse (get info from your DMV), it allows you to be registered in only your home state, but do interstate commerce.

We are happy for you if you want to go that route, just be forewarned that it isn't for the faint of heart or the shallow pocketed. This business has a harsh way of bringing on a day of reckoning, just when you least expect it.

I do not want to go that route this early, I couldn't justify risking a piece of my financial house on the idea of a someone else's dream. But, I am looking long term, and I know I do not want to be punching a clock into my later years. No offense to anyone that does, I just know that is not what I want for myself.

I personally know a few O/O's and a couple of them have "failed" (your definition may vary), but they did whatever it was they needed to do, got back out and are doing better than before. One is a very close friend of mine, he's on a reefer run right now from Port Richie through PA paying around $13.00 a mile (if you averaged it out by the mile) but he has his own authority, his broker does him right and he isn't spending his business funds on his personal life. That was a lesson he learned the hard way, and I can't hear enough about apparently (he'll repeat it about once every couple months).

To provide some type of example for anyone following... here's a good video to give a brief understanding. There are many options such as federal and tax exempt state exchanges... Primary and Secondary money markets... etc https://www.youtube.com/watch?v=iAcH892HHFo It is hard to use a broad brush to explain all the ins and outs... that requires personal research but in short. It is better than having money setting in a single savings account. Separating and diversifying the types of investments (mutual funds being short term safe investments), you can maximize your earned interest. Like most things, you will need to find what suits your financial situation the best... it isn't a "one size fits all" thing, but there are many options. I personally recommend mutual funds... but they aren't for everyone. To keep it related to trucking, if you have $20,000 in a savings account for maintenance etc... you will gain by whatever percentage rate your financial institution is paying. By using mutual funds with a portion of your savings (google "ladders" for certified deposits), you can allow yourself more liquid capital than just using standard savings plans. CD's (since Ive brought them up) is also a nice financial tool to use with certain tax advantages as well. However, using them for a business savings plan should be done with caution; again... I'll refer you to "ladders" for a CD holding business capital. Just trying to provide more specifics. I'd be happy to speak with anyone who is considering any of these options; I am not a finance professional... yet I can refer you to a damn good one who will work your dollars hard for you, if need be!

It takes a sort of self discipline, but investing in proven financial instruments should come with relative ease with a little guidance and explanation what your money is doing and how it's doing it.

Hey guys, thanks for the reply's, and I apologize for the poor choice of words or lack thereof. I respect all of your opinions!

I wasn't speaking of factoring, that is essentially selling accounts receivable to a third party to raise some capital... but selling it at a discount. I couldn't vouch for this as I've never used them, can't see the point honestly... but I'm sure their is some niche to certain industries where it could be applied well. I was speaking more on structuring a savings plan; creating capital through money market mutual funds, of course, funded by a portion of your savings. It sounds intimidating to some, but I can honestly state I have had great success in my personal life using mutual funds to leverage against a static income. I am making more on my investments than I do punching the clock as a ACI, PCI, NPCA 3 QC Inspector. Should equipment (depending on your industry) or break down... and they do and is to be expected... having a way to deal with the cost is what seems to burden most people regardless of industry. It is a common theme among young entrepreneurs to well versed men of business. Machines break down and customers will guarantee, the least amount possible. I guess I see it in trucking as I see it elsewhere, the less liquid capital you have available, the higher the odds of failure are. There's not much getting around it. That's what I meant yet conveyed poorly. I do not claim to be saavy in public speaking by any stretch of the imagination, so don't judge me to harshly please. The phrase "super trucker" was a poor choice of words, again... I apologize. I certainly did not mean any disrespect to any of you who have voiced out against L/O, O/O for new drivers. I understand what risk you are trying to convey and do not want to discredit that. My wording seems somewhat formal, but I type with an open mindset. I should have said what Jopa stated... and that would've been, "There seems to be a knee-jerk reaction to O/O and L/O."

Again, thanks for the replies guys... it's the most action I've had since coming to this forum, not the "action" I was wanting though (insert animated smiley faces here)!!

So many are for just promoting company driving, and to hell with running a business it seems. It was stated in another thread that the ownership business side is dismal at nearly a 3% margin...wow, that's why there are no O/O on the road doing well for themselves I guess. I just wanted to say, that keeping expectations realistic and understanding the pitfalls (company drivers, you're included here) then it is easy to understand that no one company is the same, and no one lease is the same, and no one... you get where I'm going here. It's funny, I came here with an idea that this was a honest board, and not taking anything away from respectful people here... but as far as the O/O, L/O goes... they are all sharing the super trucker myths. Fact is, without a constant savings plan, and no understanding of how to leverage financial products to your benefit... you are just playing addition and subtraction with relatively predictable and static sums and differences. There is much that goes into owning any business, and a properly functioning savings is paramount to success. Many former O/O's, L/O's that I have talked to that failed... lost sight of their hands when the dollar signs grew bigger (they lived outside their means and it caught up with them), in effect, ruining their business... or if you heard them talk about it... "they were scammed from the get go" . My response you might ask - "Right right.... of course you were, that's the only possible explanation for your failure."

Hey Pepper, I'm on my last week here at ATDS in Elm Mott TX, and so far our test date is still the 18th. I learned an invaluable tip my second week in terms of shifting... more often than not, you only need to be a couple inches into the working phase of the clutch to perform a smooth shift, so I will second that point of not burying the clutch, at that point you would be into the "clutch/brake" phase of the clutch.

They don't require double clutching, but if you cannot properly float gears, they will to reduce wear on the transmissions lol.... never the less, I am comfortable in saying I have become a double clutch pro haha, but feel at a disadvantage that once I leave with a Trainer after company orientation, I will have to eventually learn to shift all over again... er run the gauntlet of spit talk about granny clutching lol.

Best of luck!

I, too love the information here, but yes, section 14 can be a bit of a shock if you have not been reading the Texas CDL handbook. Good luck on school, I am about to start week 2 tomorrow down here in Laredo, Texas!

Pepper

Thanks Pepper and goodluck to you as well.

First (and foremost), hello to all who took the time to read and/or respond. I have found this site an invaluable asset in my journey into this industry. Namely, the High Road Training Program, so thank you for that! To the topic at hand, (let this serve as an entry of my own personal experience) in Texas, the requirements to attain a Class A learner's permit is to successfully pass two test, the Combination section and the Special requirements section 14 of the Texas CDL study book. This section (14) on Special Requirements is also known as "Commercial Rules" or "CVO" to the DMV. it is not covered in the High Road Training Program and I really just wanted to inform anyone in Texas that they need to study the book for this section. My experience goes along these lines... study study study using the High road Training Program, get to the DMV (first in line after an hour wait from 7am) ace the combination section, and get half way through special requirements before being booted out and asked to come back no earlier than tomorrow to retest. I was upset (to put politely) and felt defeated. My class starts this Monday at ATDS in Elm Mott, Texas which I'm paying for out of pocket. I have my DOT physical card and had 1 day to complete this test if I wanted to have my permit going into school so I don't have to take extra time in school to do that. I studied all night, fell asleep around 4:30 am, woke up at 6:45 am and headed out the door to be the first one in line again. I passed the Special Requirements section and the DMV issued my Class A learner's Permit. Today is Sunday, I start school tomorrow and I am anxious, nervous and excited.

Again, just a head's up to the driver's in Texas that are curious about attaining a Class A permit. I also learned that you will not be allowed to take additional endorsements before attaining your License. I was actually told that, I can pay for and take whatever I want, but after I receive my CDL, I'll have to retest (and re-pay) for the endorsements I want on my license because they were not taken after successfully completing a pretrip and driving examination. So yeah, just a head's up!

btw this Special Requirements section 14, is unique to Texas from what I have been able to gather, so to anyone using the High Road program in Texas, use it as a supplement to the Texas CDL Study Guide, particularly... section 14!

Love the site, and the High Road Program, it has made learning the material a breeze!