4 Operating Authority or Leasing as it Applies to the Owner Operator

2001 Kenworth T600

 

Becoming An Owner Operator

4) Operating Authority or Leasing?

See my other posts:

A Holiday Wish

The Way it Was - A Short History of Trucking

Pro and Cons of Being an Owner Operator

FAQ for the Owner Operator
Pictures
Anti-Idling Regulations
Definitions and Industry Terms
Blackrock Auxiliary Power Unit (APU)
Interactive Cost per Mile (CPM) Calculator Spreadsheet
Privacy Policy
1) Owner Operator 411 – Welcome
2) Income and Expenses
3) Financing and Credit
5) Equipment
6) How To Do Bookkeeping and Other Necessary Paperwork
7) What You Need to Know About Loadboards
8) Companies That Lease Beginning Owner Operators
9) What You Actually Need to Get Started - Licenses, Permits, Insurance, and Taxes
10) Truck Driving Schools

I hope you got here by reading my previous posts (numbered 1 - 10) first. If not, I advise you to go back and do so. This post wont help you if you cant get the financing for a truck. If you dont understand how you will be making money (net), then I you are not ready for this step.

If, on the other hand, you understand that you will not get rich by owning your own big rig, have checked your credit report and Fico score, cleaned up all of your debt problems, and are sure you can secure a loan, then read on!

There are two types of owner operators. The one with their own authority, and the leased owner operator. For the purposes of this post, I am assuming you will be driving your own truck. If you are planning on hiring a driver you would be an owner, not an owner operator, but most of this information would still apply.

Your own AUTHORITY: This means that you are a “trucking company”. You will probably have to buy a trailer. You will have to get your own permits, and pay your own taxes. You will have to find your own freight.

The three different types authority are: Common Carrier, Contract Carrier, and Broker Authority.

COMMON CARRIERS provide for-hire truck transportation to the general public. Common carriers must file both liability (bodily injury & physical damage) insurance and cargo insurance.
The definition of an "authorized for-hire” carrier is a person or company that provides transportation of cargo or passengers for compensation. If you are a for-hire carrier, in addition to the USDOT Number you will also need to obtain an Operating Authority (MC Number). CONTRACT CARRIERS provide for-hire truck transportation to specific, individual shippers, based on contracts. Contract carriers must file only liability (bodily injury and physical damage) insurance.

A contract carrier cannot broker loads without first applying for and receiving a license to operate as a broker of freight.

BROKERS (brokers are not owner operators) arrange for the truck transportation of cargo belonging to others, for compensation, utilizing for-hire carriers to provide the actual truck transportation. Brokers must file either a surety bond or trust fund agreement.

If you want to get your own authority, there are lots of companies that can help you, such as (OOIDA). We are members of OOIDA and have been since just after they started, about 30 years ago. They are one of the best things I have ever spent my money on. Membership dues are only $45.00 a year, but sometimes they run a special. Includes a subscription to “Land Line” magazine.  In addition to helping you get your own authority, they offer discounts and rebates on equipment, as well as financing, they have truck, health, and life insurance, a drug and alcohol consortium, retirement plans, fuel cards, load boards, business information services, and much more!

Most owner operators are leased to a trucking company – a common carrier or a contract carrier. Actually, you are not leased, your truck is. When you lease your truck to a trucking company, they provide you with services and charge you for them (see "Income and Expenses" post).

What services they provide and how much they charge you varies from company to company, so ask a lot of questions before you lease on your truck and find out exactly what they do and what you would have to do.

Some of the common services provided:
1. they buy your license plates (and usually you have to reimburse them,

2. they pay fuel taxes,

3. they buy the permits,

4. they do all the record keeping and reporting for fuel taxes and permits, and/or

5. they provide you with a trailer (charging you rent).
 
These are all things you would have to do and pay for yourself if you had your own authority.
 
You need to check with trucking companies and see if they have enough freight and if they are leasing on more trucks. Ask other drivers of the company you think you might like to lease to if they are happy (they will probably say no), how much they gross, and how much they net (they will probably lie), and if they are planning to stay with the same company they are leased to. Why did I say they will probably tell you they are unhappy? Because truckers are notorious for complaining. They complain about the dispatchers, the loads, the dispatchers, the truck, the dispatchers, the pay, and, oh, did I mention the dispatchers? So, when they tell you how unhappy they are, ask them how long they have been with that company. If it is more than a year or two, they are probably happy. I also called them liars, but in reality, they just like to stretch the truth. Most people will tell you they are doing a lot better than they really are, but then you also get those who just like to exaggerate in the other direction. Ask to see their revenue statements. A lot of them will be glad to show you.
 
After you have asked all of your questions, DONT sign your lease until you have read it completely and understand what it says.
You are the lessor (the party who is giving the right for the use of the equipment).  The company is the lessee (the party getting the use of the equipment).
 
The lease is a legal contract.  It spells out what what percentage or mileage rate they pay, what expenses you are responsible for, and what expenses they are responsible for.  It should tell you when you will be paid and how (percentage or mileage).  It will tell you who is responsible for fines, damages, and losses. It will tell you if you have to have an escrow account.

"Escrow fund – Money deposited by the lessor with either a third party or the lessee to guarantee performance, to repay advances, to cover repair expenses, to handle claims, to handle license and State permit costs, and for any other purposes mutually agreed upon by the lessor and lessee"

Although you can be required to carry insurance on your equipment, you can not be required to buy your insurance through the company you are leased to.  They can not require you to have work done in their shop, rent or buy equipment (covers anything from load locks to trucks) from them, or buy their fuel.  You are an independent, and as such have the right and option of obtaining your own services or equipment from where ever you want.  This does not mean that you cant use their equipment of services, it just means you cant be required to.
 
If you are being paid a percentage, you have a right to see the freight bills, showing the amount the load pays.
If you have your own authority, none of the leasing information applies to you unless 1) you lease a truck from someone else (you are the lessee) or 2) you lease your equipment to someone (you are the lessor), which you can do.

Alphabet soup definitions:

USDOT: United States Department of Transportation

MC: Motor Carrier

FMSCA: Federal Motor Carriers Safety Administration

OOIDA: Owner Operators Independent Drivers Association

ICC: Interstate Commerce Commission. An agency which used to regulate the trucking (and railroad) industry, but is no longer in existence. It was disbanded in 1995.

IRP: International Registration Plan is a registration reciprocity agreement among jurisdictions in the United States and Canada which provides for payment of (truck) license fee on the basis of fleet miles (even if it is only one truck) operated in various jurisdictions

HUT or HVUT: Heavy (Vehicle) Use Tax - A federal tax imposed annually

CDL: Commercial Drivers License

IFTA: The International Registration Plan (IRP) is a reciprocal agreement that authorizes the proportional registration among the jurisdictions (states) of commercial motor vehicles. This means if a truck is operated in multiple jurisdictions, the owner must annually report mileage driven in each state and taxes are paid proportionately based on the mileage driven. The good news is the owner may pay those taxes in one jurisdiction—referred to as the base jurisdiction or base state. Vehicle owners are required to register under IRP, if:

• their vehicle is over 26,000 pounds gross vehicle weight (GVW); or
• has three or more axles, regardless of weight; or
• is a power unit and trailer whose combined GVW is in excess of 26,000 pounds, and
• your truck operates in at least two IRP jurisdictions

Resources:

FMSCA frequently asked questions – registration and licensing: "FMCSA"

Next post: What You Need to Know About Equipment

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I am sorry I have to do this, but due to spam "comments"  I feel I need to moderate comments from now on.

I am sorry for any inconvenience this may cause to my legitimate commenters.

Sell Your Reprints Residual Income Make Money to Write About Your Kids for 4 99 This Week

Okay, I realize a lot of you are seeing this or getting this in your email inbox because you already have the ebook Make Money to Write About Your Kids: Get Published in Parenting and Family Magazines.

For those who dont know what it is, here is the description AND I want you to know that for the next FIVE DAYS ONLY it is on Kindle Countdown for only $4.99 ... which is half the normal price, which is always a steal. Youll see! If you hate it, get a refund! If you love it, get in touch with me, start writing, tell your writer friends and writer groups about this Little Engine That Could resource that has changed lives but remains still, sadly, under the radar. Heres how to purchase!

My bet is that quite often you read a magazine or online article and say to yourself, “I could have written that – and better!” So you write your essay or article. Then what? Where do you submit it? Do you give up at this point? I’ve seen it happen too many times. Your writing dreams are crushed and those paychecks are never going to show up in your mailbox. 

Think of this ebook as your writing angel. It has 16 chapters of useful information before it dives into 239 paying markets, complete with submission email addresses, submission guidelines and pay information. This is the 5th edition of the ebook, and over the years it has been perfected to include not just regional markets such as San Diego Family, BC Parent, Orlando Family and more, but also has added national markets such as FamilyFun, BabyTalk, Parents, Parenting, Homeschooling Today and many more. 

I have personally been published in 138 regional parenting magazines in print and online since publishing this resource, all while maintaining a home, a marriage and homeschooling. I love being able to be at home with my kids while also living my dream of writing and making money for my family. I can get my work done mostly while the kids sleep and then head out to the pool or to the zoo with them! I want other mom and dad writers to be able to realize their dreams, as well. And, of course, you dont have to be a parent to write for and sell your reprints to these regional parenting publications!

*Please email me at mommykerrie at yahoo dot com after your purchase so I can send you the FREE at-a-glance spreadsheet that simply did not look right on the Kindle format! It has all the magazines, emails, approximate pay and state. 

You can find the list of publications I have worked with here: http://www.thekerrieshow.com/2008/03/cool-places-to-get-published.html

30 Magazine Submissions in 30 Days June Day 4 30Submissions30Days

Here is the post that started it all! I suggest you go check it out first before you take on the challenge. You can start the challenge at any time!

Here is the piece I am sending out for today, also a reprint and perfect for a September issue with grandparent info! Instead of sending my reprints once and then never again, I think sending them annually is smarter. Editors change, publications come and go, opinions and magazine space change.

I suggest you get a good system down that works for you. I use Excel and in one tab have all the publications and what they have used of mine (so Im not sending a magazine something theyve already used and wasting their time), in another tab I have it arranged by article so I can see when each was published and how it did, another tab for financial stuff like invoice numbers and amounts, and another tab for my submissions plan.

So here is my offering to the magazine gods today, and Ill keep you updated on how it fares. Its already been used 8 times and made $245 but I havent pitched it again as a reprint for THREE YEARS:

#4 Grandparent Traditions

And here is your #4 tip/step/help for the month:

Get the research for your piece done. Some prefer to research, then get the bones down and get the quotes (see here for tips 1-3), so do things in whatever order you feel most comfortable and productive with.

If you want to dust off your ideas and take the challenge with me sometime this summer, comment below and get my book here on Amazon as an ebook or as a print book. My book not only has all the markets you need with contact and pay information, but also embellishes on the tips Im going to be giving you this month to get you going. I recommend the print version (I make the same amount of money either way pretty much) because you are going to want to make notes, cross things out, highlight publications youve worked with, etc.

Here is Day #5!

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Weekly Writer Challenge 4 The Art of the Query

In case you missed them, check out Weekly Writer Challenge #1 and Weekly Writer Challenge #2. Oh, and Weekly Writer Challenge #3. You can still catch up to us!

AND dont forget ... all this is free! Lots of other writers charge beaucoup bucks and call it a CLASS, but folks, I have no class, so this little situation here is FREE! Lets hold each other accountable and make some dang money writing for magazines, increasing our experience and pay as we go!

As with the last challenge, please share this with any bloggers (= aspiring writers) or writers you know so they can participate. I have lately been seeing many writers making one red cent per word to write all day long to pull down the bucks, and I want so badly to pull them out of that situation and let them know their work is worth so much more than that, even if it DOES take weeks to get paid sometimes! (By the way, I just wrote for one red cent per word this last week and it was not my thing. Blog post to come, but I make more proofing docs on Fiverr.com.)

Again, you have until Sunday to do this second challenge, then more challenges will come out on Mondays and you will have 7 days to complete them and report back here! Even if you didnt do it or only half-assed it, let me know, because chances are I might not always be rockin the challenge, either.

You dont have to sign up, just check in somewhere in the comments section if you would!

At the very least, we can offer support to each other. Dont forget there is also a Facebook fan page for this site where we can interact about my FREE writers boot camp.

Challenge #4 is to let the article you just sent to all the regionals go out of your head. Please dont sit around checking your email all day for acceptances to your ONE article you just sent, like youre waiting for a guy to call.

Dont worry, because I will occupy your time with the Art of the Query! Yes, I want you to write a query for an article idea you have. It can be one of those ideas from Challenge #1 or something newer and more thought-out. Its all up to you. Just craft a query, and next week you will be sending it to an appropriate place. So think about who you want to write for and craft that query to them. A lot of my stuff can be sent multiple places, and I have no problem with simultaneous submissions because what are the chances Parents and Parenting are going to want my article? And if they both do, what a great problem to have and I just give the gig to the person who showed up in my email box.

Here are just a few of the national magazines I have in the ebook, along with contact information (and in some cases, PAY INFO!):

American Baby
BabyTalk
Family Fun
Parenting
Parents
Working Woman

and others, like the Cricket Magazine Group and some homeschooling mags, which scare me a little bit with their persnickety guidelines. Those dang homeschoolers! Wait, I AM one of those dang homeschoolers!

So here is a sample query letter:

To: tricia.obrien at bonniercorp dot com

Subject: Query: Desperately Seeking Sleep

Dear Tricia,

Being pregnant five times has practically made me an expert on sleep disturbances. If I wasn’t rubbing out a leg cramp, I was wrestling with four pillows, eating Tums like they were M&Ms or laying awake worrying.

I would like to write a piece for you called, “Desperately Seeking Sleep,” which would offer solutions to eight of the most common sleep disruptions experienced during pregnancy. This piece was originally published as “Pregnancy Sleep Solutions” in Kansas City Baby (LINK TO ARTICLE) and several other regional parenting magazines, and I know it would be a great help for your national readership, as well.

To make this article a knockout, I would interview national experts about the latest sleep solutions, research and recommendations (e.g., if Ambien is alright to take during pregnancy, whether or not calcium tablets work for leg cramps, etc.) and would get quotes from moms all over the country about their pregnancy sleep woes and solutions they found helpful. It would also include a sidebar of relaxation exercises to try before bedtime.

I have been published in over two dozen regional parenting magazines, including Calgary’s Child, Columbus Parent, San Diego Family, Family Timeand Washington Family. You can find all of my publishing credits, as well as links to published pieces, at KerrieMcLoughlin.blogspot.com.

I would be happy to customize this piece in any way you might need and look forward to hearing from you.

Sincerely,

 

Kerrie McLoughlin

The instructions and all the email addresses are in the ebook. You can click on "you have to have the resource Im using" above or [shhhhh] you can save a ton by going here. This will save you 50% and get you started.

You send 5 bucks (I only get 4), and I email you the 2012 version. Yes, there are some changes that are going into the 2013 version, so if you have emails that bounce back, Im on top of it in the newer version. AND the 2013 version will be ready later this week and all you have to do (if you decide this niche is for you), is go back to Fiverr and order another gig for $5. So you get both versions for only $10 when ONE usually goes for $19.85.

CanStockPhoto Review The New Big 4

Despite the ugly and only 125 pixel square banner it has, CanStockPhoto should be one of the Big 4, not Dreamstime. The ever popular microstock industrys jargon, the Big 4 consists of Shutterstock, IStockPhoto, Fotolia, and Dreamstime have always been the talk of all vector contributors in the world because of their success.

Nearly over a year in microstock industry, I realize that Dreamstime sales is actually very bad compares to the other 3. Just for a record, I have made a total of $482.69  in about 11 months at Dreamstime having 233 vectors with Dreamstime. On the other hand, I have 118 vectors with IStockPhoto and I make over $400.00 every month at IStockPhoto. Apart from the bad sales, Dreamstime vector uploading process is the craziest and longest among all.

Enough about Dreamstime, lets get back to the main topic. Yes, CanStockPhoto should be one of the Big 4 because the sales are much better than expected. I made about $100.00 per month with 250 vectors at CanStockPhoto. Apart from the easy uploading process, CanStockPhoto loves all my works. I have 100% acceptance rate at CanStockPhoto. They values my work and they sell them with a good price. Every sale averaged between $1.50 to $5.00 at CanStockPhoto. For a comparison, majority of my sales at Dreamstime ranges from from a pity $0.24 to $0.35.

Like many other stock agencies, CanStockPhoto should revamp their web design. It is mediocre. Period. I have involve in the Microstock industry for nearly a year now, and I have only joined CanStockPhoto in last 2 months because I have doubt with CanStockPhoto. The design of the website looks unprofessional and it feels incomplete. On the other hand, I must give praise to their programmers and marketing department because the functionality and the sales of the site are much better than anyone can expect.

CanStockPhoto - Mediocre web design

In my opinion, no bottom stock agencies should sell cheap. You simply cannot win the pricing war anymore with Shutterstock. Many CEOs thought that by lowering the price to $1 per vector would gain them competitive advantage, but this is wrong and it is proven wrong. Vector pricing should be about $5.00 to $15.00. Money earned from this should be spent on marketing. Come to the end of the day, it is all about exposure of your company. IStockPhoto sells our vector in an expensive way (about $15.00) and with the money earned, they can have even more aggressive marketing. Buyers who can only spent a pity $1.00 per vector are most probably not someone who will actually buy again because they are poor. If they cannot spend $10.00 per vector, they probably will not spend $1.00 per vector. They would rather download the vectors from illegal site than spending $1.00 for it. Do you want to sell shoes at South Africa or do you want to sell shoes to Roger Federer? Think!!!

CanStockPhoto does sell our vectors cheap in subscription package, but in a way, CanStockPhoto is able to attract its buyer to buy a lot in credits. I have got a couple of Extended License in just 2 months at CanStockPhoto and that is something.

To summarize this, I think CanStockPhoto is in the right direction. I hope they keep it up and hopefully one day later it can be truly recognized as one of the new Big 4. Until then, good luck to CanStockPhoto and I wish this company all the best.

How to Jailbreak Your iPhone or iPad on iOS 7 7 0 4

Till now I have shared knowledge about iPhone ,iPads apps, games and features. Now I am again with knowledge about iPhone and iPad which you search more on internet. You searched many times about jailbreaking of iPhone and iPad and found a lot of methods. All of these are not work some are difficult to implement. So to resolve these issues I am sharing with you very simple and easy method of jailbreaking. After reading this artcile you will able to learn How to Jailbreak Your iPhone or iPad on iOS 7 / 7.0.4. This method of jailbreaking is compatible with iPhone or iPad having iOS 7 or 7.0.4.So follow given below simple and easy steps to jailbreak iPhone and iPad.

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Steps to Jailbreak

1). Download latest version of iTunes from here, and install it.

2). Go to setting of iPhone /iPad >> General.

3). In general, click on Auto-Lock and change it to Never.Then move back.

4). Click on Touch ID & Passcode or just Passcode.

5). Tap Turn Passcode Off.Enter current Passcode to confirm.

6). Connect your iPhone / iPad with computer via USB / data cable.

7). Open iTunes on your computer. Click on Back Up Now.

8). This is important step to jailbreak iPhone / iPad / iPod. Download
Evasi0n jailbreak and save it to your computer.

9). If you are using Mac then double click the .dmg file  and install the Evasion program. 

10). If you are using Windows then  right-click the .zip file >> Extract all >>Click exe file inside to install the program

11). Click on Jailbreak.When prompted then unlock the home screen.

12). Click on  Evasi0n app icon on your iPhone and wait for it to reboot.

13).  Exit the Evasi0n app when it’s done and Cydia will appear on your device.

14). Thats all. You have done. Share this information with your friends. 

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