Should YOU Become an Owner Operator in Today's Market??
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- Опубликовано: 17 май 2024
- Should YOU Become an Owner Operator in Today's Market??
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Freight rates are down, companies are going under, and truck prices, especially on used models, are at an all time low. In a time like this, the question most truckers find themselves asking is, should I purchase my own truck and start my own authority? Join Ronen as he explores whether or not becoming an owner operator is profitable in today's market, breaking down a 15-day pay statement, tax advantages of owner operators and lease operators as opposed to company drivers, and the correct ways to go about purchasing trucks!
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📚 Chapters
00:00 Introduction
00:31 Pay Statement Breakdown of Company Driver
01:57 Tax Advantages of Being An Owner Operator
04:11 Pay Statement Breakdown of Lease/Owner Operator
06:19 Comparing Pay Statements
07:34 Building Wealth As An Owner Operator: The Ronen Way
08:10 How To Go About Purchasing A Truck
09:43 Conclusion
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This is hands down the best RUclips trucking channel, you guys are great!
10/4
Ayyyeeeeeee, thanks for watching!
I'm an Owner Operator in Manitoba Canada. I come from a family of owner operators and business owners.
I get paid percentage not per mile.
I'm also the son of an accountant whose been in business 40 years specializing in Trucker accounting.
It's more advantageous for a one truck business to be Sole Proprietor and not Incorporated.
You only need to incorporate once you have multiple trucks running that you aren't driving yourself.
There's a lot of great info on this channel though and I've been enjoying binge watching everything!
Happy to hear that! Thanks for watching!
@@NorthAmerican-Trucking-News you see, that’s the pattern I see. Happy truckers as a single owner operator come from legacy or connections. Not big city people with cero legacy and connections.
What would you recommend for some one with no experience trucking looking to get out of the city and see this beautiful country? Would jumping straight in to O/O be too much? I have a few experienced friends but no O/O.
Well said bro good info thanks
Thanks for watching!
Good video. Thanks.
Thanks for watching!
I appreciate the information.
We appreciate you for watching!
Thank you ronen
Thanks for watching!
Excellent review, thanks for the advice 👍.
Best regards from the Dominican Republic 🇩🇴.
Best regards to you too! Thanks for watching!
Thanks for the video good information
Glad it was helpful!
Good information 👍
Thanks for watching!
Thanks for the advice! I'm new to financial planning and wasn't sure where to start. Any tips on finding a reliable financial adviser or resource to guide beginners?
As a beginner, it's essential for you to have a mentor that is verified by finra and SEC to keep you accountable. I'm guided by a widely known financial consultant Stacey Macken
Wow, I'm supprised Stacey Macken is being mention here. I started off with 5K.... Now with massive portfolio highly recommended...
This Woman has really change the life of many people from different countries and am a testimony of her trading platform
I met Stacey Macken at a conference in 2018 and we have been working together ever since.
Though I started with as low as $13,000 actually because it was my first time and it was successful, She's is a great personality in the state
Hey Ronen, enjoy watching your videos very informative. Can I get the same tax benefits like a Corporation while operating an LLC?
We're considering expanding on that in a future video!
If you run under someone else MC can you have your owner insurance or do you have to go on thiers
Great video Rohan.
It's Ronen :(
The owner operator calculation is missing their part of the fuel cost, as the surcharge often doesnt cover the WHOLE fuel bill. Also the maintence costs and a monthly portion of quarterly taxes are not deducted. Factor those in as well as truck payment amd insurance and the end number is closer to what the company driver makes.
That's fair
Can you make a video on how companies make their fuel surcharge program?
After said and done when doing taxes how much a year will you have to pay average every year
Very good info Ronen, I've had multiple people tell me to incorporate already. I've been super skeptical because I thought it would limit my ability to purchase assets essentially paying for the same assets twice when pulling the asset out of the corporation into personal use, having to buy it again and lose more money on the same asset via capital gains.
With only one truck you will be better off as Sole Proprietor if you are the one driving it.
As long as you have the right accountant.
I'm fortunate to be the son of a trucking accountant whose been in business 40+ years and come from a family of owner operators and business owners
Definitely get in touch with a tax accountant as well!
hi u guys have walkaway lease program ?
Excellent advice! I am waiting to get into your lease program in Concord, On., but apparently you do not have any trucks yet! I am waiting for a response also from you recruiters, I have sent them all my driving record and resume. Hope to hear from them soon!
We appreciate your patience! We've had an exorbitantly high number of applications this year 🤒
This is definitely not the time to become an owner operator. It's a brutal market. Noone is really making money. You're better off working as a company driver where you make money without worrying about losing your business.
We agree! Our recommendation? Only dive in if you have enough to weather out the downtick for as long as it lasts. If your rainy day fund can't last you at least a year... This market will break you
I've been wanting to know for a while now how one would spec a truck. I know you guys (and many other channels) have done videos on this before, but it's always been for highway trucks pulling dry vans or reefers.
I would like to know how you, Ronen, as a company owner, would spec a truck for highway, with light off-highway duty, pulling super-b's in the mountains, compared to how an owner operator would spec the same?
I currently work for a company in BC, pulling super-b's, and dream of owning my own truck in the future, but I haven't been able to get any real info from anyone on how to spec a truck for this application.
I'll raise that to him and see if we can cover it in a future video! Thanks for the suggestion!
I was an owner operator for year's now im company the difference in take home isnt enough for me to deal with all the bullshit anymore and as long as you live below your means you'll still be able to do what you could as an owner operator just none of the added stress
In the short term, that's the best advantage of being an owner operator!
Wow! Ronen, I think you just saved my family and my wifes sanity! Quick huestion. When you say open a corporation, does this mean trucking company / LLC?
Both should be applicable, but there is a bit of nuance between either one. I'll raise it to Ronen to see if we can do a video outlining the similarities and differences between either one
When you say corporation do mean like in US a llc or just ien business?
Both should work, but there are usually nuances around which business model presents what, so I'll raise it to Ronen to see if he can expand on the pros and cons of either
Mainly I'm just trying to find out if you have to have an llc or scorp to mark yourself as a w2 employee
Unless you can outright buy a truck & then have 20k left in the bank for whatever fees maintainence you will get... its better to go company for right now.
Always have a rainy day fund! And 20K is NOT enough, trust me! Depending on the truck bought, you'll need a lot more saved up!
@@NorthAmerican-Trucking-News very true
Amazing! I wish I would had this info weeks ago. I loan money to my corporation, but instead of doing it as a shareholder I put a note as a personal loan. I don't know how to correct that mistake and I would appreciate you can connect me with the right accountant. Thank you for all you do.
Shoot us an email at sponsorship@ettransport.ca, we'll help you out!
Hey i live in the us just got my license and i want to buy a trck to start my own llc, i want to haul a flat bed, planning on leasing a 2017 volvo. Any advice will be appreciated it
Don’t lease a 2017 Volvo. Buy it cash and put aside 30k emergency fund as u don’t know you might need a engine rebuild first month. Cash is king in this market. I would recommend u to get flatbed experience first before starting on your own.Best of luck
@@gurkaransingh2627will do, ill take a least 3 year of ex and save up the money
Shoot us an email to sponsorship@ettransport.ca, we can book you a consultation to dive into the intricacies of this much deeper than words can be shared in a comment!
You really should put in a year or two as a company driver to get tons of free lesson and real time experience. Try TMC or Melton Trans 1st. If do do have experience then go for it but avoid volvos, mack and internationals if you'll be pulling heavy.
@@Nich_Pavelow ill do the 2 years as a company driver first to learn more about the business then I’ll decide, in the mind time im studying the business
Does it have to what you said or can I get away just doing a LLC ?
Hmmm... I'll consider exploring this idea as a future video. It shouldn't be much different, but there might be a bit of nuance that lends itself to the right choice for you
@@NorthAmerican-Trucking-News thank you 🙏
Many people in the US open LLC's ? Do you get the same benefits as a corporation? Does anyone know??
a corporation is like a person, income is taxed and you pay taxes again when you pay yourself, llc the income money isn’t taxed until it’s spent to buy things or paid to employees. LLC is more friendly to smaller or one person businesses
@@smol_yote Thank you SO much for the reply!!! It helped a lot!
I'm considering designing a video that goes more into the nuances of corps vs llcs, we'll see how it goes!
I make on flatbed less now than I was making in 1999
And expenses are also higher, so even if it's a slight difference it's crazy different
@@NorthAmerican-Trucking-News you are absolutely right, however, I make literally less. I was getting $3.50 back then most of the time
I am currently a company driver and the idea of being an owner or lease operator is terrifying to me. If I lease with your company do you guys help me understand all this information??
You can also book a consultation! But yes! We do break down everything and in fact, mandate that you drive the truck for a period of time before settling so as to ensure that you're making an informed decision and not a shot in the dark based on stats!
Well, that's unusual, it's almost a thousand km. each day, it's a lot of mileage for that money.
Very true!
How 🤔 open Incorporation
Are you asking how to go about it? We'd recommend starting with a consult with a proper accountant so they can break down the process to you
Company driver made big💰
For now!
I’m not really understanding you mean don’t use LLC ?
LLCs are definitely viable for some business models, I'll raise it to Ronen to see if we can expand on the pros and cons of both!
@@NorthAmerican-Trucking-Newsoh ok thank you
99% of anyone starting a trucking business at this moment, is guaranteed to fail. Don't do it. Trucking industry has been terrible for the last two years. You will make the same amount doing Uber without so many government regulations.
Definitely agree, you have to be capable of weathering the downtick
I just bought my truck 🤦🏻♂️
It's a perfect time. Everything's gonna be cheap. You've just got a plan and scale. It correctly in this freight recession, but right now. Starting a trucking company is the smartest thing. You can do because the recession's going to end and you're gonna get in low.
@@rabrab3682 True of you have the money to buy all the cheap equipment and sit on it for at least a year or two more
Imma lease operator I doing good on my end.
Happy to hear it!
seems to me , the same wrire off rules if you start a home based business . . .
Any business really. Most people, who want to acquire assets, start a business solely for the purpose of acquiring their assets as business expenditures. That's why most people own an LLC.
Canada 13 hours can drive … usa 12 hrs would be nice
Would be nice!
He is lying
Owner operator dont make that much money
Owner operator do about 12000 miles max
He has edited to just showoff
I agree
Some owners don't
God bless canada
Haha, she needs her blessing
No.
Fair enough!
Overall its not good time to be owner operator. i have 20 reasons but can not write all of them here
We'd love to hear them!
Just wondering how much income an owner operator will generate without any benefits and small SS income at retirement time?….probably $40-50 thousand profit if he is lucky enough?
Nobody is talking about reality of income of a real owner operator…just the big fake numbers.
To be very honest, it's hard to say. Even if we present you a number right now, if rates fall the next month, it's gonna be a whole new projection. Most people give you the highest possible amount you CAN earn, so it's not fake just highly circumstantial.
Nobody should ever become an o/o in any market. Period.
99% of all truck o/o go bankrupt over time….
No US citizen or a green card holder should ever get into trucking. Trucking is a dead end job. Trucking is bad for you for the following reasons,
- it’s bad for your health. Nobody should be sitting in their truck for 10 - 11 hours in a day
- you cannot have a life.
- you cannot have a family or a relationship
- it pays better to be flipping a burger. At least you’d be paid a minimum wage plus over time.
- nobody likes truck drivers. People, including the government treat you like an animal. You are not wanted by any community, and you are treated like a thug.
Painting a scary picture
@@NorthAmerican-Trucking-News - I am only stating the facts.
America wants these animals (aka truck drivers) to deliver the product and get out of their town asap without hesitation. If you let truck drivers park overnight in their township/neighborhood, truck drivers throw bodily fluid bottles all over the place along with their solid human waste and food wrappers. Only people that can qualify as a truck driver are the ones that get allergic reactions to trash cans…. You’d find trash and human waste everywhere the truck driver was parked.
No start a LUMPER company they make a lot more money than the driver who drove miles to get the load to the receiver
If it sails, it sails!
No.
Sad to hear that that