Business Considerations for Owner Operators
Part 4: Business considerations for owner operators
As an owner operator, you will need to form a legal business structure, file for taxes, and protect your assets appropriately. Consulting professionals in these areas is an important and worthwhile aspect of running your business.
You will also need to ensure you are following federal, state, and local laws. This gets more complicated as your business grows, and you may potentially have employees. If you run completely independent, you will also need to obtain your own trucking authority. A trucking authority will register you for interstate transportation of goods and prove you have the necessary liability and cargo insurance.
From time to time you will also need to consult professional services for your business. Find both a CPA and an Attorney with experience working with owner operators and the unique situations you face. Make sure they have experience in this industry.
It is also important to understand how you will market your new business and find loads. Are you going to lease your truck to a company? Are you going to rely on freight brokers and remain independent? It is important to have a plan to no matter which situation you decide on. Spend some time talking to and looking for freight brokers you can work with. Having this established in the beginning can save trouble down the road.
Anticipating business situations and challenges will go a long way to saving you trouble in the future.
Read the first article in the series - Owner Operator Personality Traits.
Read the second article in the series - Financial Considerations for Owner Operators
Read the third article in the series - Equipment Selection for Owner Operators