Need Advice - New dump truck company

What makes you think you will have any chance of doing anything other than going into debt? People who do this full time don't succeed, doing it part time I can never see working....
Either commit fully or drop the idea before you go in debt.

 

hope you know how to turn a wrench.

 

Before you are so quick to jump down the guy's throat, it sounds like he will buy the truck lease it so a company that already has a driver for it. So there might be some upside to it, but I doubt much. Doesn't sound like he will be the one running the truck. OP, sorry I don't have the answer to your question.

 

No you won't get a 1099.

What does it mean 'sub'?

To be legal you have to lease the truck to the relatives company, and charge accordingly.

You have to abide by the laws of the state for the lease so your first stop needs to be with a lawyer who knows what needs to be done.

You will have to base the amount on the base lease charge and the amount of usage.

I don't know what people think, the costs of running a truck and maintain it is not cheap.

 

in gravel trucking, many times company will sub contract other independent company to haul for them.

the company can be there own independant company (not leased) its more like a brokerage arrangement, but its under a subcontract agreement.

 

If he provides the driver, he is leasing the truck from you. If you are providing the driver, you are leasing the driver and truck to him.

This is an esblished practice of how it works legally.

If you do peice meal work, you need to have a contract with him to say he will pay x and you are responsible for y.

If he is handling all the aspects of the management, he is essentially leasing the truck from you.

Your business entity is determined by your situation. If you need to lessen your tax liabilities talk to an accountant who can look at your situation and present you with options.

But being an owner has its liabilities and its responsibilities both. You not being a hands on owner could end up being a nightmare for you if you have issues with the work from bob.

Just one accident and you could be wiped out. The legal fees alone can costs tens of thousands and just because you have an llc or an inc, does not mean you are not held liable on a personal asset level.

And the number one rule in business by the way is never get involved with a relative in a business situation.

 

i would recommend talking to a local tax professional to find out the best structure to file your company under. there can be a lot of variables for what is best.

 

Déjà vu...

Leased my truck out to a company, have made NO money so far.