Just getting started business questions

[Fotch]

My girlfriend and I are located in Virginia and enrolled in CDL classes with the intention of being contract team drivers. We are tentatively signed on with an operator that leases to FedEx. We should be in a truck around mid May. It is our understanding that we are paid on a percentage basis and will receive 1099's.

That being said we have several questions that pertain to setting up our business. First and foremost do we need to set up an LLC or incorporate to protect our personal assets? Is there an insurance instrument that we should consider to protect us for situations the operator/carrier doesn't cover? Operational items will need to be purchased prior to being assigned a truck, can they be considered a taxable deduction before signing a contract with the operator? What about licensing fees and school tuitions?

Then there are all the things that we just don't know, we don't know.

Reaching out to a couple "trucking" accountants haven't been very successful. Guess they're just too busy this time of year to answer questions, so any advice will be deeply appreciated.

Thanks

 

[Tobster317]

You can do an LLC if you want. Don’t know what you own but you don’t really need one. School tuition and licensing fees are tax deductible. If you are signing in we FedEx you will have to purchase insurance either thru them or on your own. Are you guys CDL A or B?
Any operational items for the truck should be on the owner. You will just need personal stuff.

 

[terryandrene]

First and foremost, as independent contractors, you will be an independent business. You will be able to claim tax deductions on all of your business related expenses. CDL school tuition, cell phones, per diem when away from home and lots more. Many Expediters use ATBS; for their account of expenses; they can educate you on all things you need and their prices will be reasonable. check h out to see if they suit you. The owner of the truck will be liable for cargo insurance deductibles and for a million dollar liability policy. You should make sure that you have a written contract with the truck owner so that you have no misunderstandings. You will want to know in advance: Who pays for fuel, tolls and minor vehicle expenses, when is payday and what is your pay. Per mile or percentage of FedEx payment to the truck owner. Expectations of home time and/or road time.

Keep asking questions and enjoy the ride and don't forget your pre and post trip inspections

 

[Fotch]

Thank you both for your insight.