I watched 3 videos… in order basically… was already set on shipping or trucking. But now I’m positive… with my own authority. Basically… you got have a good calendar. Good at keeping track of stuff. And constantly brushing up on your duties as a owner with authority
Ma’am you are INCREDIBLE! The info you put out, and the way you explain it is PRICELESS!! Please continue to your thing, it helps so many people. THANK YOU!!!
Get your own authority. They take out more than 25%. They take out of your income for many of those expenses. If you learn how to accrue for monthly expenses, breakeven analysis breakdowns etc you can run your business. Great information
Why would anyone lease on to a carrier for 70 to 75% if they dont cover insurance. Thats a rip off. Im not paying someone 30 to 35% just to do paperwork and pay for am ELD. It would strictly only be to offset the insurance cost of a new authority. If they dont insure your truck why would you lease on. Dumb. Id do 85 to 90% and pay my own insurance though the carrier not 70 lol thats ridiculous. Also fuel cards don't get you more savings than the mudflap app which is free. We got fuel for $1,19 off today. With current market rates trucks are averaging $9k gross weekly. That would be $2700 a week at 70% to lease on.
Exactly. I am leased on currently for 7% plus insurance 1200 a month plus 1200 a month trailer lease. I run solo hard-core OTR. Even in this tough economy, I am OK. Not great, because I have a hefty truck payment. One year to go for that. I totally love my Carrier. I love my dispatch and I don't feel alone out here. I have a team that has my back. They have a vested interest in my success. I feel like if I had to do everything I have to do plus what they do for me, my head would explode. I am so thankful for my team!
@Belle that's a low percentage but they are making money off your truck and trailer payment. 7% isn't common because that isn't profitable. Regardless as long as you're happy and making money that's all that matters
@@dcollins4096Exactly! That's the way I see it. I have two trucks, both under my own authority. I do not have a driver...I'm it. I want to put a driver in one of my trucks, but the risks associated with any mishaps just doesn't seem worth it...at least not as a small carrier. I've met so many owner ops that have trash safety scores, high insurance, etc. I'd rather let a company larger than my own take on the liability and I just focus on my equipment. With that said, I'm considering putting on of my trucks under another company's authority and then put a driver in it. The other truck will remain under my authority...but I will be the only driver running under those numbers. Just makes more sense that way starting off. Running multiple trucks under your own numbers starting off can be counter productive. Even with seasoned drivers...shit can and will happen. I trust no ones instinct, judgement better than my own.
If you have a mc number you're not longer an owner operator. An owner operator owns a truck but operates under others authorities. If you have a mc number you're a small carrier. Hence m.c. means motor carrier
My opinion is most companies have dispatchers and I don’t like a minimum wage dispatcher running my company. I got my own numbers cause I don’t believe in force dispatch as a leased on driver
Hello and thank you for making such great video was very well explianed but I think it's a little more responsibility to get own authority but better chance of success because you make all the rules set your company up as you wish as long as everything is up to date and DOT compliance. They have lease on companies that knows you make money so they will keep you in a work stage to keep you making them money. Although you are a lease on O/O you are still an asset for the company. I mean you should be able to have flexibility but believe or not there are some companies that except you to run your own truck as a company driver basically. They will lie and say NO FORCE DISPATCH but, as soon as you don't run the load they want they will make you suffer and wait. It's can be BS to lease on when you really only losing about 30 percent so I think it's definitely worth getting your own authority. It will be a lil rough in the beginning but once you cross that 3 to 6 months of operation you gonna better. There are also some companies that let the owner operator book own loads and sets you as someone with ya own authority without having ya own authority. To me that's ok but still not worth it because you are still getting hit for that 65-85 percent fee... And really when you do the math you will see that u wind up paying more leasing on because some companies are smart they know these trucks make money so they going to take money from you so I think it's best for ya OWN AUTHORITY..... 👍🏾👍🏾✊🏾🙏🏾🙏🏾
I'm leased on to a carrier. I book my own loads. They charge 17% but on top of that it's $250 service fee, $150 trailer use fee weekly plus maintenance fee etc..... I could be making $1000 more a week with my own authority.
Very informative, thank you for your dedication. Just a small adjustment- IFTA can be issued without your own MC & DOT, as long as you have an IRP account. Thank you for your videos. Very helpful information.
I like your approach for comparison purposes, but I'm not sure some of the expense data is fair. If I understood your explanation, you seem to have mixed one time expenses for accounting, taxes, and maintenance (essentially annual and coincidentally due in September for this example) with the other recurring monthly expenses. I think it paints an imbalanced picture.
Hi again Sam :) The video was based on our actual numbers from September. It happened that the LLC and Accounting (that are annual) fell on this month. The goal is to show the raw numbers (true numbers from September in this case). This means that as an owner operator running under their own authority, if these were your September numbers, you would be responsible for 100% of the expenses that fell on that month, and would get 100% of the income. If, however, you were a Lease On operator where you do not have your own authority and run under a carriers authority, for this month of September, you would not be responsible for certain expenses such as the Carrier's accounting fee, the DAT loadboard, the ELD, the Permit (in this case is the EPN program related to the carrier), and the carriers LLC tax. The expenses that I listed are the Carrier's expenses related to running the company, so a leased on owner operator cannot and should never be asked to cover any of these expenses. A Leased On operator is ONLY responsible for expenses directly related to his/her operations (fuel, maintenance, washes, tools, permits for their truck, taxes related to their truck and trailer, insurance, etc). I hope this makes sense!
Great video and I love the content. if you have not already done so, would you please do a video on recommended companies that drivers can lease on to? Also, detailing the pros and cons of doing so? Thanks in advance
I learned something from this video..i never knew that the eld was supposed to be care of the company..the company that i am lease on to charge me like 500 dollars for the eld....
I loved how you broke this down so well I have only be trucking for 4 months 😂I have a longggggg way to go before I can become a owner operator but it was always my dream and I didn’t know what the differences between lease owner operator, and being completely on your own owner operator Thankyou so much and your right honestly if you know the game you been trucking for a while it’s either stay company driver or go completely on your own there is no point in having 1 foot in the door 1 foot out with lease purchase owner operator just go and be on your own and get all your money
YOU ARE THE BEST!!!!! From now on, I go to you first. So refreshing to have it explained in "business language" with accurate line-item responsibilities as a comparison. One thing, however, that you did not discuss, and I was wondering if you had a "next level" video with tax, equipment ownership depreciation amortization vs. lease write-off deductions as it relates to the income side, IRS, etc. Prior experience: leases were 100% deductible and equipment purchases went under a depreciation schedule. That will have an impact on the $26k vs $20k figure, or will it? When leasing, how long are the terms, interest rate, equipment pricing, etc. Is it a balloon payment at the end? I realize every program will be different and I am currently conducting all of the due diligence to make the appropriate decision for my situation. Also, will a Lease Program allow the individual to sign obo a LLC or does it have to be attached to an individual?
I like the approach but $2450 a month for an accountant is way to expensive for a one truck operation. $3053 for maintenance is only reasonable if the truck is older. I'd also like to point out the leased on operator would most likely be an llc.
Miranda, I just want Thank You for such an outstanding video! I really appreciated the financial breakdown. Since you didn't include it, can you also do another video on retirement plans, workers comp insurance and SSA as it relates to this business? I'm currently a company driver today (w/ 2yrs exp) and trying to educate myself on different aspects of the business and learning about the "Owner Op" side of things.
I'm actually on that fence you were talking about on getting my authority. I currently have 3 trucks and have them leased on. I do not drive any longer due to a shoulder injury so I have drivers for them. What always holds me back is the cargo insurance and the unknowns. Insurance is expensive so my fear is something will happen to a truck(breakdown, loss driver, etc) and I'm still responsible for that premium. What are your thoughts on this? You may be the determining factor on what I do!! No pressure lol
And I actually have a pretty good deal where I'm leased on. They take 20% plus I get use of their trailers for nothing other than maintenance if needed.
First time watching you and it makes since I love your video. You should do a video on the different fuel card company, insurance, and a Freight factoring company that will be awesome❤ tag me so I can watch them
Fuel cost. I’ve heard of smaller drayage operations where they split the fuel cost with the O/O. What are your thoughts on doing this in an OTR operation? I imagine a lot of O/O don’t like the idea of bearing 100% of the fuel at a 75/25 split. Thanks for the awesome content.
I’m curious why you would want O/O that have their own authority? Does that conflict with your business? Wouldn’t they have access to the same load board you do or do you have your own loads that you dispatch out rather than relying on a job board? Trying to figure out the whole authority vs lease on thing.
Love this question! Yes absolutely, an owner operator with their own authority becomes a competitor on the loadboard BUT I strongly believe that people who are interested in owning their own business should eventually truly own their business. Leasing on means that the carrier still provides you with those loads for the most part. An owner operator with their own authority have complete control over their loads. Plus, under your own authority you make more money. Is it counterintuitive for me as a carrier? Maybe. But the goal of this channel is transparency and saying that “as a lease on you will make as much as an own authority” is simply a lie for the most part :)
I'm thinking about getting a full maintenance lease. Do I find a company first or lease the truck first? Do I need to register a business first? What is order I need to go through to start?
I’ve learnt so much from this video. I’ve always wondered how the breakdown across the board works. I’ve learnt a lot. I’d love to do work with your business. Do you dispatch for and lease on sprinter vans? I’m thinking of getting one then upgrade to a box truck.
I've been pondering this for two years. I went to CDL school two years ago. I will buy a truck (Cash) and couldn't figure out what was best for this newbie. This has helped so much.
WOW... You are awesome. Thank you so much for all your information and sharing your knowledge. I was kinda confused on how to go about this and you made it so clear.
Hi Miranda. Can I own a company, purchase equipment, hire drivers, and then lease on unto someone else's authority? Or I need to personally driver the truck?
Love your channel and you! My question is referring to the accountant .. I realize as a self employed person taxes will have to be paid quarterly, but is that amount correct for monthly to the accountant just for doing your taxes? Assuming it was a a one or two truck owner operator?
As a lease on operator I know I would have to cover insurance on my truck as a bobtail or bobtail liability but who pays for the cargo insurance if I'm using their trailer and they are leasing it to me for $125 a week.
Any insurance is part of your responsibility. I believe the insurance package will include cargo. Update: I saw she answered this question elsewhere. It does not change the fact that you will pay for it! "If you are leased on to a carrier that pays you 75% and takes the other 25%, they will provide you with liability insurance and cargo insurance. That cost, however, will be deducted from your paycheck. So if insurance for your truck and trailer costs the carrier $1,079 per month, when you get paid, that $1,079 is deducted from your paycheck. In essence, you are paying for your own insurance. Hope this answers your question!"
I'm currently leased on to a major O/O company (*️⃣) that i pay 35% per load. I have been thinking of getting my own numbers but wasn't sure if it would be worth the frustration.... this is the exact info I've been searching for to help in my decision. THANK YOU! new sub
Sure i can pull your load!!! After I deliver it i will tell you how much you owe me, We take cash or Card............. It is no different than when you take a Taxi Cab, the driver drops you off then tells you how much you owe, then you PAY HIM.
Im doing some research for a project. What are some of the biggest operational headaches you guys deal with daily? Ive heard BOL generation, and sending invoices is a headache.
Getting the loads starting out as new authority is getting more difficult, not bashing the vid at all. You mentioned, start up program at your company. at the end, what is that exactly?
Ok so, what if I wanted to Get an MC Authority But won't be Purchasing an actual Truck? How would Getting Insurance and filings work? Since I don't have an actual Truck?
Hi again Miranda question on this topic as a Freight dispatcher how much I can charge a future owner operator to setup his/her business. How much would you offer your service to them.
I had a question for you I watched one of your videos about getting your MC your. And all that good stuff so for all this to process and be rolling down the road and working takes about 90 days for it to go through or can you work while in the process of receiving some of the stickers or how does it work
Hi, thank you for this video explaining everything. I wish I knew about your program before I started because I’m in a mess right now. I would like to talk to you about my situation. Do you have consultations available?
You are a GEM! You just answered so many of my questions. I recently retired out of 29 years of service. and made the decision to buy me truck. I have driven for companies for six years, and drove almost anything and everything Uncle Sam has. However; this new adventure was already driving me a little nuts, because every time I turned around, someone was reaching their hands in my pockets for this tax and that regulation and so on. I love the way you explain things, and I am looking forward to checking out all your videos. Thanks so much.
If I lease onto a company but I want to keep my own authority active, is there anyway to do that? I was hoping I could put bobtail insurance on my truck while I’m trying out this new company. Also, if I want to go back to my authority after freezing it, will my experience start over at zero months when i try to book a load ? I have 6 months with my MC now.
@@tobyobie1 I found out that brokers look for uninterrupted time with authority so I didn’t do it. The only way to keep authority active is by having more than one truck . You can keep Insurance and authority running on the other truck . Also, some companies like Landstar will let you use your own authority but you get zero benefits . No tire or fuel discounts. All you get is access to their loadboard. They are very short on the phone as soon as you say that you want to keep your own authority. They treated me like crap when I called. I called twice hoping to get a nicer person. No luck yet.
Lots of GREAT drivers...but absolutely no skills at running administrative part of a business. That's why driver's lease on. As long as the numbers work for you....go for it.
I’ll be honest. I’ve been leased to the same company for the last 8 years and I would have been better off running my own authority. They over charge for everything and give no fuel discounts at all. After I get done adding up all the numbers I’m broke and reporting no income without any funny number tricks. There have been times I’ve done well but just as many times I could have done better if it weren’t for things like paying 3k for my registration when the actual cost is $1900. That’s just one example. I’m not happy at all these days and I’m on my way to Chicago to shove their trailer down their throats.
I read that unless u have more than one truck there’s no need to have your own authority…is that true..in Michigan ins is 30000 for a year 5000 down 2300 a month